Pegasystems (NASDAQ:PEGA) Releases Earnings Results, Misses Estimates By $0.10 EPS

Pegasystems (NASDAQ:PEGA) released its quarterly earnings data on Tuesday. The technology company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.45 by ($0.10), FiscalAI reports. Pegasystems had a return on equity of 33.48% and a net margin of 16.86%. The firm had revenue of $393.36 million for the quarter, compared to analyst estimates of $421.06 million. During the same quarter in the prior year, the firm earned $0.30 earnings per share. The firm’s revenue for the quarter was up 3.1% on a year-over-year basis.

Pegasystems Stock Down 2.9%

NASDAQ PEGA opened at $35.18 on Thursday. The company has a market capitalization of $5.78 billion, a price-to-earnings ratio of 21.85 and a beta of 0.89. Pegasystems has a twelve month low of $25.10 and a twelve month high of $68.10. The stock has a fifty day simple moving average of $35.02 and a 200 day simple moving average of $34.34.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were issued a dividend of $0.03 per share. This represents a $0.12 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend was Thursday, October 1st. Pegasystems’s payout ratio is presently 7.45%.

Key Pegasystems News

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Cloud growth remained a bright spot. Pega Cloud annual contract value (ACV) increased 20% year over year to approximately $976 million, while total ACV rose 6% to about $1.65 billion. Pega Cloud now represents roughly 59% of total ACV. Pega Cloud ACV Grows 20% in Q3 2026
• Positive Sentiment: Management continued returning capital to shareholders. Pegasystems repurchased nearly 11 million shares for approximately $430 million, which could support per-share results over time. Annual contract value reached about $1.66 billion on a constant-currency basis. Pegasystems: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Revenue growth was modest. Third-quarter revenue rose approximately 3% year over year to $393.4 million, and management said third-quarter ACV additions were the strongest of the year. However, year-to-date growth has not fully matched the company’s market opportunity. Pegasystems Q3 Revenue Rises 3% to $393.4 Million
• Negative Sentiment: The earnings miss and margin squeeze drove the negative reaction. Adjusted EPS was $0.35 versus the $0.45 consensus estimate, while revenue of $393.4 million fell short of expectations near $421 million. GAAP net income declined 68% year over year to $14.1 million, with GAAP EPS falling to $0.08 from $0.25. Pegasystems Misses Q3 Earnings and Revenue Estimates
• Negative Sentiment: Execution and demand concerns remain. Analysts highlighted go-to-market challenges, slower customer decision-making and longer deployments as businesses scrutinize large technology purchases amid rapid AI adoption. Commentary that AI is not yet producing enough new wins has increased uncertainty around near-term growth and profitability. PEGA Q3 Deep Dive

Analyst Upgrades and Downgrades

PEGA has been the subject of a number of research reports. William Blair downgraded Pegasystems from an “outperform” rating to a “market perform” rating in a report on Wednesday, July 22nd. Citizens Jmp downgraded shares of Pegasystems from an “outperform” rating to a “market perform” rating in a research note on Wednesday, July 22nd. KeyCorp lowered shares of Pegasystems from an “overweight” rating to a “sector weight” rating in a research report on Wednesday, July 22nd. Loop Capital lowered shares of Pegasystems from a “buy” rating to a “hold” rating and lowered their price target for the stock from $55.00 to $25.00 in a research report on Thursday, July 23rd. Finally, DA Davidson cut shares of Pegasystems from a “buy” rating to a “neutral” rating and set a $32.00 price objective for the company. in a research note on Monday, September 28th. Five research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $45.27.

Insider Buying and Selling

In other news, CFO Kenneth Stillwell sold 39,627 shares of the business’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $35.77, for a total value of $1,417,457.79. Following the transaction, the chief financial officer owned 95,225 shares in the company, valued at approximately $3,406,198.25. The trade was a 29.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Kerim Akgonul sold 7,000 shares of the company’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $36.03, for a total transaction of $252,210.00. Following the sale, the insider directly owned 104,804 shares in the company, valued at $3,776,088.12. This trade represents a 6.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 53,672 shares of company stock valued at $1,921,657 over the last three months. 48.40% of the stock is owned by insiders.

Pegasystems Company Profile

Pegasystems Inc is a software company that develops enterprise applications for customer engagement, workflow automation and business process management. Its technology helps organizations manage customer interactions, automate repetitive work, coordinate complex processes and make data-driven decisions across departments and channels.

The company’s portfolio includes Pega Platform, a low-code application development and workflow platform, along with solutions for customer service, sales automation, marketing, decisioning and artificial intelligence.