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Further Reading from MarketBeat Time to Take Notice: PEGA's GenAI Blueprint Delivers Huge Q3 BeatWritten by Leo Miller. Published 10/23/2025. On a day that featured several impressive earnings reports, tech stock Pegasystems (NASDAQ: PEGA) more than held its own. Shares jumped 15% on Oct. 22 as the market digested the company's latest financials, topping the day's most talked-about post-earnings gainer, Intuitive Surgical (NASDAQ: ISRG), which rose 14%. Pegasystems' strong gain further cemented its reputation as an artificial intelligence (AI) solution provider investors should notice. Shares have returned roughly 89% over the past 52 weeks, and Pega's rally may be just beginning. Below, we break down the latest quarter and explain why the stock likely isn't done advancing. PEGA Trounces Forecasts; Cloud ACV Growth Accelerates In Q3, Pega reported revenue of about $381 million, a 17.3% increase that comfortably beat expectations of $352 million (8.1% growth). Even more notable was adjusted earnings per share (EPS) of $0.30, which crushed estimates of $0.18. Adjusted EPS grew 50% year over year, versus analysts' consensus for a 10% decline. Gallup reports that two-thirds of Americans now view socialism favorably — a shocking shift that one analyst says signals a much deeper and more dangerous transformation underway. Porter Stansberry calls it The Final Displacement — a once-in-a-century realignment of technology, society, and economics that could create vast new wealth for some while devastating millions of others. His new documentary breaks down the warning signs, the accelerating pace of this change, and how to prepare before it reshapes the world around us. Click here to stream The Final Displacement for free Key Points - Pegasystems continued its GenAI momentum, posting a massive Q3 earnings beat.
- Shares soared as the company's cloud growth accelerated, driven by its differentiated GenAI strategy.
- Pega has now seen its shares rise after 83% of its past 12 earnings releases. GenAI Blueprint could lead to more beats.
As a forward-looking indicator, Pega Cloud average contract value (ACV) grew 27%. ACV measures the amount of new annual recurring business added in the quarter, and because customers pay over time it takes a while to flow into revenue. That Pega Cloud ACV grew roughly 1,000 basis points faster than revenue suggests potential for accelerating sales over the next couple of years. ACV growth also accelerated from 25% in the prior quarter, underscoring growing momentum. Pega is steering both existing and new customers toward its cloud-based offerings rather than its on-premises Client Cloud software, making Pega Cloud the company's strategic future. Strong results in this area are therefore a very positive sign. GenAI Blueprint: Pega's Ace in the Hole GenAI Blueprint is a key driver of the company's Pega Cloud growth. Blueprint helps customers design internal applications much faster by using AI, and the tools it creates then automate tasks in a predictable, human-guided way. Pega argues this approach yields consistent results—critical for regulated, data-sensitive industries such as healthcare and banking—where AI agents built without such guardrails can produce inconsistent answers. The company says Blueprint is now the "exclusive way" it begins new conversations with clients. With Pega Cloud ACV rising quickly, Blueprint's value proposition appears to be resonating. Blueprint is a differentiator compared with many other AI agents, and it's currently driving growth from Pega's existing client base. If that momentum expands to attract a meaningful number of new customers, the company could see even stronger results going forward. PEGA Is a Repeat Earnings Winner and Analysts See Solid Upside Pega's strong earnings performance is not a one-off. Over the last 12 quarters, Pega shares have closed up an average of 10% the day after reporting earnings, declining on only two occasions. While past performance doesn't guarantee future results, the company has repeatedly exceeded expectations. After the latest results, analysts' average price target rose by just under 17%, suggesting many viewed the 15% post-earnings move as justified. The consensus price target from those analysts now sits at $75.40, implying roughly 15% upside versus the stock's Oct. 23 close—substantially more than the 6% upside implied by the MarketBeat consensus price target. If Pega continues to deliver stellar results, analysts' targets could move higher still. Overall, the momentum behind Pega, led by GenAI Blueprint, is clear. Blueprint gives the company a tangible path to drive meaningful growth, and while Pega has already performed well, its bull run may have further to run.
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