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6 stories mentioning PEGAUpdated 9d ago

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Wire

Pegasystems Seeing Accelerated Sales Cycles From Blueprint Design Tool, RBC Says

Pegasystems' (PEGA) Blueprint application design tool is accelerating sales cycles for the company and its partners, with faster enterprise closings and about a 30% increase in total pipeline for Pegasystems, RBC Capital Markets said in a Monday note.RBC said its conversations with Pegasystems partners and customers indicated positive views on Blueprint, particularly in design and prototyping. Pegasystems could also tap into a significant market of legacy applications that need upgrading through process automation, the brokerage added."Partners note that if anything, customers are leaning more aggressively into legacy modernizations as they prepare their systems/data estates to be able to leverage AI and Agents," RBC said.Pegasystems' long-term financial targets, which include 80% in gross margin and at least $700 million in free cash flow by 2028, appear achievable with AI and agentic AI as upside drivers, the investment firm added.RBC reiterated its outperform rating and $60 price target on Pegasystems.Price: $33.98, Change: $-1.14, Percent Change: -3.23%

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Wire

Pegasystems Driving Customer Adoption With Faster Agentic AI Deployments, Wedbush Says

Pegasystems (PEGA) is seeing accelerating customer adoption, driven by its ability to modernize legacy systems and deploy agentic artificial intelligence in months rather than years, Wedbush Securities said in a note Tuesday.The analysts said they attended PegaWorld, the company's annual user conference in Las Vegas, where it outlined key updates to its AI strategy, featuring Blueprint, introduced new product innovations including the launch of Infinity 2026, and detailed an updated go-to-market approach.Token economics was a major topic during customer discussions, particularly as enterprises evaluate agentic AI deployments. Management acknowledged that token pricing is likely to rise over time as AI providers continue investing heavily in data center infrastructure, the analysts said, adding that Pega has designed its architecture to minimize customer exposure to token-related cost uncertainty.Pegasystems also remains focused on legacy transformation projects. Many customers continue to rely on legacy systems that limit their ability to deploy agentic AI processes at scale. The company is helping customers transition from legacy system processing to deployed transformation projects in a matter of months, compared with transformation projects that historically took years to complete, the analysts said.Wedbush maintained an outperform rating with a $60 price target on Pegasystems.Price: $33.87, Change: $-1.24, Percent Change: -3.53%

$PEGA
Wire

Pegasystems Poised for Growth Acceleration With Blueprint Platform, Wedbush Says

Pegasystems (PEGA) is poised to accelerate annual contract value growth and meet its 2026 free cash flow target as Blueprint, its low-code workflow-design platform, plays a larger role in early customer engagement, Wedbush Securities said Friday in a report.Wedbush said it is "incrementally more bullish" following discussions with Pegasystems executives and the recent pullback in shares appears "overblown."Blueprint is simplifying how Pegasystems works with prospective customers by helping them design and visualize use cases during initial meetings, historically a costly hurdle for the company, Wedbush said. The platform's ease of use supports expectations that new customers will drive about 15% of subscription-contract growth in fiscal 2026, up from 10% previously, the report said.On costs, Pegasystems has taken a "methodical approach" to stock-based Compensation, keeping it in the 8% to 9% range of revenue and prioritizing consistency rather than tying compensation to fluctuating stock prices, Wedbush said. That discipline should support sustainable free cash flow generation despite broader software-sector pressures, the report said.Wedbush maintained its outperform rating on Pegasystems stock with a price target of $60.Price: $36.53, Change: $-0.02, Percent Change: -0.05%

$PEGA
Wire

Pegasystems Sees Reacceleration in H2 on Backlog Growth, Higher Cash Generation, Wedbush Says

Pegasystems (PEGA) expects to see a reacceleration in the second half of the year on backlog growth and higher cash generation despite its recent first-quarter results missing Wall Street estimates on the top and bottom lines, Wedbush said in a Thursday research report.Pega Cloud annual contract value in Q1 fell short of consensus at $906.7 million as the company shifts its ACV mix to the cloud, according to the note.Blueprint is accelerating conversion to Pega Cloud and driving incremental opportunities to the pipeline, expected to help the company outperform throughout 2026, Wedbush stated.The brokerage said it reiterated its outperform rating on the stock and price target of $60 per share.Price: $35.09, Change: $-2.39, Percent Change: -6.38%

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Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Pegasystems Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We maintain our target price at $44, based on a forward P/E of 16x our 2026 EPS forecast of $2.75, below its three-year average. We increase our 2026 EPS estimate to $2.75 from $2.74 but lower our 2027 EPS projection to $3.15 from $3.22. PEGA reported mixed Q1 2026 results, with total revenue of $430M declining 10% Y/Y, missing consensus, while non-GAAP EPS of $0.46 missed by $0.23, primarily due to a 49% decline in subscription license revenue and higher legal expenses. However, Pega Cloud revenue surged 36% to $205M (now 48% of total revenue), and Pega Cloud ACV accelerated 29% Y/Y to $907M (27% on a constant currency basis), reflecting momentum in the cloud transition. We anticipate stronger 2H 2026 on a favorable renewal mix, strong new logo pipeline, and traction with Blueprint. We see opportunities to convert existing legacy systems to Blueprint-enabled cloud solutions and expect Pega Cloud growth in the 30%-plus range.

$PEGA
Research

Research Alert: Pega: Q1 Results Miss, But Strength In Pega Cloud Offsets

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:PEGA reported total revenue of $430M, missing consensus by $37.2M and declining 10% Y/Y, while non-GAAP EPS of $0.46 missed by $0.23 and fell 39% Y/Y. However, Pega Cloud revenue surged 36% Y/Y to $205M, now representing 47.7% of total revenue and validating the cloud transition thesis. Pega Cloud annual contract value (ACV) acceleration remains the standout metric, growing 29% Y/Y to $906.7M and accelerating from 23% growth in Q1, demonstrating continued strong demand for the company's AI workflow automation platform. Total ACV grew 12% Y/Y to $1.62B, with backlog increasing 16% Y/Y to $2.01B providing revenue visibility. We believe the robust cash flow generation of $206.5M in free cash flow and a solid balance sheet with $474M in cash provides financial flexibility for continued AI investment. Despite near-term profitability pressure, we expect the sustained Pega Cloud momentum and strong ACV growth to support the business transformation.

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