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Pegasystems (PEGA) Q3 2025 Earnings
Reported Oct 21, 2025 at 4:07 PM ET · SEC Source
Q3 25 EPS
$0.30
BEAT +50.75%
Est. $0.20
Q3 25 Revenue
$381.4M
BEAT +8.69%
Est. $350.9M
vs S&P Since Q3 25
-63.4%
TRAILING MARKET
PEGA -51.5% vs S&P +11.9%
Market Reaction
Did PEGA Beat Earnings? Q3 2025 Results
Pegasystems turned in a standout third quarter for fiscal 2025, posting non-GAAP earnings of $0.30 per share against a consensus estimate of $0.20, a beat of 50.75%, while revenue of $381.35 million topped expectations by 8.69% and grew 17.3% year ov… Read more Pegasystems turned in a standout third quarter for fiscal 2025, posting non-GAAP earnings of $0.30 per share against a consensus estimate of $0.20, a beat of 50.75%, while revenue of $381.35 million topped expectations by 8.69% and grew 17.3% year over year. The primary engine behind the outperformance was accelerating cloud adoption, with Pega Cloud revenue climbing 28% to $184.55 million and now representing 48% of total revenue, up from 44% a year ago. The company also swung to GAAP profitability, reporting net income of $43.36 million compared to a net loss of $14.39 million in Q3 2024, aided in part by a $19.27 million tax benefit. Annual Contract Value reached $1.56 billion, growing 14% year over year, while total backlog rose 19% to $1.75 billion. Analysts tracking the company's agentic AI investments have noted that tools like Pega Blueprint are increasingly resonating with enterprise customers, and management signaled continued confidence that its AI-driven strategy is broadening its addressable market and accelerating cloud pipeline momentum heading into the next quarter.
Key Takeaways
- • Pega Cloud ACV grew 27% year over year, accelerating from prior quarters
- • Subscription revenue grew 20% to 85% of total revenue
- • AI strategy and Pega Blueprint adoption driving new client commitments
- • Strong operating leverage with GAAP operating income of $14.5M vs. loss of $11.7M a year ago
PEGA YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
PEGA Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our differentiated AI strategy continues to resonate deeply with clients, prospects, and partners, unlocking new levels of speed, predictability, and scale in enterprise applications.”
— Alan Trefler, Q3 2025 Earnings Press Release
PEGA Earnings Trends
PEGA vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PEGA EPS Trend
Earnings per share: estimate vs actual
PEGA Revenue Trend
Quarterly revenue: estimate vs actual
PEGA Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.69 | $0.46 | -33.66% | $430.0M | -7.96% |
| Q4 25 BEAT FY | $0.73 | $0.76 | +3.51% | $504.3M | +2.17% |
| FY Full Year | — | $2.10 | — | $1.75B | — |
| Q3 25 BEAT | $0.20 | $0.30 | +50.75% | $381.4M | +8.69% |
| Q2 25 BEAT | $0.25 | $0.28 | +12.95% | $384.5M | +4.99% |