Pegasystems Reports Strong Q3 2025 Financial Performance

Pegasystems ( (PEGA) ) has released its Q3 earnings. Here is a breakdown of the information Pegasystems presented to its investors.

Pegasystems Inc., known as the Enterprise Transformation Company™, specializes in providing AI-powered platforms for enterprise transformation, focusing on automating workflows, personalizing customer experiences, and modernizing legacy systems. The company, headquartered in Waltham, Massachusetts, has been a significant player in the tech industry since 1983.

In its latest earnings report for the third quarter of 2025, Pegasystems showcased robust financial performance, highlighted by a notable 14% year-over-year growth in Annual Contract Value (ACV) and a remarkable 27% increase in Pega Cloud ACV. The company also reported a substantial 38% growth in cash flow from operations and free cash flow, alongside repurchasing 8.7 million shares for $393 million year-to-date.

Key financial metrics from the report reveal a 17% increase in total revenue, reaching $381.35 million for the quarter, and a significant turnaround in net income, which rose to $43.36 million from a loss in the previous year. Non-GAAP net income surged by 59% to $55.16 million, while non-GAAP diluted earnings per share increased by 58% to $0.30. These results underscore Pegasystems’ strong sales performance and financial discipline, driven by the momentum of its Pega Blueprint initiative.

The company’s strategic focus on AI and digital transformation continues to resonate with clients and partners, as evidenced by the growing commitment to Pega Blueprint. This focus has not only accelerated Pega Cloud ACV growth but also positioned Pegasystems as a leader in digital transformation and AI opportunities.

Looking ahead, Pegasystems remains committed to leveraging its AI strategy to drive further growth and transformation in enterprise applications. The management’s outlook suggests continued focus on expanding AI capabilities and maintaining financial discipline to capitalize on emerging opportunities in the tech sector.