Pegasystems Reports Strong Growth in Pega Cloud ACV

Pegasystems ( (PEGA) ) has issued an update.

On June 2, 2025, Pegasystems Inc. presented its financial update, highlighting significant growth in its Annual Contract Value (ACV) driven by Pega Cloud, which grew from $50 million in 2017 to $700 million in 2025. The company has completed its multi-year subscription transition and achieved the Rule of 40, balancing growth and profitability. Pegasystems is on a strong trajectory toward sustained profitability, supported by its strategic focus on generating free cash flow and capital allocation, including share repurchases and dividend payments. The company’s GenAI Blueprint and large market opportunities are expected to drive further growth.

The most recent analyst rating on (PEGA) stock is a Buy with a $78.00 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 Outperform.

Pegasystems Inc. shows a robust financial performance with strong revenue and profit growth, alongside efficient cash flow management. The technical analysis indicates caution due to potential overbought conditions and negative momentum. Valuation remains a concern with a high P/E ratio, though positive earnings call sentiment and strategic initiatives bolster confidence in future growth.

To see Spark’s full report on PEGA stock, click here.

More about Pegasystems

Pegasystems Inc. operates in the software industry, providing customer engagement and digital process automation solutions. Its primary products include the Pega Platform, which is used for building enterprise applications, and Pega Cloud, which supports cloud-based operations. The company focuses on enterprise clients looking to digitally transform their operations, particularly in key verticals.

Average Trading Volume: 1,076,838

Technical Sentiment Signal: Strong Buy

Current Market Cap: $8.4B

For a thorough assessment of PEGA stock, go to TipRanks’ Stock Analysis page.