Could Scalable AI in Pega Infinity ’25 Reshape Pegasystems’ (PEGA) Role in Enterprise Transformation?

• Pegasystems recently announced the general availability of Pega Infinity '25, introducing an enterprise transformation platform with AI-powered automation, enhanced process mining, and robust modernization capabilities now accessible to existing Pega Cloud customers.
• An interesting insight is that Pega Infinity '25 highlights explainable, compliant AI agent deployment at scale, directly addressing widespread industry challenges with enterprise AI implementation success.
• We'll explore how Pega's focus on trustworthy, scalable AI automation with Infinity '25 could shift its investment narrative going forward.

The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

Pegasystems Investment Narrative Recap

To be a Pegasystems shareholder today, you need to believe that the company's bold focus on AI-driven enterprise transformation can sustain revenue growth even as AI markets remain competitive and client digital adoption varies. The recent Pega Infinity '25 launch introduces significant new AI automation and process modernization capabilities, but it does not materially shift the current short-term catalyst: driving cloud adoption and recurring revenue growth. The largest risk remains the unpredictable revenue volatility from term license accounting and macroeconomic uncertainties in key markets, which this news event does not directly address.

Among recent announcements, the September partnership with AWS stands out as highly relevant. This collaboration aims to strengthen cloud-based product offerings and leverages AWS's generative AI, directly supporting the catalyst of increasing enterprise cloud adoption and building on the advanced features unveiled in Pega Infinity '25.

Yet while the tech is advancing, investors should pay close attention to potential revenue swings from complex accounting principles and the implications for earnings stability...

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 a $72 million increase in earnings from $220.2 million.

Uncover how Pegasystems' forecasts yield a $64.73 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members published five fair value estimates for Pegasystems, ranging from US$25.01 to US$78 per share. With this spread of opinion, especially as revenue volatility remains a risk, you are encouraged to compare multiple viewpoints on the company’s prospects.

Explore 5 other fair value estimates on Pegasystems - why the stock might be worth as much as 41% more than 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 2 key rewards and 1 important warning sign 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.

Interested In Other Possibilities?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Find companies with promising cash flow potential yet trading below their fair value.
• These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com