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Pegasystems Inc (PEGA) stock

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NASDAQ: PEGA Nasdaq Application Software Next results ~February 9, 2027

C+ Fundamentals grade

Pegasystems is a software company whose platform lets client organisations build and run their own applications. Its main cloud offering, Pega Cloud, provides managed, internet-based environments in which customers create and deploy Pega-based software.

The company earns money chiefly from software licences and Pega Cloud subscriptions, supported by a consulting arm that implements new licence and cloud agreements; it increasingly relies on partners and the clients themselves to carry out these projects. Customers span commercial industries and the public sector, including domestic and foreign government agencies.

Pegasystems is incorporated under Massachusetts law and conducts a substantial part of its business outside the United States, with international sales billed in currencies such as the euro, Australian dollar and British pound, and its cloud service hosted on third-party providers' infrastructure. As of December 2025 its chief executive beneficially owned about 45 percent of the common stock, giving concentrated influence over matters put to shareholders.

Based on Pegasystems Inc's 10-K filed February 10, 2026.

Stock price today

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Third-party market data · may be delayed

Fair value per share

~$35

Cash-flow model

Base case. Range ~$27–$46 across our lower- and higher-growth cases (-0.1%–9.9% a year).

Price vs value

Modestly undervalued

The price is inside our value range, 1% below our base value.

Price used: $34.58, November 2, 2026

Pegasystems Inc valuation: adjust assumptions and compare models →

Who’s trading

What company insiders, investment funds and members of Congress have been doing with the stock, from their own filings.

  • Insiders0 buying, 7 selling0 purchases and 53 sales by directors and officers, last 12 monthsInsider trades
  • Funds234 adding, 266 cuttingOf 67 active managers that changed their stake, 35 added; quarter to June 30, 2026Fund buyers and sellers

Value diary

Our note on each quarter Pegasystems files

10-Q filed October 20: Pegasystems

Model value −11.6%

Revenue for the twelve months to September 2026 reached $1.75bn, up 0.9% on a year earlier and slower than the 3.6% logged a quarter before. That growth ranks the company 19th of the 23 internet and data names we cover. Free-cash-flow margin held at 25.3%, while the operating margin narrowed to 9.9% from 17.4%. The diluted share count is up 4.1% over the year, diluting existing holders. Our fundamentals grade slips from C+ to C, and our model value falls from $36.32 to $32.09 a share, against a market price of $36.23. The rating stays Hold. At that price the market is pricing in roughly 7.1% a year of cash-flow growth over five years, close to the 7.6% annual revenue growth already delivered.

Source: 10-Q filed October 20, 2026 on SEC EDGAR · Financials · Valuation

Earlier notes (1)

Where Pegasystems stands after its latest 10-Q

Revenue for the twelve months to June 2026 was $1.74bn, up 3.6% on a year earlier, about the same pace as a quarter earlier. Free-cash-flow margin rose to 28.4% from 24.2% a year earlier. Operating margin narrowed to 9.9% from 16.4%. The diluted share count is up 4.1% on a year earlier, which dilutes existing holders. Against its peers on growth, profitability, cash generation and balance sheet, it grades C+. It passes 3 of our 3 financial-health checks. Our cash-flow model value is $36.32 a share, against a share price of $34.98. At that price, our model says the market is pricing in about 6.9% a year of cash-flow growth for five years, close to the 7.5% a year revenue growth it has delivered.

10-Q on SEC EDGAR

Written from the company's filings and our models when each quarter's report arrives. Figures in older notes are as published at the time. Not investment advice.

The Fundamentalytics view

Next results ~February 9, 2027 (estimated)

Pegasystems Inc's trailing-twelve-month revenue grew 0.9% year on year, with a free-cash-flow margin of 25.3%. Where it stands out: days sales outstanding of 27 days ranks 31 of 162 application software companies we cover. Where it lags: revenue growth of 0.9% ranks 151 of 184 application software companies we cover.

Our discounted-cash-flow model values the business at ~$35 per share in the base case (~$27–$46 across growth scenarios) — model values under stated assumptions, not a price target.

Current signal Operating margin compressing: TTM operating margin fell to 9.9%, down 7.5pp year over year.

Assembled from SEC-filed figures — the full workings are on this page and in our methodology. Observations, not recommendations.

Highlights

How we pick these

Strengths

  • Strong cash generation. 25.3% of revenue turned into free cash flow, against a median of 15.2% for application software companies we cover.
  • Net cash. Cash exceeds long-term debt by $0.2bn.

Things to watch

  • Margins narrowing. Operating margin is down 7.5 points on a year ago.
  • Share dilution. Diluted shares rose 4.1% in a year.
  • Volatile shares. Over the past year the shares showed annualised volatility of 51% and a beta of 0.7 against the S&P 500.
  • Insiders selling. 7 insiders sold $25M of stock over the past 365 days and none bought (68% under pre-set trading plans).
  • Growth easing. The growth rate is 2.7 points lower than a quarter earlier.
  • Below peers: revenue growth. Revenue growth of 0.9% ranks 151 of 184 application software companies we cover (median 12.0%).

Latest results: FY2026 Q3

Filed October 20, 2026
Earnings per share
$0.35 against an average estimate of $0.46: missed by 24.6%
Revenue
$393m, up 3.1% on a year earlier
Share reaction
+0.4% in the first session after the results on October 20, 2026, against +0.9% for the S&P 500
Guidance given
free cash flow $700m (2028)
Next report
October 20, 2026; average EPS estimate $0.91

Pegasystems' figures from its SEC filings and results release; estimates are the analysts' average. Not a recommendation.

Price chart

  • 1 day+1.9%
  • 1 week-5.8%
  • 1 month+1.9%
  • This year-41.8%
  • 1 year-45.4%
  • 5 years-42.4%
  • S&P 500 this year+11.2%

Closing prices to 2026-11-02. Price change only, dividends excluded.

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Third-party market data · may be delayed

At a glance

Trailing twelve months, from SEC filings

Profitability

Revenue (TTM)
$1.7B
Operating margin
9.9%
Net margin
16.9%
EPS (TTM, diluted)
$1.68

Growth

Revenue growth
+0.9%
Change in growth rate
−2.7 pts

Cash

Free cash flow (TTM)
$442M
FCF margin
25.3%
Stock pay % of revenue
8.3%

Earnings

Last results
October 20, 2026
Next results (est.)
February 9, 2027

News & updates

Updated October 31, 2026

Company announcements, filed results and changes that matter to shareholders.

  1. Results
  2. Guidance
  3. Our research
  4. Our research
  5. Insider trade
  6. Results

Refreshed hourly when new source data is available. Summaries are checked against company releases and SEC filings. Company announcement headlines are labelled when a checked summary is unavailable.

Valuation

Pegasystems Inc valuation models and calculator

What the price is pricing in

The share price implies about 4.5% a year of cash-flow growth for five years.That is close to the 7.6% a year revenue growth Pegasystems has delivered.

  • Priced in4.5%
  • Last 12 months0.9%
  • 3 years a year8.9%
  • 5 years a year7.6%

Our cash-flow model with every input fixed except growth over the next five years, solved for the growth at which the model value equals the share price ($33.30, Nov 3, 2026). Cash-flow growth then fades to 2.5% a year; discount rate 8.5%. Delivered figures are revenue growth from SEC filings. This is a model exercise, not investment advice or a forecast of the share price. All companies

Fundamentalytics rating

model v1.6 · 2026-11-03
Hold12-month view
12-month price target
~$35
Price used
$33.30close November 3, 2026
Implied change
▲ +4%
Uncertainty
Medium

How we got here: a discounted-cash-flow model of Pegasystems Inc's free cash flow after stock-based pay with after-tax interest added back ($269M, FY2026 Q3 TTM), growing 6.4% and 5.4% in the next two years (forecasts, guidance and its record), then back to 4.9% by year five, and fading to 2.5%, discounted at 8.5%. Lower and higher growth cases span ~$27–~$46 ; that spread sets a 25% margin before we rate Buy or Sell.

Produced by Fundamentalytics' automated valuation model on November 3, 2026, using delayed market prices. Rating meanings, methodology and conflicts: recommendations disclosure and research disclaimer. General research, not personal advice — it does not consider your circumstances. Prices can fall as well as rise.

Our value per share comes from a discounted-cash-flow model of Pegasystems Inc's free cash flow after stock-based pay ( $269M, FY2026 Q3 TTM, with after-tax interest added back): growth for five years as below (the first two years from forecasts, guidance and the company's record), fading to 2.5%, discounted at 8.5%, then cash added and debt and other claims subtracted. These are model values under stated assumptions, not price targets or recommendations.

Valuation models

We value Pegasystems Inc as an operating company, with every model that fits that kind of business. Cost of equity 10.1%: the 10-year Treasury yield (4.9%) plus a beta of 1.14 times a 4.5% equity risk premium.

Value per share by model
Model Value per share In the combined value?
Cash-flow model (DCF) Free cash flow to the firm (after stock pay, with after-tax interest added back), grown then faded to 2.5%, discounted at 8.5% as the firm rate, less debt and other claims. ~$35 ~$27–$46 Primary model, counts double
Forward price-to-earnings vs peers Next year's consensus earnings per share times peers' typical (harmonic-mean) forward price-to-earnings. Uses analysts' consensus estimates (third-party data), not our forecasts. ~$33 ~$27–$55 Included
Residual income Book value plus the present value of returns above the cost of equity, fading over ten years. — Does not apply: the model gives no positive value
Justified price-to-book Book value times (return on equity - growth) / (cost of equity - growth): steady-state returns. — Does not apply: return on equity is not positive
Combined value Weighted average of the models that apply: the primary model (cash-flow model (dcf)) counts double. Models more than 5x or less than 0.2x the share price, or more than 3x away from the other models' median, are left out. ~$34 ~$33–$35 2 models

Different models fail in different ways, so where several apply we average them rather than trust one. Peer-based models compare Pegasystems Inc with Application Software in our coverage, using third-party market data. Model values are estimates under stated assumptions, updated as new filings arrive; not price targets or investment advice. How each model works.

What moves the value

  • Revenue growth 5 points lower ▼ −24%
  • Revenue growth 5 points higher ▲ +32%
  • Free-cash-flow margin 1 point lower ▼ −4%
  • Last year's free-cash-flow margin change, if it persists ▲ +2%
  • Discount rate 1 point higher ▼ −14%
Value per share under different assumptions
Discount rate ↓ / growth → −5% growth0% growth5% growth10% growth15% growth20% growth
7% $26$34$45$60$79$104
8.5% $20$26$34$45$59$76
10% $17$21$28$36$46$60

Valuation multiples over time Market data may be delayed

At fiscal year end 20152016201720182019202020212022202320242025Now
Share price$13.39$17.60$23.10$23.49$39.18$65.63$55.12$16.93$24.21$46.25$59.38$34.58
Market value$2.1bn$2.8bn$3.8bn$3.9bn$6.2bn$10.5bn$9.0bn$2.8bn$4.1bn$8.3bn$11.0bn$6.1bn
+ Net debt (− = net cash)−$93m−$71m−$162m−$114m−$68m$346m$431m$449m$269m$130m−$212m−$202m
Enterprise value$2.0bn$2.7bn$3.7bn$3.8bn$6.1bn$10.9bn$9.4bn$3.2bn$4.4bn$8.4bn$10.8bn$5.9bn
Multiples
Price / sales 3.1x3.7x4.3x4.4x6.8x10.4x7.4x2.1x2.9x5.5x6.3x3.5x
Price / earnings 58.3x62.3x38.8xn/m————60.6x83.6x27.9x20.6x
Price / free cash flow 37.3x135.0x26.5x42.2x——n/m—20.5x24.5x22.4x13.7x
EV / EBITDA 23.1x36.6x31.1xn/m————43.9x59.5x38.9x31.5x

Market value uses the period's diluted share count; figures for each fiscal year use that year's results and the price at year end. "Now" uses today's price and the last twelve months.

Moat

51 /100

Moderate moat

How hard Pegasystems's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Cash operating profit has been a median 24.2% of total assets over 10 years.

  • Pricing power 18 / 20

    Gross margin has been a median 71.4%, moving by 3.6 percentage points (standard deviation) across 10 years.

  • Durability 10 / 20

    Operating margin has been a median -4.2%; its worst year was -14.2%.

  • Cash conversion 13 / 20

    Free cash flow was positive in 9 of 10 years, at a median 7.1% of revenue.

  • Discipline 5 / 20

    The diluted share count rose 7.0% over five years; stock-based pay has been a median 9.3% of revenue.

AI disruption exposure: High. In this industry, the core product is information work that AI systems increasingly perform. The score above includes a 15-point deduction for that exposure (66 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Forecasts and guidance

Analysts' consensus

Fiscal yearEPSGrowthRevenueGrowth
Current $2.11 +0% $1.8bn +2%
Next $2.37 +13% $1.9bn +6%

Next year's EPS estimate has moved −9.9% in 90 days, across 10 analysts.

How the EPS forecast has moved

The consensus EPS forecast for the current fiscal year is −14.2% on 90 days ago. In the last 30 days, 1 analyst raised Pegasystems Inc's forecast and 2 cut it.

Consensus EPS forecast Pegasystems Inc, last 90 days
$2.00 $2.20 $2.40 $2.60 $2.80 90 days ago 60 days ago 30 days ago 7 days ago Now Current fiscal year, 90 days ago: $2.46 Current fiscal year, 60 days ago: $2.46 Current fiscal year, 30 days ago: $2.47 Current fiscal year, 7 days ago: $2.41 Current fiscal year, Now: $2.11 $2.11 Next fiscal year, 90 days ago: $2.64 Next fiscal year, 60 days ago: $2.64 Next fiscal year, 30 days ago: $2.66 Next fiscal year, 7 days ago: $2.60 Next fiscal year, Now: $2.37 $2.37

Average of analysts' published estimates (third-party data).

View chart data
Period Current fiscal yearNext fiscal year
90 days ago $2.46$2.64
60 days ago $2.46$2.64
30 days ago $2.47$2.66
7 days ago $2.41$2.60
Now $2.11$2.37

Earnings against estimates

Quarter toEstimateActualSurprise
Sept 2026 $0.46 $0.35 −24.6%
Jun 2026 $0.43 $0.35 −19.4%
Mar 2026 $0.69 $0.46 −33.6%
Dec 2025 $0.73 $0.76 +3.5%

Adjusted EPS as companies report it, against the average analyst estimate.

Management guidance

Earnings release, October 20, 2026
  • free cash flow 2028 — Non-GAAP Maintained
    “"We are taking decisive actions to improve execution, accelerate growth, and keep us on track to deliver $700M or more of free cash flow in 2028."” source

Figures and quotations are management's, copied from the company's own press release (SEC 8-K exhibit) and checked word for word against it. Forward-looking statements are the company's expectations, not ours and not advice; guidance can change or be missed.

How our valuation uses these forecasts

Our cash-flow model grows Pegasystems Inc's revenue by +6.4% next year and +5.4% the year after, then fades back toward its own record by year five. Next year's rate weighs analysts' consensus (+7.1%, weight 68%) and the company's own record (+4.9%, weight 32%) . How the weights are set.

Analyst recommendations

10 analysts, Nov 2026
Buy440%
Hold660%
Sell00%

Monthly trend

  1. Nov 202622610
  2. Oct 202622610
  3. Sep 202634411

Counts of recommendations published by analysts covering Pegasystems Inc, by month. Source: Aggregated broker recommendations (third-party data). Aggregated counts only: we do not reproduce any firm's recommendation or price target, and these are not Fundamentalytics ratings.

Positioning

Short interest
12.7%
of tradable shares
Days to cover
5.03
at average volume
Short interest, 1 month
−8%
to October 15, 2026
Held by institutions
61%
of shares
Held by insiders
48.0%
of shares
Employees
5,598
full time

Consensus figures average analysts' published estimates (third-party data); guidance is the company's own. Neither is our forecast. Short interest is reported twice a month and lags. Market data may be delayed.

This section is general information, not investment advice or a personal recommendation, and it does not take account of your objectives or circumstances. Forecasts and guidance are estimates, not promises: companies miss their own guidance and analysts' figures are often revised. Prices can fall as well as rise, and you can lose money. See our disclaimer.

Share-price performance

Market data may be delayed

What moved the share price

Last 12 months −45.4%

$63.29 on October 31, 2025 to $34.58

ThenNowEffect
Revenue (last 12 months) $1.7bn $1.7bn +3.6%
Net margin 13.1% 18.7% +42.0%
P/E multiple 51.7x 19.2x −62.9%
Share count 180m 180m +0.1%

Biggest factor: p/e multiple.

Last 3 years +53.2%

$22.57 on November 3, 2023 to $34.58

ThenNowEffect
Revenue (last 12 months) $1.3bn $1.7bn +34.5%
P/S multiple 2.9x 3.6x +24.1%
Share count 165m 180m −8.2%

Biggest factor: revenue. Loss-making at one end, so the split uses price/sales.

The effects multiply back to the price change exactly. Results are the last 12 months as known on each date (filings assumed public 45 days after quarter end).

Return and risk by year

Calendar year 202120222023202420252026 to date
Return
PEGA−16%−69%+43%+91%+28%−42%
Industry peers (median)−7%−50%+19%+2%−21%−14%
S&P 500+29%−18%+26%+25%+18%+11%
Months that ended higher
PEGA33%8%58%58%67%46%
S&P 50075%42%67%75%75%46%
Largest fall from a high during the year
PEGA−31%−73%−33%−18%−44%−57%
S&P 500−5%−25%−10%−8%−19%−9%

Worst fall since November 3, 2015: 79% from February 12, 2021 to October 11, 2022. Getting back needed a 381% gain, and the shares have not yet recovered.

Price behaviour

52-week range
$25.90 – $62.63
From 52-week high
−44.8%
vs 50-day average
−2.0%
vs 200-day average
−6.2%
Volatility (1 year)
51%
Beta vs S&P 500
0.71

Volatility is the annualised standard deviation of daily returns. Beta 1.5 means the shares typically moved 1.5% for each 1% move in the S&P 500 over the past year. Prices to November 2, 2026.

Share price after results

Next day
7 up, 5 down
typical move ±16.0%
After a week
9 up, 3 down
typical move ±15.9%
After a month
8 up, 3 down
typical move ±16.1%
Results releasedNext dayS&P 500 next day5 days21 days
October 20, 2026 +0.4% +0.9% +0.8% —
July 21, 2026 −18.0% +0.7% −6.8% +7.0%
April 21, 2026 −14.4% +0.4% −17.9% −21.5%
February 10, 2026 −9.3% −0.3% +6.8% +1.6%
October 21, 2025 +19.7% −0.5% +19.5% −1.4%
July 22, 2025 +13.0% +0.9% +17.6% +0.9%
April 22, 2025 +33.4% +4.2% +37.3% +50.0%
February 12, 2025 −17.5% +0.7% −21.1% −30.3%
October 23, 2024 +13.4% −0.7% +16.0% +27.0%
July 24, 2024 +9.7% −2.8% +10.9% +7.0%
April 24, 2024 −0.4% −0.4% +2.2% +2.3%
February 14, 2024 +42.2% +1.6% +33.8% +28.3%

From the close before the release date to the close 1, 5 and 21 trading days after it, so releases before the open and after the close are both captured. Past moves don't predict future ones.

Options strategies

All options ideas

How Pegasystems Inc’s listed options are priced, and three ways to use them that follow from our valuation. Quotes are delayed, read November 2, 2026. Check the live chain at your broker before trading.

Cash-secured put

Not offered: fundamentals grade C+ (needs B+ or better).

We suggest selling a put only on well-rated companies, at a strike where the price you would pay if assigned (strike less premium) is at or below our fair value.

PEGA Pegasystems Inc Grade C+ $34.59

Own 100 shares, sell the $37.50 call expiring December 18, 2026 (46 days) for $1.35 a share — $135 per contract.

Previous session · Bid $1.35, ask $1.45, quoted Mon 2 Nov, 17:33 New York time with PEGA at $34.59. Option prices move with the shares: check the live chain at your broker before trading.

  • If PEGA ends below $37.50: you keep your shares and the $135 — 3.9% extra on the position, 31.0% a year at that pace.
  • If it ends above $37.50: your shares are sold at $37.50, a total return of 12.3% including the premium — at or above our value of ~$35.
$426 $0 −$665 Break-even $33.24 Price $34.59 Our value $35.00
Profit or loss per contract at expiry, by share price (including the shares bought at today's price).
Premium
$135
Annualised
31.0%
Break-even
$33.24
Max gain
$426
Chance of selling
~37%

Collar

Not offered: the shares trade below our fair value: a collar caps upside the model expects.

For holders of a stock trading at or above our fair value: buy a put for a floor and sell a call to pay for it.

General research, not personal advice. Options can lose you more than you expect and are not suitable for everyone: put sellers can be made to buy shares that keep falling, call sellers give up gains above the strike, and results or news can move prices sharply. Chances shown are approximations from each option’s delta. Spreads, fees and early assignment are not modelled.

Pegasystems Inc in five measures

Fundamentals grade C+
Growth Profitability Cash Balance sheet Value

Growth, profitability, cash generation and balance sheet are percentiles against the companies we cover in the same industry, from SEC filings (100 = best). Value compares the share price with our modelled value range (50 = at our base value; higher = cheaper). A description of reported data and our model — not a quality score or advice.

Fundamentals

Revenue (TTM) Pegasystems Inc
$1.4B $1.5B $1.6B $1.7B $1.8B FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue (TTM), FY23 Q4: $1.4B Revenue (TTM), FY24 Q1: $1.4B Revenue (TTM), FY24 Q2: $1.5B Revenue (TTM), FY24 Q3: $1.5B Revenue (TTM), FY24 Q4: $1.5B Revenue (TTM), FY25 Q1: $1.6B Revenue (TTM), FY25 Q2: $1.7B Revenue (TTM), FY25 Q3: $1.7B Revenue (TTM), FY25 Q4: $1.7B Revenue (TTM), FY26 Q1: $1.7B Revenue (TTM), FY26 Q2: $1.7B Revenue (TTM), FY26 Q3: $1.7B $1.7B

Source: SEC EDGAR filings. Retrieved October 21, 2026.

View chart data
Period Revenue (TTM)
FY23 Q4 $1.4B
FY24 Q1 $1.4B
FY24 Q2 $1.5B
FY24 Q3 $1.5B
FY24 Q4 $1.5B
FY25 Q1 $1.6B
FY25 Q2 $1.7B
FY25 Q3 $1.7B
FY25 Q4 $1.7B
FY26 Q1 $1.7B
FY26 Q2 $1.7B
FY26 Q3 $1.7B
Revenue growth, TTM YoY Pegasystems Inc
0% 5% 10% 15% 20% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Revenue growth, TTM YoY, FY23 Q4: 8.7% Revenue growth, TTM YoY, FY24 Q1: 13.4% Revenue growth, TTM YoY, FY24 Q2: 15.4% Revenue growth, TTM YoY, FY24 Q3: 9.3% Revenue growth, TTM YoY, FY24 Q4: 4.5% Revenue growth, TTM YoY, FY25 Q1: 14.3% Revenue growth, TTM YoY, FY25 Q2: 12.5% Revenue growth, TTM YoY, FY25 Q3: 17.0% Revenue growth, TTM YoY, FY25 Q4: 16.6% Revenue growth, TTM YoY, FY26 Q1: 3.5% Revenue growth, TTM YoY, FY26 Q2: 3.6% Revenue growth, TTM YoY, FY26 Q3: 0.9% 0.9%

Source: SEC EDGAR filings. Retrieved October 21, 2026.

View chart data
Period Revenue growth, TTM YoY
FY23 Q4 8.7%
FY24 Q1 13.4%
FY24 Q2 15.4%
FY24 Q3 9.3%
FY24 Q4 4.5%
FY25 Q1 14.3%
FY25 Q2 12.5%
FY25 Q3 17.0%
FY25 Q4 16.6%
FY26 Q1 3.5%
FY26 Q2 3.6%
FY26 Q3 0.9%
Operating margin (TTM) Pegasystems Inc
0% 5% 10% 15% 20% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 Operating margin (TTM), FY23 Q4: 5.7% Operating margin (TTM), FY24 Q1: 5.8% Operating margin (TTM), FY24 Q2: 9.2% Operating margin (TTM), FY24 Q3: 9.2% Operating margin (TTM), FY24 Q4: 8.3% Operating margin (TTM), FY25 Q1: 16.5% Operating margin (TTM), FY25 Q2: 16.4% Operating margin (TTM), FY25 Q3: 17.4% Operating margin (TTM), FY25 Q4: 15.1% Operating margin (TTM), FY26 Q1: 10.2% Operating margin (TTM), FY26 Q2: 9.9% Operating margin (TTM), FY26 Q3: 9.9% 9.9%

Source: SEC EDGAR filings. Retrieved October 21, 2026.

View chart data
Period Operating margin (TTM)
FY23 Q4 5.7%
FY24 Q1 5.8%
FY24 Q2 9.2%
FY24 Q3 9.2%
FY24 Q4 8.3%
FY25 Q1 16.5%
FY25 Q2 16.4%
FY25 Q3 17.4%
FY25 Q4 15.1%
FY26 Q1 10.2%
FY26 Q2 9.9%
FY26 Q3 9.9%
FCF margin (TTM) Pegasystems Inc
10% 15% 20% 25% 30% FY23 Q4 FY24 Q3 FY25 Q2 FY26 Q3 FCF margin (TTM), FY23 Q4: 14.0% FCF margin (TTM), FY24 Q1: 22.5% FCF margin (TTM), FY24 Q2: 21.4% FCF margin (TTM), FY24 Q3: 21.8% FCF margin (TTM), FY24 Q4: 22.6% FCF margin (TTM), FY25 Q1: 22.0% FCF margin (TTM), FY25 Q2: 24.2% FCF margin (TTM), FY25 Q3: 24.9% FCF margin (TTM), FY25 Q4: 28.1% FCF margin (TTM), FY26 Q1: 29.1% FCF margin (TTM), FY26 Q2: 28.4% FCF margin (TTM), FY26 Q3: 25.3% 25.3%

Source: SEC EDGAR filings. Retrieved October 21, 2026.

View chart data
Period FCF margin (TTM)
FY23 Q4 14.0%
FY24 Q1 22.5%
FY24 Q2 21.4%
FY24 Q3 21.8%
FY24 Q4 22.6%
FY25 Q1 22.0%
FY25 Q2 24.2%
FY25 Q3 24.9%
FY25 Q4 28.1%
FY26 Q1 29.1%
FY26 Q2 28.4%
FY26 Q3 25.3%

Data: SEC EDGAR XBRL company facts (as filed in 10-K/10-Q); forms 10-K, 10-Q. Generated November 3, 2026. Definitions in our methodology.

Where the money goes

FY2025, from the 10-K

Each dollar Pegasystems took in during FY2025, followed through to profit: what it cost to make, what went on research and running the business, and what was left after tax.

  1. Revenue $1.7B
  2. Other income $130M · 7.5%
  3. Cost of revenue $421M · 24.1%
  4. Gross profit $1.3B · 75.9%
  5. Research and development $313M · 17.9%
  6. Selling, general and admin $727M · 41.7%
  7. Other operating costs $21.3M · 1.2%
  8. Operating income $263M · 15.1%
  9. Net income $393M · 22.5%

Shares of revenue. Source: Pegasystems's 10-K for FY2025, as filed with the SEC. "Other" lines are what the reported lines leave unexplained. Other income is income outside operations, such as investment gains.

Financial statements

US$ millions unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year 2009 Dec 2009 2010 Dec 2010 2011 Dec 2011 2012 Dec 2012 2013 Dec 2013 2014 Dec 2014 2015 Dec 2015 2016 Dec 2016 2017 Dec 2017 2018 Dec 2018 2019 Dec 2019 2020 Dec 2020 2021 Dec 2021 2022 Dec 2022 2023 Dec 2023 2024 Dec 2024 2025 Dec 2025 LTM Sept 2026
Income
Revenue 264 337 417 462 509 590 683 762 888 892 911 1,018 1,212 1,318 1,433 1,497 1,746 1,748
Gross profit 173 208 252 304 352 405 469 523 609 590 601 707 875 949 1,054 1,107 1,324 1,326
EBITDA 45 9 28 50 78 75 88 75 118 8 −113 −122 −66 −91 100 141 277 187
Operating income 42 −3 10 31 58 52 65 51 93 −17 −135 −144 −95 −109 81 124 263 173
Net income 32 −6 10 22 38 33 36 45 99 11 −90 −61 −63 −346 68 99 393 295
Diluted EPS $0.21 −$0.04 $0.07 $0.14 $0.24 $0.21 $0.23 $0.28 $0.59 $0.07 −$0.57 −$0.38 −$0.39 −$2.11 $0.37 $0.55 $2.13 $1.68
Growth (year on year)
Revenue — +27.5% +23.8% +10.8% +10.2% +15.9% +15.7% +11.7% +16.6% +0.4% +2.2% +11.6% +19.1% +8.8% +8.7% +4.5% +16.6% +0.9%
EBITDA — −78.9% +197.2% +78.8% +56.3% −4.1% +17.2% −14.8% +57.6% −93.0% — — — — — +41.9% +95.7% −40.8%
Operating income — −106.2% — +199.5% +84.9% −11.3% +25.5% −21.7% +84.0% −118.3% — — — — — +53.0% +112.4% −42.7%
Net income — −118.3% — +116.3% +74.0% −12.6% +9.2% +23.9% +118.9% −89.2% — — — — — +46.3% +296.7% +6.0%
Diluted EPS — −118.8% — +115.4% +75.0% −14.3% +9.5% +21.7% +112.5% −89.1% — — — — — +48.6% +287.3% —
Margins
Gross margin 65.6% 61.8% 60.4% 65.9% 69.1% 68.6% 68.7% 68.6% 68.5% 66.2% 66.0% 69.4% 72.2% 72.0% 73.6% 73.9% 75.9% 75.9%
EBITDA margin 16.9% 2.8% 6.7% 10.8% 15.4% 12.7% 12.9% 9.8% 13.3% 0.9% −12.5% −12.0% −5.5% −6.9% 7.0% 9.4% 15.9% 10.7%
Operating margin 15.8% −0.8% 2.5% 6.8% 11.4% 8.7% 9.5% 6.6% 10.5% −1.9% −14.8% −14.1% −7.8% −8.3% 5.7% 8.3% 15.1% 9.9%
Net margin 12.2% −1.8% 2.4% 4.7% 7.5% 5.6% 5.3% 5.9% 11.1% 1.2% −9.9% −6.0% −5.2% −26.2% 4.7% 6.6% 22.5% 16.9%
Free-cash-flow margin 16.5% 3.8% 7.2% 4.3% 14.8% 15.6% 8.3% 2.7% 16.3% 10.4% −5.8% −2.5% 2.4% −1.0% 14.0% 22.6% 28.1% 25.3%
Cash flow
Cash from operations 50 18 40 44 81 103 68 40 158 104 −42 −1 39 22 218 346 505 463
Capital spending 6 6 10 24 6 11 11 19 14 12 11 25 10 35 17 8 15 20
Free cash flow 44 13 30 20 75 92 57 21 144 92 −53 −26 29 −13 201 338 491 442
Stock-based pay 5 7 9 12 13 19 30 41 53 64 81 103 116 122 143 143 155 145
Free cash flow after stock pay 39 6 21 8 62 73 27 −20 91 29 −134 −129 −87 −135 58 195 335 297
Balance sheet
Cash 64 71 60 78 80 115 93 71 162 114 68 172 160 145 230 337 212 202
Total debt 0 0 0 0 0 0 0 0 0 0 0 518 591 594 499 467 — 0
Net debt (negative = net cash) −64 −71 −60 −78 −80 −115 −93 −71 −162 −114 −68 346 431 449 269 130 −212 −202
Diluted shares 152m 148m 158m 155m 156m 157m 158m 159m 166m 166m 158m 161m 163m 164m 170m 179m 185m 176m
Returned to shareholders
Dividends 4 4 4 6 3 7 9 9 9 9 9 10 10 10 10 10 15 20
Buybacks 12 8 5 5 12 15 23 27 4 54 22 28 53 26 0 68 500 538
Total returned 17 13 9 11 16 22 32 36 14 64 32 38 62 36 10 78 515 558

Source: SEC EDGAR XBRL company facts (US and foreign periodic filings); column headings link to the filing. EBITDA is operating income plus depreciation and amortisation. Free cash flow is cash from operations minus capital spending. Growth is left blank when last year's figure was a loss or under 2% of revenue. Share counts and EPS are restated for stock splits. A dash means the company didn't report the figure.

Financial health

3 of 3 checks passed · September 30, 2026
What it owns · $1.3bn
Short-term assets $704mLonger-term assets $626m
What it owes, and who funded it · $1.3bn
Short-term liabilities $679mLonger-term liabilities $102mShareholders' equity $549m
  • Short-term assets cover short-term liabilities $704m of assets due within a year against $679m of liabilities due within a year.
  • Short-term assets cover long-term liabilities $704m short-term assets against $102m of longer-dated liabilities.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Equity or debt not reported. Not assessable.
  • Debt burden no higher than five years ago Five-year comparison not available. Not assessable.
  • A year's operating cash flow covers at least 20% of debt Cash flow or debt not reported. Not assessable.
  • Operating profit covers interest at least five times over Operating income of $173m against $266,000 of interest.

From Pegasystems Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Dividends, buybacks and capital spending

FY2026 Q3 TTM
Buybacks (TTM)
$538M
Dividends (TTM)
$20.2M
Returned to shareholders
126%
of free cash flow
Buybacks, last 3 fiscal years
$568M
Total shareholder yield
9.9%
dividends 0.4% + buybacks 9.5% of market value
Dividend payout ratio
7%
of net income paid out
R&D spending
18.4%
of revenue
Days sales outstanding
27 days
receivables vs revenue

Competitors: side by side with peers

Closest by revenue in application software
Last 12 months unless stated PEGA YMM PCTY PATH ESTC ACIW Median
Revenue, last 12 months $1.7bn $1.7bn $1.8bn $1.7bn $1.8bn $1.8bn $482m
Revenue growth, last 12 months 0.9% 11.3% 11.0% 15.0% 16.2% 7.0% 12.0%
Revenue growth, 3-year average 8.9% — 14.7% 14.4% 17.4% 9.9% 11.1%
Revenue growth, latest quarter 3.1% — 11.0% 13.4% 15.1% 7.3% 11.9%
Gross margin 75.9% 63.0% 69.2% 82.6% 75.5% 49.1% 69.2%
Operating margin 9.9% 33.2% 21.8% 8.9% −2.6% 18.6% 1.1%
Operating margin, 3-year average 12.2% — 19.8% −2.7% −4.8% 19.3% −0.8%
Net margin 16.9% 35.7% 15.2% 21.0% 20.8% 12.4% 2.1%
Cash from operations / revenue 26.5% 37.0% 30.1% 21.7% 19.6% 18.1% 18.2%
Free-cash-flow margin 25.3% 36.0% 28.1% 21.1% 19.4% 17.1% 15.0%
Free-cash-flow margin, 3-year average 24.0% — 26.5% 21.8% 17.2% 17.6% 16.2%
Stock pay / revenue 8.3% 2.3% 7.8% 13.6% 16.8% 4.3% 9.3%
Change in share count 4.1% 0.1% −3.1% −2.5% 2.2% −3.1% 2.2%

Median of all 185 companies we cover in application software. Shaded: best of the six on that line (lowest for stock pay and share-count growth). 3-year figures average the last three 12-month periods; 3-year growth is compound annual. Source: SEC filings.

Peer comparison

185 application software companies
Measure Company Peer median Rank
Revenue growth Growth 0.9% 12.0% 151 of 184
Change in growth rate Growth -2.7pp +0.2pp 142 of 184
Gross margin Profitability 75.9% 69.8% 56 of 160
Operating margin Profitability 9.9% 1.1% 57 of 181
Net margin Profitability 16.9% 2.1% 37 of 185
Free-cash-flow margin Cash generation 25.3% 15.2% 54 of 180
Stock pay as % of revenue Cash generation 8.3% 9.3% 80 of 177
Days sales outstanding Balance sheet 27 days 57 days 31 of 162

Rank 1 = best in the group (for spending, debt and dilution, lower ranks first).

Where the revenue comes from

Fiscal year to December 31, 2025
Products and services
Line of business Revenue Share YoY
Subscription $1.5B 86.9% ▲ 18.2%
Subscription Services $1B 66.6% ▲ 14.6%
Subscription License $507M 33.4% ▲ 26.3%
Consulting $228M 13.1% ▲ 6.9%
Geography
Region Revenue Share YoY
United States $956M 54.8% ▲ 15.4%
EMEA $271M 15.5% ▲ 8.5%
Asia Pacific $214M 12.2% ▲ 28.7%
United Kingdom $190M 10.9% ▲ 20.4%
Other Americas $115M 6.6% ▲ 20.4%

From Pegasystems Inc's 10-K filed February 10, 2026, as tagged in the filing. View filing. Indented rows are part of the line above; their share is of that line. In the bars, the faint bar behind is the year before.

Who owns it

Funds buying and selling
Reported value
$2.9B
Institutions reporting
434
Shares held vs prior quarter
▲ 2.6%
Positions opened / closed
60 / 109

Top buyers and sellers, Q2 2026: 234 institutions bought and 266 sold ; the biggest buyer was Lynrock Lake LP (+1.8M shares) and the biggest seller Wellington Management Group LLP (−1.7M). See which funds bought and sold →

Largest reported holders, June 30, 2026
Manager Value Shares Share of 13F value Shares QoQ
Blackrock, Inc. $287M 9.6M 10.0% ▼ 0.7%
Vanguard Portfolio Management LLC $193M 6.5M 6.8% ▲ 1.5%
AQR Capital Management LLC $147M 4.9M 5.2% ▲ 8.4%
Vanguard Capital Management LLC $124M 4.1M 4.3% ▼ 0.8%
Massachusetts Financial Services Co $91.4M 3.0M 3.2% ▲ 27.5%
First Trust Advisors LP $88.7M 3.0M 3.1% ▲ 44.4%
State Street Corp $87.9M 2.9M 3.1% ▲ 2.7%
Dimensional Fund Advisors LP $80.4M 2.7M 2.8% ▲ 6.5%
Geode Capital Management, LLC $77.5M 2.6M 2.7% ▲ 2.6%
Arrowstreet Capital, Limited Partnership $60.5M 2.0M 2.1% ▲ 226.2%
Lynrock Lake LP $53.4M 1.8M 1.9% New
Invesco Ltd. $47.8M 1.6M 1.7% ▲ 51.6%

From Form 13F filings with the SEC ( quarterly data sets), as reported by each manager for June 30, 2026 and filed up to 45 days later. 13F reports cover long US-listed positions of managers above $100M only, so this is not Pegasystems Inc's complete shareholder register. Values are as reported by the filers .

Insider trading activity

Full insider history and chart
Insider purchases History → $0 0 trades by 0 insiders, last 12 months Insider sales History → $25M 53 trades by 7 insiders · 68% under pre-set plans
Net ▼ $25M net selling
Insider Date Trade Shares Price Value
Weber Larry Director October 29, 2026 Sell 2,974 $33.71 $100,254
Akgonul Rifat Kerim Chief Product Officer October 28, 2026 Sell 7,084 $35.22 $249,499
Ledingham Dianne Director October 1, 2026 Sell pre-set plan 1,000 $34.15 $34,150
Kouninis Efstathios A SVP, Chief Accounting Officer September 16, 2026 Sell 982 $37.35 $36,678
Ledingham Dianne Director September 15, 2026 Sell pre-set plan 1,000 $38.00 $38,000
Stillwell Kenneth COO, CFO September 11, 2026 Sell 39,627 $35.77 $1.4M
Akgonul Rifat Kerim Chief Product Officer September 11, 2026 Sell 7,000 $36.03 $252,210
Kouninis Efstathios A SVP, Chief Accounting Officer September 3, 2026 Sell 1,063 $38.75 $41,191
Kouninis Efstathios A SVP, Chief Accounting Officer August 31, 2026 Sell 1,012 $36.50 $36,938
Akgonul Rifat Kerim Chief Product Officer August 25, 2026 Sell 1,300 $34.00 $44,200
Akgonul Rifat Kerim Chief Product Officer August 25, 2026 Sell 1,700 $33.98 $57,766
Kouninis Efstathios A SVP, Chief Accounting Officer August 10, 2026 Sell 860 $33.10 $28,466

From insiders' Form 4 filings with the SEC. Excludes awards, option exercises and shares withheld for tax. "Pre-set plan" means the filing marks the trade as made under a Rule 10b5-1 plan. See every insider trade since five years ago, on a price chart.

Trades by members of Congress

All 4 trades and filings

No trades in Pegasystems Inc disclosed in the last 12 months; 4 earlier trades on record.

  • Greg Gianforte(MT):Sale (partial), $1,001 - $15,000, traded October 13, 2020, filed November 9, 2020
  • Greg Gianforte(MT):Purchase, $500,001 - $1,000,000, traded October 11, 2019, filed November 27, 2019
  • Greg Gianforte(MT):Sale (full), $100,001 - $250,000, traded September 10, 2019, filed October 20, 2019

Value ranges as filed; reports can arrive up to 45 days after a trade.

Earnings dates and SEC filings

Results announcements

Next expected around February 9, 2027 estimated from the company's past filing pattern, not announced

  • October 20, 2026
  • July 21, 2026
  • April 21, 2026
  • February 10, 2026
  • October 21, 2025
  • July 22, 2025

Recent SEC filings

Data status

When each part of this page on Pegasystems Inc was last updated.

DataLast updatedSource
Share priceExchange closing prices
Financial statementsSEC 10-K and 10-Q filings
News and updatesCompany releases and SEC 8-K filings
Analyst estimatesAggregated analyst estimates
Valuation and scoresOur models, from the filed figures

How we build and check these figures: methodology and data sources.

Pegasystems Inc in brief

What does Pegasystems Inc do?
Pegasystems Inc is a US-listed company in the application software industry. Its financial year ends in December.
What is Pegasystems Inc's stock ticker?
Pegasystems Inc trades under the ticker PEGA on Nasdaq. This page brings together its financial statements, valuation models, ownership and recent company updates.
What is Pegasystems Inc's revenue, and how fast is it growing?
Over its most recent trailing twelve months, Pegasystems Inc reported revenue of $1.7B, 0.9% higher than a year earlier, according to its SEC filings.
What is Pegasystems Inc's free cash flow?
Pegasystems Inc's free-cash-flow margin is 25.3% of revenue over the trailing twelve months, ranking 54 of the 180 application software companies we cover.
What is Pegasystems Inc's fair value (intrinsic value) per share?
Our discounted-cash-flow model of Pegasystems Inc's free cash flow after stock-based pay gives ~$35 per share in the base case, and ~$27–$46 across growth scenarios. These are model values under stated assumptions — not a price target or a recommendation.
Who are Pegasystems Inc's largest institutional shareholders?
By value reported in 13F filings for June 30, 2026, the largest reported holders are Blackrock, Inc., Vanguard Portfolio Management LLC and AQR Capital Management LLC. 13F reports cover long US-listed positions of managers above $100M, filed up to 45 days after quarter end.
What is Pegasystems Inc's market cap?
On November 2, 2026, Pegasystems Inc's market capitalisation was about $6.1B, with a price-to-earnings ratio of 20.6 and net debt of -$202M. Market figures come from third-party market data and may be delayed.
Does Pegasystems Inc pay a dividend?
Yes: Pegasystems Inc paid $20.2M in dividends over the trailing twelve months, a dividend yield of 0.36% and a payout ratio of 6.9%.
Who are Pegasystems Inc's competitors?
In our Application Software peer group, the companies closest to Pegasystems Inc are Full Truck Alliance Co. Ltd., Paylocity Holding Corp, Uipath, Inc., Elastic N.V. and ACI Worldwide, Inc. The side-by-side comparison below sets their revenue, margins and growth against Pegasystems Inc's.
Are insiders buying or selling Pegasystems Inc stock?
Over the last 12 months, Pegasystems Inc's directors and officers reported 0 open-market purchases and 53 sales on Form 4. The insider trading page charts every trade.
When is Pegasystems Inc's next earnings date?
Around February 9, 2027, estimated from the spacing of its past results announcements (8-K filings). That is an estimate, not a confirmed date — Pegasystems Inc announces its own schedule.