Can Pegasystems (PEGA) Moody’s-Powered KYC Upgrade Deepen Its Competitive Moat In Financial Workflows?

• Pegasystems Inc. recently announced a collaboration with Moody’s Corporation, allowing Pega Client Lifecycle Management™ users to access Moody’s real-time entity verification data directly within their CLM and KYC workflows across more than 200 countries.
• This tie-up effectively plugs Moody’s database of over 600 million companies into Pega’s AI-powered onboarding and compliance engine, aiming to cut manual data entry errors and speed up client onboarding for global financial institutions.
• Next, we’ll examine how integrating Moody’s real-time KYC data into Pega’s AI-driven workflows could reshape Pegasystems’ existing investment narrative.

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Pegasystems Investment Narrative Recap

To own Pegasystems, you need to believe in its ability to turn AI powered, workflow driven software into durable, recurring cloud revenue, despite uneven term license patterns and macro uncertainty. The Moody’s collaboration strengthens Pega’s CLM and KYC value proposition, but does not fundamentally change the near term focus on sustaining ACV growth and managing revenue volatility risk.

Recent quarterly results, with higher revenue and a move to solid profitability in 2025, matter most in framing this Moody’s news. Stronger earnings and ongoing buybacks give Pega more flexibility to invest in AI powered offerings like CLM and KYC, while the Moody’s integration speaks directly to the thesis that AI and agentic workflows can deepen adoption and support more stable cloud driven revenue.

Yet against this stronger product story, investors should still be watching the risk of volatile term license revenue and how it could affect...

Read the full narrative on Pegasystems (it's free!)

Pegasystems' narrative projects $1.9 billion revenue and $292.2 million earnings by 2028. This requires 4.2% yearly revenue growth and about a $72 million earnings increase from $220.2 million today.

Uncover how Pegasystems' forecasts yield a $73.09 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span a wide range, from US$26.03 to US$78.00 per share. When you compare that spread with the focus on AI driven workflows and cloud revenue stability, it underlines how differently investors can weigh the same catalysts and risks, and why it can be useful to explore several viewpoints before forming your own.

Explore 6 other fair value estimates on Pegasystems - why the stock might be worth less than half the current price!

Build Your Own Pegasystems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Pegasystems research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Pegasystems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pegasystems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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