
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems reported a 9% year-over-year growth in subscription revenue, reaching $326.0 million, which surpassed market expectations and signifies successful progress in the company's transition to a subscription model. Total revenue also increased by 9% year-over-year to $384.5 million, driven by strong demand for its Pega Blueprint and AI offerings, exceeding estimates significantly. Additionally, the company's total remaining performance obligation (RPO) grew 31% year-over-year to $1.835 billion, indicating a robust future revenue stream and further solidifying the company’s financial outlook.
Bears say
Pegasystems's Maintenance Annual Contract Value (ACV) declined by 3% year-over-year to $301.4 million, indicating potential challenges in sustaining long-term revenue growth despite recent demand for legacy transformation. The company's gross margin of 73.6% fell short of prior periods, reflecting pressures from a more diverse product portfolio, specifically the lower-margin Pega Cloud. Moreover, there are significant downside risks associated with limited margin expansion due to increased sales and R&D investments, as well as potential negative impacts from deteriorating macroeconomic conditions and inconsistent execution on large deals.
This aggregate rating is based on analysts' research of Pegasystems and is not a guaranteed prediction by Public.com or investment advice.
Pegasystems (PEGA) Analyst Forecast & Price Prediction
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