| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 429.97 | 9.6% |
| Total Income | 429.97 | 9.6% |
| Expenditure | 392.82 | 12.7% |
| PBT | 39.71 | 68.6% |
| Net Profit | 32.76 | 61.6% |
| OPM | 8.64% | 18.06pp |
| NPM | 7.62% | 10.34pp |
| EPS | 0.19 | 80.8% |
Pegasystems Reports Q1 2026; Pega Cloud ACV Increases 29% Y/Y
22 Apr 2026 · 22 Apr, 1:40 am
Summary
Pegasystems Inc. reported its financial results for the first quarter of 2026. Pega Cloud ACV increased by 29% year-over-year. Total revenue for the quarter was $429.97 million, representing a 10% decrease compared to the prior year. GAAP net income decreased by 62% to $32.76 million, while non-GAAP net income decreased by 41% to $83.07 million. Management is focused on driving ACV growth and expanding cash flow margins.
Key Highlights
- 1
Pega Cloud Annual Contract Value (ACV) increased 29% year over year, or 27% in constant currency, for Q1 2026.
- 2
Overall ACV grew 12% year over year, or 11% in constant currency.
- 3
Cash flow from operations exceeded $200 million in Q1 2026.
- 4
Free cash flow also exceeded $200 million during the first quarter of 2026.
- 5
Total revenue was $429.97 million, a decrease of 10% compared to the same period last year.
- 6
GAAP net income was $32.76 million, a decrease of 62% year over year.
- 7
Non-GAAP net income was $83.07 million, a decrease of 41% compared to Q1 2025.
Management Comments
Alan Trefler
Pega’s Blueprint AI helps enterprises reimagine their businesses while Pega’s powerful workflow engine provides the harness that ensures predictable outcomes. We continue to be differentiated in the market and of great value as enterprises recognize the need for a sustainable AI architecture.
Ken Stillwell
As enterprises move past the experimental phase of AI and demand real ROI, Pega's proven ability to generate measurable value allows us to showcase the financial impact we provide to our clients. This positions us well to drive ACV growth and expand cash flow margins.
Informational and educational content only. Not investment advice.