Pegasystems Q4 Earnings Call Highlights

5 days ago 4

MarketBeat

Wed, February 11, 2026 astatine 8:52 AM CST 7 min read

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Pegasystems closed 2025 with stronger-than-expected results: full ACV roseate 17% (14% cc), Pega Cloud ACV accelerated 33% (28% cc), and escaped currency travel jumped 45% to $491 million, driven by its subscription transition.
The institution surpassed a contractually committed backlog milestone of implicit $2 billion, repaid $468 cardinal of debt, repurchased $498 cardinal of shares, and had a anterior $2 billion trade-secret verdict overturned by the Virginia Supreme Court.
Looking to 2026, absorption guides to astir $2 billion successful gross (~15% growth), 15% ACV maturation (constant currency) and $575 cardinal successful escaped currency flow, portion betting its Blueprint predictable-AI workflow volition accelerate sales, retention and Pega Cloud gross (expected >30%).
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Pegasystems (NASDAQ:PEGA) executives highlighted what they described arsenic a beardown decorativeness to 2025 and outlined expectations for continued maturation successful 2026, with a peculiar absorption connected accelerating unreality adoption and the expanding relation of its AI-powered Blueprint merchandise successful sales, delivery, and bequest modernization initiatives.

Chief Operating Officer and CFO Ken Stillwell said full yearly declaration worth (ACV) roseate 17% year-over-year arsenic reported and 14% successful changeless currency, exceeding the company’s guidance. Pega Cloud ACV was a superior driver, expanding 33% arsenic reported and 28% successful changeless currency, which Stillwell called a “pretty important acceleration” compared with the anterior year’s maturation rates.

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Stillwell attributed the year’s show to 3 main factors: expanded usage of Blueprint arsenic an “experiential income process,” what helium described arsenic the strongest planetary income execution the institution has had, and rising lawsuit and spouse request for “predictable AI agents integrated into proven endeavor workflows.” He added that nett caller ACV accrued 37% year-over-year successful changeless currency.

On profitability and currency generation, Stillwell said escaped currency travel accrued 45% year-over-year to $491 million, exceeding guidance by $51 million. He said the betterment was driven by ACV maturation and reflected the spot of Pegasystems’ subscription exemplary pursuing its subscription transition.

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