Oklo stock tumbles as Financial Times scrutinizes valuation
WALTHAM, Mass. - Pegasystems Inc. (NASDAQ:PEGA) reported third-quarter earnings that exceeded analyst expectations, driven by strong Pega Cloud growth and continued momentum from its AI strategy. The enterprise software company saw its shares rise 3.4% following the announcement.
The company posted adjusted earnings of $0.30 per share, significantly outpacing the analyst consensus of $0.20. Revenue reached $381.35 million, surpassing expectations of $351.54 million and representing a 17% increase YoY from $325.05 million in the same quarter last year.
Annual Contract Value (ACV), a key performance metric for the company, grew 14% YoY to $1.56 billion. Pega Cloud ACV showed particularly strong performance, increasing 27% YoY to $815.37 million.
"Our differentiated AI strategy continues to resonate deeply with clients, prospects, and partners, unlocking new levels of speed, predictability, and scale in enterprise applications," said Alan Trefler, founder and CEO. "The results speak for themselves as clients and partners embrace Pega Blueprint and commit to strategic transformation with Pega."
Subscription services revenue, which includes Pega Cloud and maintenance, rose 18% YoY to $264.2 million, while subscription license revenue increased 33% to $60.6 million. The company also reported strong cash flow performance, with operating cash flow and free cash flow both growing 38% YoY.
Ken Stillwell, Pega COO and CFO, noted: "Our strong sales performance, powered by the momentum of Pega Blueprint, drove Q3 2025. Pega Cloud ACV growth accelerated again, and we’ve generated $347M in operating cash flow allowing us to have a significant year of buybacks."
The company has been active in returning capital to shareholders, repurchasing 8.7 million shares for $393 million year to date.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.