Pegasystems Future Growth

Future criteria checks 2/6

Pegasystems is forecast to grow earnings and revenue by 7.7% and 8.1% per annum respectively. EPS is expected to grow by 8.1% per annum. Return on equity is forecast to be 34% in 3 years.

Key information

7.7%

Earnings growth rate

8.1%

EPS growth rate

Software earnings growth	15.6%
Revenue growth rate	8.1%
Future return on equity	34.0%
Analyst coverage	Good
Last updated	02 May 2024

Recent future growth updates

Recent updates

Improved Revenues Required Before Pegasystems Inc. (NASDAQ:PEGA) Shares Find Their Feet

Jan 26

Are Investors Undervaluing Pegasystems Inc. (NASDAQ:PEGA) By 48%?

Dec 30

Pegasystems (NASDAQ:PEGA) Could Be At Risk Of Shrinking As A Company

Nov 14

Is Pegasystems (NASDAQ:PEGA) A Risky Investment?

Oct 15

Pegasystems (NASDAQ:PEGA) Is Making Moderate Use Of Debt

Jul 17

An Intrinsic Calculation For Pegasystems Inc. (NASDAQ:PEGA) Suggests It's 26% Undervalued

Jun 20

Is Now An Opportune Moment To Examine Pegasystems Inc. (NASDAQ:PEGA)?

May 29

We Think Pegasystems (NASDAQ:PEGA) Has A Fair Chunk Of Debt

Apr 17

Is There An Opportunity With Pegasystems Inc.'s (NASDAQ:PEGA) 49% Undervaluation?

Mar 22

Pegasystems declares $0.03 dividend

Sep 16

Pegasystems: Rapidly Souring

Aug 22

Pegasystems Non-GAAP EPS of -$0.38 misses by $0.43, revenue of $274.33M misses by $63.98M

Jul 27

Does Pegasystems (NASDAQ:PEGA) Have A Healthy Balance Sheet?

Jul 25

Earnings and Revenue Growth Forecasts

NasdaqGS:PEGA - Analysts future estimates and past financials data (USD Millions)
Date	Revenue	Earnings	Free Cash Flow	Cash from Op	Avg. No. Analysts
12/31/2026	1,756	-274	472	-78	6
12/31/2025	1,603	165	411	386	13
12/31/2024	1,488	105	345	353	13
3/31/2024	1,437	76	324	330	N/A
12/31/2023	1,433	68	201	218	N/A
9/30/2023	1,355	-40	146	174	N/A
6/30/2023	1,291	-126	104	141	N/A
3/31/2023	1,267	-366	35	75	N/A
12/31/2022	1,318	-346	-13	22	N/A
9/30/2022	1,238	-417	5	31	N/A
6/30/2022	1,223	-380	-4	15	N/A
3/31/2022	1,274	-57	17	33	N/A
12/31/2021	1,212	-63	29	39	N/A
9/30/2021	1,194	-22	10	20	N/A
6/30/2021	1,164	15	30	40	N/A
3/31/2021	1,065	-43	25	39	N/A
12/31/2020	1,018	-61	-26	-1	N/A
9/30/2020	995	-64	-81	-55	N/A
6/30/2020	986	-76	-96	-71	N/A
3/31/2020	964	-87	-104	-83	N/A
12/31/2019	911	-90	-53	-42	N/A
9/30/2019	891	-75	13	24	N/A
6/30/2019	878	-52	26	37	N/A
3/31/2019	869	-30	57	71	N/A
12/31/2018	892	11	92	104	N/A
9/30/2018	890	35	90	111	N/A
6/30/2018	878	44	128	148	N/A
3/31/2018	867	58	168	181	N/A
12/31/2017	888	99	N/A	158	N/A
9/30/2017	833	67	N/A	133	N/A
6/30/2017	825	69	N/A	114	N/A
3/31/2017	828	70	N/A	62	N/A
12/31/2016	762	45	N/A	40	N/A
9/30/2016	755	39	N/A	33	N/A
6/30/2016	735	42	N/A	40	N/A
3/31/2016	708	41	N/A	50	N/A
12/31/2015	683	36	N/A	68	N/A
9/30/2015	647	35	N/A	57	N/A
6/30/2015	622	31	N/A	65	N/A
3/31/2015	603	29	N/A	55	N/A
12/31/2014	590	33	N/A	103	N/A
9/30/2014	574	29	N/A	96	N/A
6/30/2014	559	36	N/A	90	N/A
3/31/2014	533	39	N/A	88	N/A
12/31/2013	509	38	N/A	81	N/A
9/30/2013	499	43	N/A	98	N/A
6/30/2013	479	34	N/A	95	N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEGA's forecast earnings growth (7.7% per year) is above the savings rate (2.4%).

Earnings vs Market: PEGA's earnings (7.7% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: PEGA's earnings are forecast to grow, but not significantly.

Revenue vs Market: PEGA's revenue (8.1% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: PEGA's revenue (8.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: PEGA's Return on Equity is forecast to be high in 3 years time (34%)

Pegasystems Future Growth

Future criteria checks 2/6

Key information

Recent future growth updates

Consensus EPS estimates fall by 22%

Price target increased by 15% to US$62.26

Pegasystems Inc. Provides Earnings Guidance for the Year 2024

Price target decreased by 8.1% to US$50.83

Consensus EPS estimates upgraded to US$0.51 loss

Price target increased by 7.1% to US$56.46

Recent updates

We Think Pegasystems (NASDAQ:PEGA) Can Manage Its Debt With Ease

Pegasystems: Positive Cloud Uptake, But With Potential Macro Disruptions

Independent Director recently sold US$609k worth of stock

Independent Director notifies of intention to sell stock

Consensus EPS estimates fall by 22%

Pegasystems Inc., Annual General Meeting, Jun 18, 2024

There's Reason For Concern Over Pegasystems Inc.'s (NASDAQ:PEGA) Price

First quarter 2024 earnings: EPS and revenues miss analyst expectations

New major risk - Revenue and earnings growth

Pega Infinity ‘24 Helps Enterprises Harness Powerful GenAI Solutions to Achieve Self-Optimization

Pegasystems Inc. to Report Q1, 2024 Results on Apr 24, 2024

Upcoming dividend of US$0.03 per share

Fourth quarter dividend of US$0.03 announced

Pegasystems Inc. Announces Quarterly Cash Dividend for Second Quarter of 2024, Payable on April 15, 2024

COO & CFO exercised options and sold US$376k worth of stock

Why Pegasystems Inc. (NASDAQ:PEGA) Could Be Worth Watching

COO & CFO notifies of intention to sell stock

Pegasystems: Expect Continued Strong Performance Ahead

COO & CFO recently sold US$416k worth of stock

Investor sentiment improves as stock rises 24%

We Think Pegasystems' (NASDAQ:PEGA) Robust Earnings Are Conservative

Pegasystems Shows Operating Leverage Success

COO & CFO notifies of intention to sell stock

The Return Trends At Pegasystems (NASDAQ:PEGA) Look Promising

Price target increased by 15% to US$62.26

Full year 2023 earnings: EPS and revenues exceed analyst expectations

Pegasystems Inc. Provides Earnings Guidance for the Year 2024

Pegasystems Inc. Introduces Pega GenAI Blueprint to Automate Enterprise-Grade Workflow App Designs

Pegasystems Inc. to Report Q4, 2023 Results on Feb 14, 2024

Chief of Clients & Markets exercised options and sold US$401k worth of stock

Improved Revenues Required Before Pegasystems Inc. (NASDAQ:PEGA) Shares Find Their Feet

Are Investors Undervaluing Pegasystems Inc. (NASDAQ:PEGA) By 48%?

Upcoming dividend of US$0.03 per share at 0.2% yield

New minor risk - Insider selling

Pegasystems (NASDAQ:PEGA) Could Be At Risk Of Shrinking As A Company

Price target decreased by 8.1% to US$50.83

Third quarter 2023 earnings: EPS and revenues exceed analyst expectations

Is Pegasystems (NASDAQ:PEGA) A Risky Investment?

Consensus EPS estimates upgraded to US$0.51 loss

Pegasystems Inc. to Report Q3, 2023 Results on Oct 25, 2023

Pega Infuses AI into Pega Smart Dispute to Streamline Chargeback Processes

Upcoming dividend of US$0.03 per share at 0.3% yield

Pegasystems Inc. Announces Quarterly Dividend, Payable on October 16, 2023

Pegasystems Inc. Announces the General Availability of Pega Infinity™ '23

Price target increased by 7.1% to US$56.46

New minor risk - Profitability

Second quarter 2023 earnings: EPS and revenues miss analyst expectations

Pegasystems (NASDAQ:PEGA) Is Making Moderate Use Of Debt

Pegasystems Inc. to Report Q2, 2023 Results on Jul 26, 2023

An Intrinsic Calculation For Pegasystems Inc. (NASDAQ:PEGA) Suggests It's 26% Undervalued

Founder notifies of intention to sell stock

Pega Announces Quarterly Cash Dividend for Third Quarter of 2023, Payable on July 17, 2023

Independent Director notifies of intention to sell stock

Is Now An Opportune Moment To Examine Pegasystems Inc. (NASDAQ:PEGA)?

Chief Product Officer recently sold US$74k worth of stock

Pega Announces Pega GenAI to Infuse Generative Ai Capabilities in Pega Infinity '23

Pega Launches Pega Process Mining with Generative AI-Ready APIs to Enable Continuous Workflow Optimization

First quarter 2023 earnings: EPS and revenues miss analyst expectations

We Think Pegasystems (NASDAQ:PEGA) Has A Fair Chunk Of Debt

Upcoming dividend of US$0.03 per share at 0.3% yield

Is There An Opportunity With Pegasystems Inc.'s (NASDAQ:PEGA) 49% Undervaluation?

Chief of Clients & Markets notifies of intention to sell stock

Chief Product Officer recently sold US$79k worth of stock

Full year 2022 earnings: EPS and revenues exceed analyst expectations

Price target increased by 16% to US$47.18

Pegasystems Inc. to Report Q4, 2022 Results on Feb 15, 2023

Upcoming dividend of US$0.03 per share

Pegasystems Inc. Announces Quarterly Cash Dividend for First Quarter of 2023, Payable on January 17, 2023

Founder exercised options and sold US$74k worth of stock