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Pegasystems ( (PEGA) ) just unveiled an update.
Pegasystems Inc. reported that 2025 was a year of strong execution, with annual contract value rising 17% year on year to $1.61 billion and Pega Cloud ACV jumping 33%, alongside a 17% increase in total revenue and a 45% surge in cash flow from operations and free cash flow. On February 10, 2026, the company reinforced its confidence with 2026 guidance of 15% ACV growth and sharply higher cash flows while extending its share repurchase program by a year to June 30, 2027 and lifting the authorization by $1 billion, signaling an ongoing commitment to shareholder returns and its cloud-led growth strategy.
The robust 2025 results included substantial GAAP profitability improvements, with full-year GAAP net income nearly quadrupling and diluted GAAP EPS up almost threefold, reflecting both operating leverage and financial discipline. Subscription revenues, particularly from Pega Cloud, continued to outpace the wider business, underscoring the company’s transition toward higher-margin recurring revenue and strengthening its competitive position in enterprise transformation software markets.
The most recent analyst rating on (PEGA) stock is a Buy with a $62.00 price target. To see the full list of analyst forecasts on Pegasystems stock, see the PEGA Stock Forecast page.
Spark’s Take on PEGA Stock
According to Spark, TipRanks’ AI Analyst, PEGA is a Neutral.
The score is anchored by strong underlying financial performance and a constructive earnings outlook (cloud ACV acceleration and record cash flow), but is held back by very weak technical momentum (deeply oversold and below major moving averages) and only middling valuation support (premium P/E with low yield).
To see Spark’s full report on PEGA stock, click here.
More about Pegasystems
Pegasystems Inc., listed on Nasdaq as PEGA, positions itself as an “Enterprise Transformation Company” providing software and cloud-based platforms that help large organizations modernize legacy systems and drive digital process automation. The company’s recurring business model is increasingly anchored in Pega Cloud subscription services, which are becoming a larger share of total revenue and annual contract value.
Average Trading Volume: 1,398,823
Technical Sentiment Signal: Sell
Current Market Cap: $6.81B
For detailed information about PEGA stock, go to TipRanks’ Stock Analysis page.