The rise of artificial intelligence has proven to be a great disruptor across the tech world, but particularly in the realm of enterprise software, as companies invest to deploy agents, drive innovation and efficiencies, improve decision-making, and automate operations.
Global enterprises are expected to invest more than $300B on AI solutions in 2025, according to IDC data. That figure is expected to swell to more than $630B by 2028.
As an array of enterprise software companies compete to offer the best solutions, the Massachusetts-based Pegasystems (NASDAQ:PEGA) believes they have “cracked the code.”
“Historically, when you were going to implement Pega, it required very detailed documentation to do that,” said Pegasystems COO and CFO Ken Stillwell in an interview with Seeking Alpha. “It requires a lot of collaboration and operational walkthroughs. It is very time-consuming. When you are done with all that, then you start to build. Then, it takes some time to deploy to millions of consumers or tens of thousands of employees.”
What used to take six months to a year can be reduced to a fraction of that timeframe when using AI.
“When AI came out, we developed the concept of using AI to create a design agent on the front end to help with this process,” Stillwell added. “We call that the Pega Blueprint. We haven’t seen anybody else think about it that way. They are thinking about the operations, not the implementation. The Blueprint is how we have become much more relevant, and it is helping us accelerate our growth. Companies need to modernize, and we can help.”
The generative-AI Blueprint has not only allowed Pega to compete with the big names of enterprise software, such as Salesforce (NYSE:CRM), ServiceNow (NYSE:NOW) and Oracle (ORCL), but also to expand its total addressable market. AI also speeds up and lowers the cost of implementing new enterprise software systems, which makes it more doable for small and medium-sized businesses.
“Our clients are very large organizations,” Stillwell said. “They are typically toward the higher end of all verticals. We think Blueprint will help us go downmarket some.”
“Nobody is offering anything like Blueprint,” added Sean Audet, Pega’s director of corporate communications for North America. “We believe we have cracked the code on Blueprint and enterprise.”
Pega GenAI Blueprint is a collaborative design tool that helps enterprises quickly and easily build the foundations of enterprise applications. It was first launched in February 2024, and the results of its success are readily revealed through the company’s financial results. During fiscal year 2023, Pega’s annual revenue totaled $1.43B with an EPS of $1.24. During fiscal 2024, revenue totaled $1.5B with an EPS of $1.51. For fiscal 2025, Pega is on pace to reach $1.74B in revenue with an annual EPS of $2.09.
The company has beaten market estimates for four consecutive quarters. Its stock value has leaped 41% year to date. In comparison, competitor Salesforce’s shares have declined 23% over the same time frame. ServiceNow has declined 10%, SAP SE (NYSE:SAP) has increased 11%, Atlassian (NASDAQ:TEAM) has plunged 32%, while monday.com (MNDY) has dropped 14%. The outlier is Oracle, which has increased 71%, but much of that is due to its cloud computing operation, which has inked massive deals with AI companies, such as its $300B deal with OpenAI (OPENAI).
Pega shares have also outperformed the software sector as a whole, as the iShares Expanded Tech-Software Sector ETF (BATS:IGV) has increased 16% in 2025.
“We have accelerated our growth and our free cash flow over the past few years,” Stillwell said. “We are running a really good business right now.”