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WALTHAM, Mass. - Pegasystems Inc. (NASDAQ:PEGA), a technology company with a market capitalization of $8.83 billion and impressive gross profit margins of 75.74%, has received FedRAMP High Authority to Operate status for its generative AI solutions, the company announced Wednesday in a press release. According to InvestingPro data, the company has demonstrated strong financial execution with revenue growth of 14.29% over the last twelve months.
This designation expands on Pega’s earlier FedRAMP High ATO certification and enables government agencies using Pega Cloud for Government to deploy the company’s generative AI tools while meeting federal security and compliance standards. InvestingPro analysis shows the company maintains a strong financial health score of 3.34 (rated as "GREAT"), suggesting robust operational capabilities to support its government initiatives.
The newly certified solutions include Pega Coach, which provides contextual advice to users; Pega Knowledge Buddy, which synthesizes answers from internal knowledge bases; Pega Automate, which handles workflow automation; and developer agents that accelerate application development processes.
The certification also covers architectural enhancements to Pega Cloud for Government, including improved scalability through microservices and Kubernetes-based container orchestration, which allows automatic scaling during peak demand periods.
FedRAMP evaluated Pega Cloud for Government across hundreds of security controls to validate its ability to mitigate risks associated with cloud computing environments and sensitive federal data.
"This latest FedRAMP High accreditation allows us to bring our enterprise-class generative AI capabilities used by top commercial organizations worldwide into the public sector," said Jen Pratt, general manager of North America government at Pega.
The company positions these tools as solutions to help federal agencies improve service delivery while using fewer resources, addressing the government’s focus on operational efficiency.
Pegasystems describes itself as "The Enterprise Transformation Company" that provides AI decisioning and workflow automation solutions to organizations worldwide. InvestingPro subscribers can access 16 additional key insights about PEGA, including detailed analysis of its growth trajectory and valuation metrics. For comprehensive analysis, check out the Pro Research Report, available as part of the InvestingPro subscription, which covers what really matters about PEGA and 1,400+ other top stocks through intuitive visuals and expert analysis.
In other recent news, Pegasystems has announced several significant developments that are catching the attention of investors. The company updated its fiscal year 2025 revenue guidance to $1.7 billion, reflecting a 13.6% year-over-year growth, which follows a strong Q1 revenue performance. This update led Rosenblatt analysts to raise their price target for Pegasystems to $112, maintaining a Buy rating, as they noted the positive momentum from new AI product announcements and strategic initiatives. Citi analysts also increased their price target to $131, highlighting a $100 million increase in revenue and an $0.84 rise in EPS estimates, alongside the company’s focus on GenAI capabilities.
Additionally, Pegasystems shareholders have approved a two-for-one forward stock split and an increase in authorized common shares from 200 million to 400 million. This decision was part of several proposals approved during the company’s 2025 Annual Meeting of Shareholders. KeyBanc analysts reaffirmed their Overweight rating with a $112 price target, citing efficiency gains from the Blueprint tool, which is expected to enhance the company’s ability to secure new clients and expand margins.
DA Davidson maintained a Neutral rating on Pegasystems but raised its price target to $50, following discussions on competitive positioning and growth strategies. These developments underscore Pegasystems’ ongoing efforts to strengthen its market position through strategic partnerships and product innovation.
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