Low-code automation software company Pegasystems (NASDAQ:PEGA) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
Pegasystems beat analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $381.4 million, up 17.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
Is Pegasystems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Pegasystems’s revenue to be flat year on year at $491.5 million, slowing from the 3.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pegasystems has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Pegasystems’s peers in the productivity software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Microsoft delivered year-on-year revenue growth of 16.7%, beating analysts’ expectations by 1.2%, and ServiceNow reported revenues up 20.7%, topping estimates by 1%. Microsoft traded down 10% following the results while ServiceNow was also down 9.9%.
Read our full analysis of Microsoft’s results here and ServiceNow’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. Investors in productivity software stocks have been spared in this environment as share prices are down 18.8% on average over the last month. Pegasystems is down 29.8% during the same time and is heading into earnings with an average analyst price target of $70.91 (compared to the current share price of $40.09).
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