Pegasystems Inc. reported second-quarter 2025 earnings that exceeded analyst estimates, with adjusted earnings per share (EPS) of $0.28 compared to the expected $0.23, and revenue of $384.5 million versus the forecasted $362.5 million, reflecting a 9% year-over-year increase. The company’s adjusted net income reached $50.2 million, outperforming the estimated $42.4 million. Pegasystems highlighted strong growth in its cloud and subscription business, with annual contract value (ACV) rising 16% year-over-year to $1.51 billion, including a 28% increase in Pega Cloud ACV to $761 million. The firm also noted that its AI-driven Blueprint strategy contributed to ACV growth and a cash flow expansion exceeding 30%. Manhattan Associates Inc. also reported better-than-expected second-quarter results, with consolidated revenue of $272.4 million, up 3% from $265.3 million in the same period last year, surpassing estimates of $263.64 million. Adjusted EPS was $1.31, beating the $1.13 consensus and marking an 11% year-over-year increase. Manhattan’s net income reached $56.8 million, supported by a 22% growth in cloud subscription revenue to $100.4 million, although license revenue declined by 52% to $1.5 million. The company’s remaining performance obligations (RPO) exceeded $2 billion, driven by the cloud revenue expansion. Both companies demonstrated robust cloud business growth and improved profitability in the quarter ending June 2025.