olivLaw · US equity research
Pegasystems Inc. PEGA
Services-Computer Processing & Data Preparation · SIC 7374 · Vertical: Services-Computer Processing & Data Preparation (SIC 7374)
Pegasystems (PEGA) develops enterprise software for AI-driven decisioning and workflow automation, used by large companies and government agencies. The company is going through a difficult 2026 with slowed ACV growth, so its relevance depends on whether it can capture demand for governed AI solutions.
At the close of 04 Nov 2026, Pegasystems Inc. (PEGA) stock was 34.36 USD (+0.03% on the day), with market capitalisation 5.6 bn USD, P/E 21.3 on diluted EPS of 1.61 USD over the last 12 months, dividend yield 0.35%, beta 1.23, 52-week range 25.99–62.63 USD. Latest reported quarter (Q3 2026): revenue of 393.4 m USD (+3.1% YoY), net income of 14.1 m USD (−67.5% YoY), diluted EPS 0.08 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 46.6
- neutral
- Bollinger (20, 2)
- 33.39 – 36.91
- in the lower half of the band · %B 0.28 · band width 10.0%
- SMA 50 / 200
- 35.32 / 36.81
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.10 / 0.07
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −0.5% | −1.1% | +0.6 pp | — |
| 3 months | +8.0% | −0.5% | +8.5 pp | — |
| 6 months | −5.5% | +4.4% | −9.9 pp | — |
| Year to date | −42.5% | +12.3% | −54.8 pp | — |
| 1 year | −43.7% | +13.5% | −57.3 pp | −24.6% |
| 3 years | +50.8% | +76.4% | −25.6 pp | −23.4% |
| 5 years | −42.8% | +63.7% | −106.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 490.8 m | 475.6 m | 384.5 m | 381.4 m | 504.3 m | 430.0 m | 420.7 m | 393.4 m |
| Cost of revenue | 102.4 m | 102.5 m | 109.6 m | 105.9 m | 103.5 m | 106.8 m | 108.0 m | 103.8 m |
| Gross profit | 388.5 m | 373.2 m | 274.9 m | 275.5 m | 400.9 m | 323.2 m | 312.7 m | 289.5 m |
| Research & development | 76.4 m | 74.3 m | 78.8 m | 78.8 m | 80.9 m | 82.0 m | 84.2 m | 74.3 m |
| Operating income | 143.0 m | 127.0 m | 17.3 m | 14.5 m | 104.4 m | 37.1 m | 16.6 m | 14.9 m |
| Depreciation & amortisation | 4.3 m | 3.1 m | 3.2 m ≈ | 3.1 m ≈ | 4.3 m | 2.9 m | 2.9 m ≈ | 3.5 m ≈ |
| Interest expense | 1.8 m | 1.0 m | 1.0 k | 144.0 k | 113.0 k | 44.0 k | 45.0 k | 64.0 k |
| Pre-tax income | 154.2 m | 126.3 m | 25.2 m | 24.1 m | 105.0 m | 39.7 m | 18.5 m | 17.8 m |
| Income tax | 35.1 m | 40.9 m | -4.8 m | -19.3 m | -129.6 m | 6.9 m | 5.2 m | 3.7 m |
| Net income | 119.1 m | 85.4 m | 30.1 m | 43.4 m | 234.6 m | 32.8 m | 13.3 m | 14.1 m |
| Diluted EPS | 0.58 ≈ | 0.46 | 0.17 | 0.24 | 1.27 ≈ | 0.18 | 0.08 | 0.08 |
| Operating cash flow | 95.2 m | 204.2 m | 86.3 m ≈ | 56.3 m ≈ | 158.4 m | 212.3 m | 86.0 m ≈ | 6.1 m ≈ |
| Capex | 2.8 m | 1.9 m | 2.1 m ≈ | 4.5 m ≈ | 6.0 m | 5.7 m | 4.2 m ≈ | 4.5 m ≈ |
| Dividends paid | 2.6 m | 2.6 m | 2.6 m ≈ | 5.2 m ≈ | 5.1 m | 5.1 m | 5.1 m ≈ | 4.9 m ≈ |
| Share repurchases | 56.8 m | 117.2 m | 134.5 m ≈ | 143.0 m ≈ | 105.0 m | 167.3 m | 200.4 m ≈ | 65.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 15 percentile of its own 20-quarter history (min 16.9, median 41.9, max 436.1; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 891.6 m | 911.4 m | 1.0 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn |
| Revenue YoY | +0.4% | +2.2% | +11.6% | +19.1% | +8.8% | +8.7% | +4.5% | +16.6% |
| Net income | 10.6 m | -90.4 m | -61.4 m | -63.0 m | -345.6 m | 67.8 m | 99.2 m | 393.4 m |
| Net income YoY | −89.2% | −951.8% | unavailable | unavailable | unavailable | unavailable | +46.3% | +296.7% |
| Diluted EPS | 0.13 | -1.14 | -0.76 | -0.77 | -4.22 | 0.37 | 0.55 | 2.13 |
| Diluted EPS YoY | −89.1% | −976.9% | unavailable | unavailable | unavailable | unavailable | +48.6% | +287.3% |
| net % | 1.2% | -9.9% | -6.0% | -5.2% | -26.2% | 4.7% | 6.6% | 22.5% |
| Free cash flow | 92.5 m | -52.8 m | -25.9 m | 28.7 m | -13.0 m | 201.0 m | 338.2 m | 490.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 212.4 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 787.4 m USD
- Total assets
- 1.6 bn USD
- Debt / equity
- unavailable
- Current ratio
- 1.33x
- ROE
- 57.3%
- ROA
- 23.1%
- FCF margin
- 28.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.7 bn | SEC (XBRL)· 10 Feb 2026verified |
| Cost of revenue | 310.9 m | 336.4 m | 368.6 m | 378.5 m | 390.7 m | 421.4 m | SEC (XBRL)· 10 Feb 2026verified |
| Gross profit | 706.6 m | 875.3 m | 949.2 m | 1.1 bn | 1.1 bn | 1.3 bn | SEC (XBRL)· 10 Feb 2026verified |
| Research & development | 237.0 m | 260.6 m | 294.3 m | 295.5 m | 298.1 m | 312.7 m | SEC (XBRL)· 10 Feb 2026verified |
| Operating income | -143.5 m | -94.7 m | -109.4 m | 81.0 m | 123.9 m | 263.1 m | SEC (XBRL)· 10 Feb 2026verified |
| Depreciation & amortisation | 21.3 m | 28.6 m | 18.8 m | 18.7 m | 17.6 m | 13.7 m | SEC (XBRL)· 10 Feb 2026verified |
| EBITDA | -122.2 m ≈ | -66.1 m ≈ | -90.6 m ≈ | 99.7 m ≈ | 141.5 m ≈ | 276.8 m ≈ | SEC (XBRL)· 10 Feb 2026derived |
| Interest expense | 19.4 m | 8.0 m | 7.8 m | 6.9 m | 6.8 m | 1.3 m | SEC (XBRL)· 10 Feb 2026verified |
| Pre-tax income | -124.9 m | -132.0 m | -161.8 m | 95.4 m | 142.6 m | 280.6 m | SEC (XBRL)· 10 Feb 2026verified |
| Income tax | -63.5 m | -68.9 m | 183.8 m | 27.6 m | 43.4 m | -112.8 m | SEC (XBRL)· 10 Feb 2026verified |
| Net income | -61.4 m | -63.0 m | -345.6 m | 67.8 m | 99.2 m | 393.4 m | SEC (XBRL)· 10 Feb 2026verified |
| Diluted EPS | -0.76 | -0.77 | -4.22 | 0.37 | 0.55 | 2.13 | SEC (XBRL)· 10 Feb 2026verified |
| Weighted average diluted shares | 80.3 m | 81.4 m | 81.9 m | 169.8 m | 179.3 m | 184.8 m | SEC (XBRL)· 10 Feb 2026verified |
| Dividend per share | 0.12 | 0.12 | 0.12 | 0.06 | 0.06 | 0.11 | SEC (XBRL)· 10 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 171.9 m | 160.0 m | 145.1 m | 229.9 m | 337.1 m | 212.4 m | SEC (XBRL)· 10 Feb 2026verified |
| Receivables | 215.8 m | 182.7 m | 255.2 m | 300.2 m | 305.5 m | 264.7 m | SEC (XBRL)· 10 Feb 2026verified |
| Current assets | 976.9 m | 840.2 m | 846.5 m | 1.0 bn | 1.3 bn | 978.3 m | SEC (XBRL)· 10 Feb 2026verified |
| Property, plant & equipment, net | 40.4 m | 26.8 m | 55.1 m | 47.3 m | 41.8 m | 45.2 m | SEC (XBRL)· 10 Feb 2026verified |
| Goodwill | 79.2 m | 81.9 m | 81.4 m | 81.6 m | 81.1 m | 81.5 m | SEC (XBRL)· 10 Feb 2026verified |
| Intangibles (excl. goodwill) | 15.7 m | 14.1 m | 10.9 m | 7.0 m | 3.8 m | 1.2 m | SEC (XBRL)· 10 Feb 2026verified |
| Total assets | 1.6 bn | 1.6 bn | 1.4 bn | 1.5 bn | 1.8 bn | 1.6 bn | SEC (XBRL)· 10 Feb 2026verified |
| Accounts payable | 24.0 m | 15.3 m | 18.2 m | 11.3 m | 6.2 m | 12.9 m | SEC (XBRL)· 10 Feb 2026verified |
| Current liabilities | 460.1 m | 485.4 m | 538.9 m | 577.1 m | 1.1 bn | 737.8 m | SEC (XBRL)· 10 Feb 2026verified |
| Total liabilities | 1.1 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn | 844.5 m | SEC (XBRL)· 10 Feb 2026verified |
| Equity | 542.2 m † | 416.1 m † | 130.8 m † | 353.8 m † | 585.5 m † | 787.4 m † | SEC (XBRL)· 10 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -563.0 k | 39.1 m | 22.3 m | 217.8 m | 345.9 m | 505.2 m | SEC (XBRL)· 10 Feb 2026verified |
| Capex | 25.4 m | 10.5 m | 35.4 m | 16.8 m | 7.7 m | 14.5 m | SEC (XBRL)· 10 Feb 2026verified |
| Free cash flow | -25.9 m ≈ | 28.7 m ≈ | -13.0 m ≈ | 201.0 m ≈ | 338.2 m ≈ | 490.7 m ≈ | SEC (XBRL)· 10 Feb 2026derived |
| Investing cash flow | -321.7 m | 72.5 m | 13.1 m | -50.8 m | -202.6 m | 197.2 m | SEC (XBRL)· 10 Feb 2026verified |
| Financing cash flow | 423.4 m | -121.8 m | -47.0 m | -82.0 m | -30.2 m | -834.6 m | SEC (XBRL)· 10 Feb 2026verified |
| Dividends paid | 9.6 m | 9.8 m | 9.8 m | 10.0 m | 10.2 m | 15.4 m | SEC (XBRL)· 10 Feb 2026verified |
| Share repurchases | 28.0 m | 52.7 m | 25.7 m | 0 | 68.1 m | 499.7 m | SEC (XBRL)· 10 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 5.6 bn USD
Key indicators
Coverage and freshness
Score by group
77% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/Salesunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 75.9% | 90 (on a fixed band) | 14% |
| EBIT margin · Quality | 9.9% | 59 (vs peers) | 11% |
| FCF margin · Quality | 25.3% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | 9.8% | 39 (on a fixed band) | 22% |
| Revenue growth (YoY) · Growth | 16.6% | 55 (vs peers) | 11% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.0x | 14 (on a fixed band) | 8% |
| EV/Sales · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 7.9% | 100 (on a fixed band) | 17% |
| Shareholder yield (distributions) · Returns | 9.9% | 100 (on a fixed band) | 6% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial14/100 · 1/2 factors with a value
- Growth45/100 · 2/2 factors with a value
- Quality84/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation· partial100/100 · 1/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
PEGASYSTEMS INC. (PEGA). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 1.7 bn USD in 2025; YoY growth 16.6%; net margin 16.9%; ROE 51.4%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 75.9%
- FCF margin: 25.3%
- FCF yield: 7.9%
- Shareholder yield (distributions): 9.9%
What contradicts it
- Current ratio: 1.0x
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/Sales.
Versus the vertical median
Services-Computer Processing & Data Preparation (SIC 7374) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ADPAutomatic Data Processing, Inc. | 119.8 bn | 27.7 | 77.0% | 20.1% | +6.7% | +19% / +32% |
| WDAYWorkday, Inc. | 44.4 bn | 40.9 | 16.0% | 12.3% | +13.1% | −6% / −25% |
| VRSKVerisk Analytics, Inc. | 25.9 bn | 30.1 | — | 29.3% | +6.6% | −12% / −18% |
| ATHMAutohome Inc. | 10.4 bn | 53.5 | 6.3% | 443.2% | +11.1% | −5% / −18% |
| PEGAPegasystems Inc. | 5.6 bn | 21.3 | 51.4% | 16.9% | +16.6% | −44% / +51% |
| FAFirst Advantage Corp | 3.9 bn | 160.5 | 1.9% | 1.5% | +83.0% | +62% / +45% |
| QBTSD-Wave Quantum Inc. | 3.8 bn | — | -28.0% | -2,001.6% | +178.5% | −54% / +1,166% |
| RAMPLiveRamp Holdings, Inc. | 2.3 bn | 15.8 | 16.2% | 18.7% | +9.0% | +41% / +39% |
| GLOBGlobant S.A. | 2.1 bn | 21.0 | 5.1% | 4.2% | +1.6% | −25% / −78% |
| INODInnodata Inc | 1.5 bn | 32.8 | 37.7% | 14.7% | +47.6% | −25% / +541% |
| LZLegalZoom.com, Inc. | 1.1 bn | 56.0 | 12.1% | 2.6% | +10.9% | −26% / −40% |
| NRDSNerdWallet, Inc. | 754.4 m | 13.3 | 18.2% | 7.6% | +21.7% | −21% / +1% |
| NXTTNext Technology Holding Inc. | 736.5 m | — | -59.4% | -2,356.0% | +545.3% | −99% / −100% |
| CARSCars.com Inc. | 682.5 m | 22.4 | 7.4% | 4.7% | +0.6% | +10% / −32% |
| IBEXIBEX Limited | 593.6 m | 14.3 | 30.4% | 7.2% | +15.4% | +27% / +152% |
| SOPHSOPHiA GENETICS SA | 477.3 m | — | -110.0% | -102.2% | +18.6% | +42% / +73% |
| GRVYGravity Co., Ltd. | 475.7 m | 0.0 | 16.5% | 17.0% | −31.0% | +19% / −6% |
| EGHT8x8, Inc. | 326.4 m | 55.5 | 3.5% | 0.6% | +2.9% | +16% / −27% |
| TCXTucows Inc | 140.3 m | — | — | -21.2% | +7.7% | −42% / −41% |
| TRAKRepositrak, Inc. | 132.7 m | 18.7 | 14.9% | 32.5% | +3.0% | −46% / −29% |
| BIRDSmartbird, Inc. | 92.1 m | — | -164.0% | -72.8% | −19.7% | −68% / −91% |
| VERIVeritone, Inc. | 56.7 m | — | -517.7% | -117.5% | −0.5% | −87% / −73% |
| GMHSGamehaus Holdings Inc. | 51.4 m | 8.5 | 11.8% | 4.1% | −11.3% | −35% / −93% |
| DGNXDiginex Limited | 38.7 m | — | — | -255.5% | +57.0% | −99% / unavailable |
| CHRCheer Holding, Inc. | 14.0 m | 0.1 | 7.6% | 17.2% | +1.1% | −77% / −100% |
1- and 3-year price returns: for PEGA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 23.88 Total return -30% · Per year -30% | 42.11 Total return 23% · Per year 23% | 63.30 Total return 85% · Per year 85% |
| 3 years | 25.72 Total return -24% · Per year -9% | 50.80 Total return 49% · Per year 14% | 83.46 Total return 145% · Per year 35% |
| 5 years | 27.71 Total return -18% · Per year -4% | 61.27 Total return 81% · Per year 13% | 110.04 Total return 224% · Per year 26% |
- Exit P/E± 12.70
- Net margin± 8.89
- Annual revenue growth± 6.94
- Annual dilution± 0.75
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Pegasystems (PEGA) develops enterprise software for AI-driven decisioning and workflow automation, used by large companies and government agencies. The company is going through a difficult 2026 with slowed ACV growth, so its relevance depends on whether it can capture demand for governed AI solutions.
SWOT
Strengths
Weaknesses
Opportunities
- Demand for governed AI solutions could grow if clients choose platforms that combine external models with operational control 3.
- Expanding partnerships with cloud providers and integrators could accelerate sales 1.
- If legacy modernization becomes a priority, the legacy transformation offering could generate new revenue 1.
Risks
- Slowing ACV growthhigh
If commercial execution does not improve, ACV growth could remain below management's expectations 3.
- Appian litigationmedium
Ongoing proceedings and related legal costs could add expenses and affect the company's reputation 2.
- Dependence on key personnelmedium
The company relies on highly skilled technical and managerial staff, and losing them could disrupt operations 1.
- Revenue volatilitymedium
The timing and size of license and Pega Cloud contracts are hard to predict, which can make results vary between periods 1.
- Currency risklow
Exchange rate movements affect reported revenue and ACV, according to the figures in 2.
Investment thesis
What would need to be true (bull case)
- If ACV growth accelerates again, the company could show that demand for its AI solutions remains strong.
- Growth in Pega Cloud and the move of clients to the cloud model could strengthen long-term recurring revenue.
- The stated free cash flow target could support renewed investor confidence if it is reached.
What would break the thesis
- If the slowdown in ACV persists, pressure on revenue and cash flow could continue.
- Competitors that adopt AI more quickly could reduce the platform's current advantage.
- Litigation and legal costs could weigh on margins and management attention.
What to watch
- ACV trajectory and Pega Cloud growthQ4 2026
- Free cash flow against the 700 million USD target2028
- Outcome of the Appian litigationnext 10-K
- Effect of the restructuring on consulting2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Pegasystems develops, licenses, hosts and supports enterprise software that helps organizations optimize decisions and processes in real time. Its platform for AI decisioning and workflow automation is used by leading brands and government agencies to personalize customer experiences and modernize legacy systems. According to the 10-K 1, total revenue reached 1745.8 million USD in fiscal 2025.
The business model is largely subscription based, with revenue split between Pega Cloud, maintenance, subscription licenses and consulting. The company tracks performance through ACV, the annualized value of active contracts, which stood at 1653.3 million USD on September 30, 2026 2.
The offering also includes Blueprint, a generative tool that accelerates application design, along with implementation services and a broad partner program with systems integrators and cloud providers, as described in 1.
Segments
Pega Cloud
Pega Cloud is the most dynamic segment. Its revenue rose 25% in fiscal 2025 on wider adoption by existing clients 1, and in Q3 2026 it grew 19% year over year 3. The company reported Pega Cloud reached 59% of total ACV in Q3 2026 3.
Subscription licenses
Subscription license revenue fell in the first nine months of 2026, reflecting clients moving to cloud offerings. Revenue declined 29% versus the same period of 2025 3, which the company attributes to the shift toward cloud.
Consulting
Consulting revenue declined in 2026, down 13% in the first nine months 3. The company announced a restructuring plan aimed at an AI-first delivery model, which could change the revenue mix over the medium term.
Market context
The market for enterprise process automation and decisioning software spans CRM, BPM, RPA and decision management, according to the definitions in 1. Clients include financial services, healthcare, government, telecom and insurance organizations. Demand for AI brings opportunities but also closer scrutiny of large technology spending, as the company notes in 2.
The company says the AI market is still sorting itself out and that clients are examining large technology investments more closely 3. If this caution persists, ACV growth could remain below management's expectations.
Trends
- Shift to cloudmixed
Clients are moving from perpetual licenses and maintenance to Pega Cloud, which raises recurring revenue but reduces upfront license revenue.
- Investment in AImixed
The company is investing heavily in AI and embedding generative models in its products. Rapid AI adoption by competitors could, however, erode its competitive edge.
- Scrutiny of technology spendingheadwind
Clients are scrutinizing large technology spending as AI disrupts the industry, which slowed ACV growth in 2026 2.
- AI regulationheadwind
The legal framework for AI is changing rapidly, which could raise compliance costs and limit offerings in some jurisdictions 1.
Competitive position
Pegasystems competes with enterprise software vendors and systems integrators that offer their own automation and AI solutions. The company notes that competitors are also investing in AI and that some may adopt it faster 1. Large partners such as Accenture and Infosys could also compete and distribute their own solutions 1.
The company's stated edge lies in its centrally managed agent architecture and its experience in governing decisions, which matters for regulated organizations 3.
- AccentureACN
Major partner and possible competitor through its own digital transformation services, listed among partners in 1.
- InfosysINFY
Systems integrator listed among the company's largest partners, which could offer competing automation solutions 1.
- Cognizant Technology SolutionsCTSH
Systems integrator and partner that could also deliver its own transformation solutions 1.
- Appian
Company with which Pegasystems is in ongoing litigation, indicating direct competition in process automation 2.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Pegasystems Stock Has Fallen 46% in a Year. Here’s Where the Stock Could GoYahoo Finance — News · 17 Sept 2026 · EN
- Could Pegasystems (PEGA) Stock Win as Enterprises Rethink How they Deploy AI?Yahoo Finance — News · 28 Aug 2026 · EN
The latest news item in our archive is from 17 Sept 2026; the newest SEC filing is from 20 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report20 Oct 2026
- Current report20 Oct 2026Results of operations · Financial statements and exhibits
- Quarterly report21 Jul 2026
- Current report21 Jul 2026Results of operations · Financial statements and exhibits
- Current report18 Jun 2026Shareholder vote
- Current report08 Jun 2026Regulation FD disclosure · Financial statements and exhibits
- Proxy statement24 Apr 2026
- Quarterly report21 Apr 2026
- Current report21 Apr 2026Results of operations · Financial statements and exhibits
- Current report12 Feb 2026Departure or appointment of officers · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Pegasystems Inc. · 10 Feb 2026
- [2] Form 10-Q, quarter ended 2026-09-30 · SEC / Pegasystems Inc. · 20 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Pegasystems Inc. · 20 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.