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Pegasystems

Pegasystems (PEGA) Q4 2025 Earnings

Reported Feb 10, 2026 at 4:11 PM ET · SEC Source

Q4 25 EPS

$0.76

BEAT +3.51%

Est. $0.73

Q4 25 Revenue

$504.3M

BEAT +2.17%

Est. $493.6M

vs S&P Since Q4 25

-30.9%

TRAILING MARKET

PEGA -23.1% vs S&P +7.8%

Full Year 2025 Results

FY 25 EPS

$2.10

FY 25 Revenue

$1.75B

Market Reaction

Did PEGA Beat Earnings? Q4 2025 Results

Pegasystems closed out fiscal 2025 on a solid footing, posting fourth-quarter revenue of $504.32 million, up 2.8% year over year and ahead of the $493.63 million consensus estimate by 2.17%, while non-GAAP diluted EPS of $0.76 beat the $0.73 analyst … Read more Pegasystems closed out fiscal 2025 on a solid footing, posting fourth-quarter revenue of $504.32 million, up 2.8% year over year and ahead of the $493.63 million consensus estimate by 2.17%, while non-GAAP diluted EPS of $0.76 beat the $0.73 analyst forecast by 3.51%. The clearest driver of the quarter's strength was the company's accelerating cloud transition, with Pega Cloud revenue surging 29% year over year to $193.49 million and cloud Annual Contract Value growing 33% to $866.61 million, helping lift total ACV to $1.61 billion. A Barclays upgrade citing cloud and AI momentum, along with the removal of a major legal overhang, added further investor confidence around the print. GAAP net income nearly doubled, though that figure was substantially inflated by a $175 million non-cash tax benefit. Looking ahead, management guided 2026 revenue to $2.00 billion with 15% ACV growth and non-GAAP diluted EPS of $2.75, while a newly authorized $1.00 billion share repurchase program underscored confidence in the company's cash generation trajectory.

Key Takeaways

  • • Pega Cloud ACV grew 33% year over year (28% in constant currency)
  • • Total ACV grew 17% year over year to $1.608 billion
  • • Subscription services revenue grew 18% year over year in Q4
  • • Cash flow from operations and free cash flow grew 45% year over year
  • • Non-cash tax benefit of $175 million from release of deferred tax asset valuation allowances
24/7 Wall St

PEGA YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

PEGA Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“2025 was an extraordinary year of progress and execution. We're entering a transformative era with bold ideas and compelling innovation. Our approach positions us to lead the industry, deliver extraordinary value to clients, and enable clients to overcome legacy system limitations.”

— Alan Trefler, Q4 2025 Earnings Press Release

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