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Upturn AI SWOT - About
PEGA 
Pegasystems Inc (PEGA)
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Upturn Advisory Summary
10/17/2025: PEGA (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
Number of Analysts
14 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $65.09
1 Year Target Price $65.09
| 7 | Strong Buy |
| 3 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 42.96% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 10/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 9.13B USD | Price to earnings Ratio 43.75 | 1Y Target Price 65.09 |
Price to earnings Ratio 43.75 | 1Y Target Price 65.09 | ||
Volume (30-day avg) 14 | Beta 1.09 | 52 Weeks Range 29.80 - 60.97 | Updated Date 10/19/2025 |
52 Weeks Range 29.80 - 60.97 | Updated Date 10/19/2025 | ||
Dividends yield (FY) 0.11% | Basic EPS (TTM) 1.22 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-10-22 | When - | Estimate 0.2091 | Actual - |
Profitability
Profit Margin 13.14% | Operating Margin (TTM) 4.48% |
Management Effectiveness
Return on Assets (TTM) 12.2% | Return on Equity (TTM) 41.55% |
Valuation
Trailing PE 43.75 | Forward PE 27.32 | Enterprise Value 9511430464 | Price to Sales(TTM) 5.45 |
Enterprise Value 9511430464 | Price to Sales(TTM) 5.45 | ||
Enterprise Value to Revenue 5.67 | Enterprise Value to EBITDA 28.87 | Shares Outstanding 171080665 | Shares Floating 91952436 |
Shares Outstanding 171080665 | Shares Floating 91952436 | ||
Percent Insiders 46.27 | Percent Institutions 58.97 |
Upturn AI SWOT
Pegasystems Inc
Company Overview
History and Background
Pegasystems Inc. (PEGA) was founded in 1983 by Alan Trefler. Originally focused on business rule management systems (BRMS), it has evolved into a leading provider of customer relationship management (CRM) and digital process automation (DPA) software. Significant milestones include its IPO in 1996 and its continued expansion into AI-powered decisioning.
Core Business Areas
- CRM: Pegasystems' CRM offerings help organizations manage customer interactions across various channels, personalize experiences, and improve customer satisfaction.
- Digital Process Automation (DPA): Pega's DPA platform enables businesses to automate complex workflows, streamline operations, and improve efficiency.
- Artificial Intelligence (AI): Pega uses Artificial Intelligence to make real-time decisions for customers and businesses, driving intelligent automation in areas such as case management and customer service.
Leadership and Structure
Alan Trefler serves as the CEO. The organizational structure is a matrix organization divided into various departments (engineering, marketing, sales, finance, and service delivery).
Top Products and Market Share
Key Offerings
- Market Share: Estimates fluctuate, making precise reporting variable. Pega is amongst the top vendors.
- Pega Infinity: Pega Infinity is an integrated suite of CRM, DPA, and AI capabilities. It helps organizations to orchestrate customer journeys, automate processes, and personalize interactions. Competitors include Salesforce, Microsoft Dynamics 365, and ServiceNow. Precise market share data is fluctuating but they are in top 10.
- Market Share: Estimates fluctuate, making precise reporting variable. Pega is amongst the top vendors.
- Pega Platform: A low-code platform for building and deploying business applications. Competitors include Appian, Outsystems and Microsoft Power Platform. Its market share contribution to Pega revenue is significant, but it is not broken out in company reports.
Market Dynamics
Industry Overview
The CRM and DPA market is characterized by rapid growth driven by the need for digital transformation and improved customer experiences. AI adoption is accelerating. The overall trend is to move to cloud based solution.
Positioning
Pegasystems is positioned as a leader in the market, specializing in complex, enterprise-grade solutions. It distinguishes itself through its AI-powered decisioning capabilities and its focus on outcome-driven solutions.
Total Addressable Market (TAM)
The TAM for CRM and DPA is projected to be hundreds of billions USD, with continued growth expected. Pega is targeting specific niches within this broader market, focusing on industries with complex processes.
Upturn SWOT Analysis
Strengths
- Strong technology platform
- Focus on AI-powered decisioning
- Established presence in regulated industries
- Comprehensive suite of CRM and DPA capabilities
- Strong customer retention rates
Weaknesses
- Higher price compared to competitors
- Implementation complexity
- Steep learning curve for users
- Smaller market share than some competitors
- Perception of being a more 'legacy' platform
Opportunities
- Expanding market for AI-powered solutions
- Growing demand for cloud-based CRM and DPA
- Strategic partnerships and acquisitions
- Penetration into new industries
- Increase in the use of low-code applications
Threats
- Intense competition from larger players
- Rapid technological changes
- Economic downturns impacting IT spending
- Security and privacy concerns
- Emergence of disruptive technologies
Competitors and Market Share
Key Competitors
- CRM (Salesforce)
- CRM (MSFT)
- Service Automation (NOW)
Competitive Landscape
Pegasystems competes with a mix of large and niche players. It differentiates itself through its AI-powered decisioning capabilities and its focus on complex, enterprise-grade solutions, but faces competition from companies with broader product portfolios and larger market share.
Major Acquisitions
Qwamplify
- Year: 2016
- Acquisition Price (USD millions): 0
- Strategic Rationale: Expanding Pega's capabilities in marketing solutions.
Growth Trajectory and Initiatives
Historical Growth: Pegasystems has experienced consistent growth in revenue over the past years, driven by increasing demand for its CRM and DPA solutions.
Future Projections: Analyst estimates predict continued revenue growth in the coming years, driven by the expansion of the AI-powered decisioning platform. Profitability is projected to improve.
Recent Initiatives: Recent initiatives include focusing on cloud migrations, enhancing its AI capabilities, and expanding its partner ecosystem.
Summary
Pegasystems is a solid company with a strong technological foundation, specializing in AI-powered solutions. Despite facing competition from larger players, its strengths in regulated industries and customer retention are promising. The company must continue focusing on cloud migrations and strategic partnerships to achieve sustained growth and improved profitability. Pega's higher price point can sometimes be a hinderance.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings (10-K, 10-Q)
- Company Investor Relations
- Analyst Reports
- Industry Research
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data and analyst estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Pegasystems Inc
Exchange NASDAQ | Headquaters Waltham, MA, United States | ||
IPO Launch date 1996-07-18 | Founder, CEO & Chairman of the Board Mr. Alan Trefler | ||
Sector Technology | Industry Software - Application | Full time employees 5443 | Website https://www.pega.com |
Full time employees 5443 | Website https://www.pega.com | ||
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Waltham, Massachusetts.
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