Pegasystems (PEGA +0.97%) stock managed to close out this past week's trading. The company's share price roared 24.2% higher compared to where it stood at the end of the previous week's market close.
Pegasystems valuation bounded higher after the company published better-than-expected quarterly results and outlined artificial intelligence (AI) growth initiatives. The stock also got a boost from a bullish backdrop for the broader market, with the S&P 500 climbing 1.9% over the stretch and the Nasdaq Composite surging 2.3% over the past week.
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Pegasystems stock rallies on quarterly beats
Pegasystems released its third-quarter results before the market opened on Oct. 22 and handily surpassed the market's expectations. While the average analyst estimate had called for the business to post per-share earnings of non-GAAP (adjusted) $0.30 on sales of approximately $352 million. The company's revenue unexpectedly surged more than 17% higher compared to the prior-year period, and adjusted net income surged 59% higher year over year. Annual contract value for the company's Pega Cloud offering saw strong growth, and management outlined initiatives that could help sustain strong momentum.
NASDAQ: PEGA
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What's next for Pegasystems?
Pegasystems is aiming to continue strengthening its positioning in tools to help enterprises create large language models (LLMs) for artificial intelligence. The low-code specialist thinks that its Pega Blueprint suite has game-changing potential and will help clients shorten the time from application design to production. Along with this shift, the company thinks that Pega Blueprint could significantly shorten sales cycles and allow it to continue posting strong sales growth.
While AI tools appear to be powering a turnaround for Pegasystems, the stock is still down roughly 1% over the last five years despite the S&P 500 nearly doubling across the stretch.
