Core Insights - Pegasystems (PEGA) is experiencing accelerated growth in its cloud segment, with Pega Cloud's Annual Contract Value (ACV) increasing by 23% year-over-year to $701 million in Q1 2025, driven by demand for AI-powered, cloud-native solutions [1][3] - The company's cloud revenues rose 15% year-over-year to $151.1 million, highlighting the strength of its recurring revenue model [1][9] - Pegasystems aims to grow Cloud ACV by 20% or more, supported by successful cross-selling, upselling, and new client acquisitions [3][9] Cloud Momentum - There is a clear shift among enterprises towards scalable and intelligent automation, with PEGA's AI-infused platforms simplifying digital transformation and enhancing client retention [2] - The increase in ACV indicates deeper customer engagement and more durable multi-year contracts as workloads transition from legacy systems to the cloud [2] Competitive Landscape - Salesforce (CRM) is a strong competitor in cloud-native CRM and low-code workflows, leveraging its extensive integrations and partnerships to enhance its market position [5] - Oracle (ORCL) competes with PEGA in process automation, excelling in infrastructure and large-scale deployments, while PEGA stands out in BPM usability and AI-driven decision-making [6] Stock Performance and Valuation - Pegasystems shares have gained 16% year-to-date, outperforming the broader Zacks Computer and Technology sector, which returned 8.2%, and the Computer-Software industry, which rose 17% [7][9] - The Zacks Consensus Estimate for PEGA's earnings is $1.88 per share for 2025, reflecting a year-over-year growth of 24.5% [11]

Core Insights - Cognizant is expanding its collaboration with Pegasystems to enhance its modernization services with Pega Blueprint, aiming to facilitate cloud transformations for enterprises [1][4] - The partnership focuses on addressing the challenges faced by enterprises using legacy systems, which incur significant operational and hidden costs [2][4] - The integration of Cognizant's IP with Pega Blueprint will enable rapid development of Minimum Viable Products, enhancing innovation and efficiency in transformation projects [2][5] Group 1 - Cognizant aims to help customers optimize processes and build AI-powered systems on the Pega Infinity platform by leveraging AI-driven legacy code rewrite capabilities [3][4] - The collaboration is positioned to redefine enterprise modernization, moving away from traditional methods to AI-infused transformation journeys [4][5] - Cognizant will showcase Pega Blueprint-driven industry solutions at PegaWorld, highlighting the innovative potential of this collaboration [5] Group 2 - The partnership is expected to bring new levels of efficiency and innovation to technology modernization projects, addressing the challenges of legacy discovery [5] - The collaboration is seen as a response to the urgent need for enterprises to modernize their systems and unlock trapped value [4][5] - The initiative is part of a broader trend where enterprises are increasingly adopting adaptive, AI-native systems for improved customer experience and growth [4]