Pegasystems Inc (NASDAQ: PEGA), an enterprise software company, saw its shares close at $43.04, up intraday from previous levels, representing a notable uptick in trading activity at today’s market close in US markets. The stock price reflected an intraday percentage increase from yesterday’s close. Pegasystems shares traded on NASDAQ where the price move was recorded at close today. As of today, Pegasystems’ market capitalization stands around $7.3 billion.
Latest Quarterly Results
For the fiscal fourth quarter ended December 31, 2025, Pegasystems reported consolidated revenue of $504.3 million, representing approximately 3 % year-over-year growth compared with the same period in 2024. Net income on a GAAP basis for the quarter was $234.6 million, with diluted GAAP earnings per share of $1.27. On a non-GAAP basis, earnings were $0.76 per share.
Full-Year Results Context
In the full year ended December 31, 2025, Pegasystems reported total revenue of $1.75 billion, up 17 % compared with 2024, and GAAP net income of $393.4 million, compared with the prior year. Non-GAAP net income for the full year was $385.4 million.
Business & Operations Update
In its earnings release, Pegasystems reported that annual contract value (ACV) grew 17 % year-over-year, with Pega Cloud ACV up 33 % over the same period. Cash flow from operations and free cash flow grew by 45 % year-over-year in the quarter, and the company increased its share repurchase authorization by $1 billion.
M&A or Strategic Moves
In 2025, Pegasystems completed the acquisition of Adopteq, a software services provider, as part of broadening its service and implementation capabilities. The company also entered into partnerships to enhance customer lifecycle management and know-your-customer (KYC) processes with financial services clients.
Equity Analyst Commentary
Equity research reports noted that the company’s Q4 revenue and earnings results exceeded analyst expectations, with certain institutional analysts attributing the quarterly outperformance to recurring revenue strength and cloud subscription growth.
Guidance & Outlook
Pegasystems provided full-year 2026 guidance of approximately $2 billion in revenue and $2.75 in non-GAAP diluted EPS, with anticipated 15 % ACV growth and improved cash flow generation. The company emphasized monitoring ACV expansion and recurring revenue trends in the coming quarters.
Performance Summary
Pegasystems’ stock recorded an upward move today, following the release of Q4 2025 revenue and earnings that showed year-over-year increases. Quarterly and annual figures indicate revenue growth and profit expansion compared with prior periods with key operational signals tied to cloud subscriptions and contract value growth.