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LAS VEGAS - Pegasystems Inc. (NASDAQ: PEGA), a $8.38 billion market cap company specializing in enterprise transformation with impressive 75.74% gross profit margins, today announced at PegaWorld new AI enhancements to its Pega App Studio. These enhancements are designed to assist developers with application development, promising to help enterprises innovate more efficiently and bring products to market faster. According to InvestingPro analysis, PEGA is currently trading near its Fair Value, reflecting the market’s recognition of its strong business fundamentals.
The updates include an AI developer agent that provides real-time guidance and best practice suggestions, streamlined integrations for easier connections with third-party systems, and an AI-powered design experience for robotic process automation (RPA) that builds automations for systems lacking APIs. Additionally, AI-generated test suites aim to ensure high-quality deployments while reducing testing time and increasing business agility. This innovation drive has contributed to PEGA’s robust revenue growth of 14.29% over the last twelve months, with total revenue reaching $1.64 billion.
A notable feature is the AI-powered RPA design experience, which simplifies the creation of automations between disparate systems. The AI agent analyzes user interfaces and generates the necessary automations using advanced techniques, which is particularly useful for integrating legacy applications.
The company also introduced accelerated UX configuration, where AI assists in assembling data fields and layouts for developers to customize, aimed at expediting the development of customer and employee-facing user experiences.
These AI-driven development enhancements are expected to be available in the Q3 2025 release of Pega App Studio, part of Pega’s core portfolio that combines AI, automation, and cloud-native capabilities.
Pegasystems’ chief product officer, Kerim Akgonul, emphasized the importance of integrating AI into the development lifecycle to meet organizational requirements and regulations. He stated that these AI enhancements represent a significant advancement in enterprise application development, increasing developer productivity and transforming the application delivery process.
The announcement was made at the annual PegaWorld user conference, where the company showcases innovation stories and demos of its latest offerings. With an overall financial health score of "GREAT" on InvestingPro, which offers 15+ additional exclusive insights and a comprehensive Pro Research Report for PEGA, the company appears well-positioned to execute its innovation strategy.
The information for this article is based on a press release statement from Pegasystems Inc.
In other recent news, Pegasystems Inc. reported a strong start to 2025, significantly surpassing earnings expectations for the first quarter. The company posted an earnings per share (EPS) of $1.53, well above the forecasted $0.54, with revenue reaching $475.63 million, exceeding the anticipated $357.24 million. Additionally, Pegasystems has achieved a debt-free status by repaying $468 million in convertible notes. In another development, Pegasystems is set to join the S&P MidCap 400, replacing Nordstrom Inc. This inclusion is expected to enhance the company’s visibility and liquidity. On the analyst front, DA Davidson increased Pegasystems’ price target to $90, maintaining a Neutral rating, while Citi raised its price target to $116 and reiterated a Buy rating. Both firms acknowledged Pegasystems’ strong quarterly performance and strategic initiatives, such as its GenAI strategy and Pega Cloud growth. These recent developments highlight Pegasystems’ continued progress and solid execution in the current business environment.
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