Pegasystems (NASDAQ:PEGA – Get Free Report) released its quarterly earnings results on Tuesday. The technology company reported $0.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.10), FiscalAI reports. The firm had revenue of $393.36 million during the quarter, compared to analysts’ expectations of $421.06 million. Pegasystems had a return on equity of 32.21% and a net margin of 18.66%. The business’s quarterly revenue was up 3.1% on a year-over-year basis. During the same quarter last year, the business earned $0.30 earnings per share.
Pegasystems Stock Performance
NASDAQ PEGA opened at $36.23 on Wednesday. The business’s fifty day moving average is $34.94 and its 200 day moving average is $34.40. Pegasystems has a fifty-two week low of $25.10 and a fifty-two week high of $68.10. The company has a market capitalization of $5.96 billion, a PE ratio of 29.95 and a beta of 0.89.
Pegasystems Announces Dividend
The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Thursday, October 1st were given a dividend of $0.03 per share. The ex-dividend date was Thursday, October 1st. This represents a $0.12 annualized dividend and a yield of 0.3%. Pegasystems’s payout ratio is 6.78%.
Analyst Ratings Changes
A number of analysts recently commented on the company. Barclays reiterated an “overweight” rating and set a $43.00 price objective (up from $39.00) on shares of Pegasystems in a research report on Tuesday, October 13th. UBS Group cut Pegasystems to a “sell” rating in a research report on Wednesday. Royal Bank Of Canada set a $35.00 target price on Pegasystems and gave the stock an “outperform” rating in a research report on Thursday, July 23rd. DA Davidson downgraded Pegasystems from a “buy” rating to a “neutral” rating and set a $32.00 price target for the company. in a research note on Monday, September 28th. Finally, Citigroup reaffirmed a “market perform” rating on shares of Pegasystems in a research report on Wednesday. Five investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Pegasystems presently has an average rating of “Hold” and an average target price of $45.64.
Check Out Our Latest Stock Report on Pegasystems
More Pegasystems News
Here are the key news stories impacting Pegasystems this week:
- Positive Sentiment: Pega Cloud momentum was a key bright spot: Annual contract value (ACV) for Pega Cloud rose 20% year over year to $976 million, while total ACV increased 6% to $1.65 billion. Pega Cloud represented 59% of total ACV, supporting the company’s transition toward recurring cloud revenue. Pega Cloud ACV Grows 20% in Q3 2026
- Positive Sentiment: Revenue still grew year over year: Third-quarter revenue increased approximately 3% to $393.4 million. Management also reiterated its strategy of using enterprise AI models, including Claude, OpenAI GPT and Gemini, while emphasizing governance, security and cost control. Pegasystems Q3 Revenue Rises 3% to $393.4 Million
- Neutral Sentiment: Investors will look for additional guidance: Pegasystems scheduled its quarterly conference call for October 21, where management may provide more detail on AI demand, cloud adoption, margins and the outlook. Pega Cloud ACV Grows 20% in Q3 2026
- Negative Sentiment: The quarter missed consensus estimates: Adjusted EPS was $0.35, below the $0.45 consensus, while revenue of $393.4 million fell short of expectations near $421 million. Pegasystems Misses Q3 Earnings and Revenue Estimates
- Negative Sentiment: Profitability deteriorated on a GAAP basis: GAAP net income declined 68% year over year to $14.1 million, with diluted EPS falling to $0.08 from $0.25. Six-month insider-trading data also showed selling and no reported purchases, a potential sentiment overhang. Pegasystems Q3 Revenue Rises 3% to $393.4 Million
Insider Buying and Selling
In other news, CFO Kenneth Stillwell sold 39,627 shares of Pegasystems stock in a transaction dated Friday, September 11th. The stock was sold at an average price of $35.77, for a total transaction of $1,417,457.79. Following the transaction, the chief financial officer directly owned 95,225 shares of the company’s stock, valued at $3,406,198.25. The trade was a 29.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Efstathios A. Kouninis sold 982 shares of Pegasystems stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $37.35, for a total value of $36,677.70. Following the transaction, the chief accounting officer directly owned 1,009 shares in the company, valued at approximately $37,686.15. The trade was a 49.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 53,672 shares of company stock worth $1,921,657. Corporate insiders own 48.40% of the company’s stock.
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.
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