Examining the Future: Pegasystems's Earnings Outlook
Pegasystems (NASDAQ:PEGA) is gearing up to announce its quarterly earnings on Tuesday, 2025-07-22. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Pegasystems will report an earnings per share (EPS) of $0.19.
The announcement from Pegasystems is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Overview of Past Earnings
During the last quarter, the company reported an EPS beat by $0.54, leading to a 28.78% increase in the share price on the subsequent day.
Here's a look at Pegasystems's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.23 | 0.74 | 0.18 | 0.13 |
| EPS Actual | 0.77 | 0.81 | 0.20 | 0.26 |
| Price Change % | 28.999999999999996% | -20.0% | 15.0% | 13.0% |
Performance of Pegasystems Shares
Shares of Pegasystems were trading at $52.21 as of July 18. Over the last 52-week period, shares are up 66.6%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Pegasystems
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Pegasystems.
The consensus rating for Pegasystems is Buy, derived from 23 analyst ratings. An average one-year price target of $94.43 implies a potential 80.87% upside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of AppFolio, Confluent and Klaviyo, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for AppFolio, with an average 1-year price target of $222.5, suggesting a potential 326.16% upside.
- Analysts currently favor an Buy trajectory for Confluent, with an average 1-year price target of $29.7, suggesting a potential 43.11% downside.
- Analysts currently favor an Outperform trajectory for Klaviyo, with an average 1-year price target of $38.46, suggesting a potential 26.34% downside.
Analysis Summary for Peers
The peer analysis summary outlines pivotal metrics for AppFolio, Confluent and Klaviyo, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Pegasystems | Buy | 44.07% | $373.18M | 14.28% |
| AppFolio | Neutral | 16.15% | $138.20M | 6.40% |
| Confluent | Buy | 24.80% | $202.00M | -6.80% |
| Klaviyo | Outperform | 33.26% | $212.13M | -1.34% |
Key Takeaway:
Pegasystems ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity compared to others. Overall, Pegasystems is positioned at the top in revenue growth and gross profit, but lags behind in return on equity.
All You Need to Know About Pegasystems
Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.
Unraveling the Financial Story of Pegasystems
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Pegasystems's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 44.07%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Pegasystems's net margin is impressive, surpassing industry averages. With a net margin of 17.96%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Pegasystems's ROE stands out, surpassing industry averages. With an impressive ROE of 14.28%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Pegasystems's ROA stands out, surpassing industry averages. With an impressive ROA of 5.53%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Pegasystems's debt-to-equity ratio is below the industry average. With a ratio of 0.13, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Pegasystems visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
