Overview

* Pegasystems ( PEGA ) Q3 revenue grows 17% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats consensus, driven by strong sales performance

* Company repurchased 8.7 mln shares for $393 mln year-to-date

Outlook

* Company did not provide specific future guidance in the press release

Result Drivers

* AI STRATEGY - Pegasystems ( PEGA ) attributes its Q3 success to a differentiated AI strategy that enhances speed, predictability, and scale in enterprise applications

* PEGA CLOUD GROWTH - Pega Cloud ACV increased by 27% yr/yr, driven by strong sales and the momentum of Pega Blueprint

* CASH FLOW AND BUYBACKS - Operating cash flow grew 38% yr/yr, enabling significant share repurchases

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $381.35 $345.24

Revenue mln mln (11

Analysts

)

Q3 Beat $0.30 $0.19

Adjusted (11

EPS Analysts

)

Q3 EPS $0.24

Q3 Beat $55.16 $36.09

Adjusted mln mln (11

Net Analysts

Income )

Q3 Net $43.36

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Pegasystems Inc ( PEGA ) is $65.00, about 15.7% above its October 20 closing price of $54.79

* The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)