Quarterly ResultOct 20, 2026, 04:16 PM
Pega Q3 ACV Up 6% to $1.65B; GAAP Net Income Down 68%
AI Summary
Pegasystems Inc. reported its third quarter 2026 financial results, with Pega Cloud ACV growing 20% and total ACV increasing 6% year-over-year. While total revenue saw a modest 3% increase to $393.4 million, GAAP net income declined significantly by 68% to $14.1 million, or $0.08 per diluted share. However, non-GAAP net income rose 8% to $59.8 million, or $0.35 per diluted share. The company cited go-to-market execution challenges for slower ACV growth but is implementing actions to accelerate growth and capitalize on the AI market opportunity. Backlog increased 15% to $2.01 billion.
Key Highlights
- Pega Cloud ACV grew 20% to $976M in Q3 2026.
- Total ACV grew 6% to $1.65B reported, 7% in constant currency.
- Q3 2026 revenue was $393.4M, up 3% YoY.
- Q3 2026 GAAP Net Income decreased 68% to $14.1M ($0.08/share).
- Q3 2026 non-GAAP Net Income increased 8% to $59.8M ($0.35/share).
- Company is taking actions to accelerate growth and capitalize on AI market opportunity.
- Backlog increased 15% to $2.01B.
- Free cash flow for the nine months ended Sep 30, 2026 was $289.8M, down 14% YoY.
Price Impact
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