PEGASYSTEMS INC

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.

Pegasystems reported Q2 2026 revenue of $420.7 million, a 9.4% increase year-over-year, but net income significantly declined by 55.7% to $13.3 million. Diluted EPS also fell by 52.9% to $0.08. For the first six months of 2026, the company's net income decreased by 60.1% to $46.1 million. The company also repurchased $367.7 million of common stock and provided an update on the Appian lawsuit, with a retrial set for January 2027 and the $25 million letter of credit released.

Pegasystems Inc. announced its Q2 2026 financial results, reporting strong cash flow generation with both cash flow from operations and free cash flow exceeding $285 million in the first half of 2026. Pega Cloud Annual Contract Value (ACV) increased by 22% year-over-year, contributing to a total ACV growth of 7% (8% in constant currency). However, GAAP net income for the quarter decreased by 56% to $13.3 million, and the company noted that unprecedented changes in the AI market led clients to delay purchasing decisions, significantly slowing ACV growth.

Pegasystems Inc. presented to investors, detailing its business model transformation, which has led to significant free cash flow growth and improved profitability. The company highlighted its achievement of the Rule of 40, accelerated Pega Cloud ACV growth, and a disciplined capital allocation strategy focused on increasing shareholder returns through dividends and opportunistic share buybacks. The presentation outlined long-term financial targets, including continued margin expansion and robust free cash flow generation.

PEGASYSTEMS INC. will hold its 2026 Annual Meeting of Shareholders on June 16, 2026, in Waltham, Massachusetts. Shareholders will vote on the election of eight director nominees, an advisory resolution on executive compensation, and the ratification of Deloitte & Touche LLP as the independent auditor. The company reported strong 2025 financial results, exceeding targets with 14% constant currency ACV growth and a Rule of 40 calculation exceeding 40, leading to above-target executive compensation.

Pegasystems Inc. announced its 2026 Annual Meeting of Shareholders will be held on June 16, 2026, in Waltham, Massachusetts. Shareholders will vote on the election of eight director nominees, an advisory resolution on executive compensation, and the ratification of Deloitte & Touche LLP as the independent auditor for fiscal year 2026. The company reported strong financial results for 2025, with Annual Contract Value growth of 14% on a constant currency basis and its Rule of 40 calculation exceeding 40, leading to above-target executive compensation.

PEGASYSTEMS INC. has filed its Quarterly Report on Form 10-Q for the period ended March 31, 2026. The filing confirms the company's status as a large accelerated filer and includes the unaudited condensed consolidated financial statements and other required disclosures for the quarter. As of April 13, 2026, the company had 167,657,568 shares of common stock outstanding.

Pegasystems Inc. announced its financial results for the first quarter of 2026, showcasing robust growth in its cloud business. The company reported a 29% year-over-year increase in Pega Cloud Annual Contract Value (ACV), or 27% in constant currency. Overall ACV grew by 12% year-over-year (11% in constant currency), and both cash flow from operations and free cash flow surpassed $200 million.