# Pegasystems Inc. (PEGA)

> Source: Nexqual · https://nexqual.com/PEGA · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Pegasystems Inc. (PEGA), nexqual.com/PEGA" · informational, not investment advice.

**Price:** USD 36.65 (+4.18% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 35.18 · day 35.5–37.3 · 52w 25.1–68.1 · market cap $6.03B · NMS

## Key facts
- Last four reported quarters (through Sep 30, 2026): revenue $1.75B, net income $295M (16.9% margin), free cash flow $442M (SEC filings).
- Valuation: P/E 20.4x (avg 57.8x at the last 3 fiscal year-ends).
- Analysts: Buy (mean 2.40 on a 1–5 scale) (10 analysts), mean target USD 41 (range 35–50).
- Total return with dividends: 1Y -43.9% vs S&P 500 +14.9%; 5Y -42.2% vs S&P 500 +80.3%.
- Next earnings: 2026-10-20, EPS estimate USD 0.91, revenue estimate $543M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.21B | $1.32B | $1.43B | $1.50B | $1.75B | $1.75B |
| Gross profit | $875M | $949M | $1.05B | $1.11B | $1.32B | — |
| Operating income | -$94.7M | -$109M | $81.0M | $124M | $263M | $173M |
| Net income | -$63.0M | -$346M | $67.8M | $99.2M | $393M | $295M |
| EPS (diluted) | -$0.39 | -$2.11 | $0.37 | $0.55 | $2.13 | — |
| Free cash flow | $28.7M | -$13.0M | $201M | $338M | $491M | $442M |
| Gross margin | 72.2% | 72.0% | 73.6% | 73.9% | 75.9% | — |
| Operating margin | -7.8% | -8.3% | 5.7% | 8.3% | 15.1% | 9.9% |
| Net margin | -5.2% | -26.2% | 4.7% | 6.6% | 22.5% | 16.9% |
| Revenue growth | +19.1% | +8.8% | +8.7% | +4.5% | +16.6% | — |
| Cash + short-term investments | $363M | $297M | $423M | $740M | $426M | — |
| Total debt | $591M | $594M | $499M | $0K | — | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Sep 30, 2026)
P/E 20.4x · P/S 3.5x · P/FCF 13.6x · P/B 11.0x · FCF yield 7.34% · Earnings yield 4.89% · Dividend yield (paid, TTM) 0.34% · Buyback yield (TTM) 8.92%
P/E at fiscal year-ends: Dec 2025 28.0x, Dec 2024 84.2x, Dec 2023 61.2x.

## Analysts
Consensus Buy (mean 2.40 on a 1–5 scale), 10 analysts; mean target USD 41 (low 35, high 50).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | Citigroup | Target lowered | Buy | $52 → $50 |
| 2026-10-22 | Barclays | Target lowered | Overweight | $43 → $42 |
| 2026-10-22 | RBC Capital | Target raised | Outperform | $35 → $40 |
| 2026-10-22 | Rosenblatt | Target lowered | Buy | $47 → $43 |
| 2026-10-15 | Rosenblatt | Maintained | Buy | $47 |
| 2026-10-13 | Citigroup | Target lowered | Buy | $55 → $52 |
| 2026-10-13 | Barclays | Target raised | Overweight | $39 → $43 |
| 2026-09-28 | DA Davidson | Downgrade | Buy → Neutral | $32 |
| 2026-09-17 | JP Morgan | Downgrade | Overweight → Neutral | $54 → $47 |
| 2026-07-25 | DA Davidson | Target lowered | Buy | $55 → $32 |
| 2026-07-23 | RBC Capital | Target lowered | Outperform | $60 → $35 |
| 2026-07-23 | Barclays | Target lowered | Overweight | $48 → $39 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | -43.9% | -42.2% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | -44.0% | -10.3% |
| Volatility (annualized) | 51.9% | 50.7% |
| Max drawdown | -60.9% (Oct 2025→Jul 2026) | -75.8% (Oct 2021→Oct 2022) |

## Peers (Software - Application)
APPF (AppFolio, Inc.) USD 217.33 +0.06% · DSGX (The Descartes Systems Group Inc) USD 94 +1.74% · TTAN (ServiceTitan, Inc.) USD 85.2 +3.50% · IDCC (InterDigital, Inc.) USD 332.06 -0.78% · YMM (Full Truck Alliance Co. Ltd.) USD 8.35 -1.76% · PCOR (Procore Technologies, Inc.) USD 62.29 +2.27%

## More
Full page: https://nexqual.com/PEGA · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-09-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Subscription | $347.2M | 88.3% | +6.8% |
| — Subscription services (part of Subscription) | $291.6M | 74.1% | +10.4% |
| — Subscription license (part of Subscription) | $55.6M | 14.1% | -8.5% |
| Consulting | $46.2M | 11.7% | -18.1% |
| Total revenue | $393.4M | 100% | — |

## Revenue by region (quarter ended 2026-09-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| U.S. | $175.7M | 44.7% | -5.1% |
| Asia-Pacific | $73.0M | 18.6% | +32.3% |
| Europe (excluding U.K.), Middle East, and Africa | $69.3M | 17.6% | +7.6% |
| United Kingdom (“U.K.”) | $45.3M | 11.5% | -14.8% |
| Other Americas | $30.0M | 7.6% | +27.8% |
| Total revenue | $393.4M | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-12-31) | $0.91 | $1.11 | -17.6% | $543.4M | 10 |
| Next quarter (ends 2027-03-31) | $0.55 | $0.55 | -0.2% | $453.4M | 10 |
| Current fiscal year (ends 2026-12-31) | $2.11 | $2.46 | -14.2% | $1.79B | 10 |
| Next fiscal year (ends 2027-12-31) | $2.37 | $2.64 | -9.9% | $1.90B | 10 |

## Options: expected move (Cboe, 15-min delayed)

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 49.4% | ±11.5% |
| 2026-12-18 | 56 | 51.2% | ±16.4% |
| 2027-01-15 | 84 | 50.6% | ±19.4% |
| 2027-03-19 | 147 | 56.6% | ±28.2% |
| 2027-06-17 | 237 | 58.1% | ±36.3% |