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PEGAPegasystems Inc.
$32.21$5.4B
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PEGA logoPegasystems Inc.(PEGA)Earnings, Financials & Key Ratios

PEGA•NASDAQ
$32.21
15.1× P/E·Price updated Jul 7, 2026
SectorTechnologyIndustryApplication SoftwareSub-IndustryCRM and customer engagement software
AboutPegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Platform, an application development product for clients; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. The company also offers customer engagement applications, including Pega Customer Decision Hub that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. In addition, it provides intelligent automation software; Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. The company primarily markets its software and services to financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.Show more
  • Revenue$1.75B+16.6%
  • EBITDA$289M+81.4%
  • Net Income$393M+296.7%
  • EPS (Diluted)2.13+287.3%
  • Gross Margin75.86%+2.6%
  • EBITDA Margin16.55%+55.6%
  • Operating Margin15.07%+82.1%
  • Net Margin22.54%+240.2%
  • ROE57.32%+171.4%

PEGA Price & Volume

Pegasystems Inc. (PEGA) stock price & volume — 10-year historical chart

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Cloud Transition Volatility Masks Improving Financial Health

Investment Thesis • Updated 2026Q1

VerdictNeutral
Growth:Mixed
Profitability:Moderate
Financial:Healthy
Cash Flow:Improving
Primary Risk:Cloud transition revenue volatility

Key Thesis Takeaways

  • Pegasystems is successfully navigating a multi-year cloud transition, evidenced by a dramatic reduction in total debt from $581.3 million in 2023Q4 to $57.1 million in 2026Q1.
  • While revenue growth remains seasonally volatile with a 9.6% year-over-year decline in 2026Q1, the company's pivot toward a ratable subscription model is yielding a stronger balance sheet and positive retained earnings of $491.1 million.
  • Investors should monitor the persistent impact of stock-based compensation, which exceeded $45 million in 2026Q1, as it continues to obscure the true cash cost of operations despite aggressive share repurchases.

Verdict Logic

while the company has successfully eliminated its reliance on debt, the current P/E of 14.45 and the ongoing dilution from $45.8 million in quarterly stock-based compensation warrant a cautious approach until revenue growth stabilizes.

PEGA Growth Metrics

Pegasystems Inc. (PEGA) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years9.84%
5 Years11.4%
3 Years9.83%
TTM3.5%

Profit CAGR

10 Years26.9%
5 Years-
3 Years-
TTM73.22%

EPS CAGR

10 Years24.93%
5 Years-
3 Years-
TTM81.75%

Return on Capital

10 Years3.49%
5 Years7.64%
3 Years19.32%
Last Year33.38%

PEGA Recent Earnings

Pegasystems Inc. (PEGA) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 9/12 qtrs (75%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
Apr 21, 2026
Metric
Actual
Est
EPS
$0.46-29.1%
$0.65
Rev
$430M-5.6%
$456M
Q1 2026
Feb 10, 2026
Metric
Actual
Est
EPS
$0.76+5.6%
$0.72
Rev
$504M+2.5%
$492M
Q4 2025
Oct 21, 2025
Metric
Actual
Est
EPS
$0.30+66.7%
$0.18
Rev
$381M-22.9%
$495M
Q3 2025
Jul 22, 2025
Metric
Actual
Est
EPS
$0.28+14.7%
$0.24
Rev
$385M+6.3%
$362M
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestApr 21, 2026
$0.46vs $0.65-29.1%
$430Mvs $456M-5.6%
Q1 2026Feb 10, 2026
$0.76vs $0.72+5.6%
$504Mvs $492M+2.5%
Q4 2025Oct 21, 2025
$0.30vs $0.18+66.7%
$381Mvs $495M-22.9%
Q3 2025Jul 22, 2025
$0.28vs $0.24+14.7%
$385Mvs $362M+6.3%
Based on last 12 quarters of dataView full earnings history →

Latest PEGA News

Recent stock market news and headlines for Pegasystems Inc. (PEGA)

Seeking Alpha·Jun 27, 2026
Pegasystems: As The AI Era Grows, So Could This Software Stock With It

Pegasystems earns a buy rating for its strong capital growth and dividend potential, supported by robust cash flow, AI-driven products, and minimal leverage. PEGA leads its peer group with a 51% ROE and demonstrates a compelling recovery in margins and EPS, with analyst consensus forecasting 29% EPS growth this year. While the stock remains in a bearish technical trend and underperforms the S&P500, its low D/E ratio, asset-light model, and undervalued forward P/E present an attractive risk-reward profile.

Business Wire·Jun 15, 2026
Pega Announces Quarterly Cash Dividend for Third Quarter of 2026

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the enterprise AI software company for mission-critical work, today announced a quarterly cash dividend of $0.03 per share, maintaining the company's current dividend program. The Q3 2026 dividend will be paid on July 15, 2026, to shareholders of record as of July 1, 2026. About Pega Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI with pro.

Peers Comparison

Key metrics vs top competitors for Pegasystems Inc. (PEGA)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
PEGA logoPEGAPegasystems Inc.Current
$32.21$5.44B15.1216.61%22.54%57.32%0.26%
APPN logoAPPNAppian Corporation
$24.68$1.83B1495.7617.81%0.12%——
AGYS logoAGYSAgilysys, Inc.
$112.83$3.18B82.9615.85%12.15%12.72%—
POWI logoPOWIPower Integrations, Inc.
$66.84$3.72B171.375.85%3.72%2.44%—
NICE logoNICENICE Ltd.
$98.63$5.98B10.207.68%17.58%13.98%—
CRM logoCRMSalesforce, Inc.
$169.52$138.84B21.739.58%18.73%14.95%—

Compare PEGA vs Peers

Pegasystems Inc. (PEGA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs APPN

Most directly comparable listed peer for PEGA.

Scale Benchmark

vs GOOGL

Larger-name benchmark to compare PEGA against a more recognizable public peer.

Peer Set

Compare Top 5

vs APPN, AGYS, POWI, NICE

PEGA SEC Filings & Documents

Pegasystems Inc. (PEGA) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Apr 21, 2026·SEC

Material company update

Feb 12, 2026·SEC

Material company update

Feb 10, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 10, 2026·SEC

FY 2025

Feb 12, 2025·SEC

10-Q Quarterly Reports

3
FY 2026

Apr 21, 2026·SEC

FY 2025

Oct 21, 2025·SEC

FY 2025

Apr 22, 2025·SEC

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PEGA Frequently Asked Questions

Pegasystems Inc. (PEGA) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Pegasystems Inc.'s revenue?

Pegasystems Inc. (PEGA) reported $1.70B in revenue for fiscal year 2025. This represents a 4975% increase from $33.5M in 1996.

How fast is Pegasystems Inc. growing?

Pegasystems Inc. (PEGA) grew revenue by 16.6% over the past year. This is strong growth.

Is PEGA profitable?

Yes, Pegasystems Inc. (PEGA) is profitable, generating $340.8M in net income for fiscal year 2025 (22.5% net margin).

Dividend & Returns
Does PEGA pay dividends?

Yes, Pegasystems Inc. (PEGA) pays a dividend with a yield of 0.26%. This makes it attractive for income-focused investors.

What is PEGA's return on equity?

Pegasystems Inc. (PEGA) has a return on equity (ROE) of 57.3%. This is excellent, indicating efficient use of shareholder capital.

What is Pegasystems Inc.'s free cash flow?

Pegasystems Inc. (PEGA) generated $494.9M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in PEGA back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →