
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems has demonstrated robust financial performance, with a year-over-year revenue increase of 17% in Q3, totaling $381.4 million, surpassing both company estimates and consensus expectations. The company’s backlog (RPO) also witnessed a significant growth of 19% year-over-year, reaching $1.8 billion, primarily driven by its cloud backlog which constitutes 73% of total backlog at $1.288 billion. Furthermore, Pega’s cloud revenue grew to $184.5 million, reflecting a 28% organic increase, highlighting the positive impact of digital transformation trends among large enterprises.
Bears say
Pegasystems has provided FY25 revenue guidance that falls short of consensus expectations, anticipating approximately $1,700 million, which represents only 14% year-over-year growth amid declining term licenses projected for Q4. Additionally, the company's operating margins of 15% in Q3 were below the forecasted 15.5%, raising concerns about profitability management in a challenging macroeconomic environment. Compounding these issues, significant risks related to fluctuating renewal rates, competitive pricing pressures, and unpredictable revenue performance further contribute to a negative outlook on the stock.
This aggregate rating is based on analysts' research of Pegasystems and is not a guaranteed prediction by Public.com or investment advice.
Pegasystems (PEGA) Analyst Forecast & Price Prediction
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