Loading...
•
Dec 31, 2025
Pegasystems Q4 2025 Earnings Report
Pegasystems reported strong Q4 2025 growth driven by innovation, with significant increases in ACV, Pega Cloud ACV, and cash flow from operations.
Key Takeaways
Pegasystems Inc. announced an extraordinary year of progress and execution in 2025, with Q4 results reflecting strong financial discipline. The company reported a 17% year-over-year growth in Annual Contract Value (ACV) and a 33% increase in Pega Cloud ACV. Cash flow from operations and free cash flow also saw substantial growth of 45% year-over-year, exceeding guidance and the Rule of 40.
Annual Contract Value (ACV) grew 17% year over year (14% in constant currency).
Pega Cloud ACV increased 33% year over year (28% in constant currency).
Cash flow from operations and free cash flow grew 45% year over year.
The company increased its share repurchase authorization by $1 billion.
Revenue by Segment
Forward Guidance
Pegasystems Inc. provided strong guidance for 2026, anticipating continued growth in ACV, revenue, and cash flow, reflecting confidence in its recurring business model and technology leadership.
Positive Outlook
- 2026 guidance of 15% ACV growth.
- Expected GAAP and Non-GAAP revenue of $2.0 billion.
- Projected GAAP diluted earnings per share of $1.87.
- Anticipated Non-GAAP diluted earnings per share of $2.75.
- Forecasted cash provided by operating activities of $595 million and free cash flow of $575 million.
Challenges Ahead
- Evolving U.S. tax legislation may impact the amount of tax payments.
- The company's forward-looking statements are subject to risks and uncertainties that are difficult to predict.
- Potential legal and financial liabilities, as well as damage to reputation due to cyber-attacks, are ongoing risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...