Pegasystems: Application Modernization with AI & Cloud Services Are Upping The Ante!

Pegasystems’ third-quarter financial results from 2025 highlight both strengths and challenges for the company. The reported results underline Pegasystems’ ability to execute its cloud strategy and leverage artificial intelligence innovations, which have been key growth drivers. The company’s focus on AI-driven process automation and orchestration platforms remains a cornerstone of its strategy, which is increasingly appealing to financial services and other regulated industries due to its approach of ensuring predictable workflows. One of the highlights of Pegasystems’ performance is the strong growth in annual contract value (ACV), particularly in Pega Cloud, which grew 27% year-over-year. The cloud segment continues to demonstrate the scalability of Pegasystems’ platform and market demand for cloud-native solutions, driven by more clients migrating to Pega Cloud. Pegasystems added over $147 million in net new ACV in constant currency through the first nine months, surpassing the total net new ACV for the entire previous year.