PEGA
Pegasystems (NASDAQ: PEGA) fell about 15% following the release of its second quarter 2026 results, after...
Article Summary
HOLD- Pegasystems (NASDAQ: PEGA) fell about 15% following the release of its second quarter 2026 results, after the enterprise software company missed Wall Street expectations on both earnings and revenue.
- Pegasystems reported adjusted earnings per share of $0.35 for the quarter below analyst estimates, with revenue coming in at $420.7 million, compared with consensus expectations of $427.4 million.
- Revenue increased 9% year over year from $384.5 million driven by growth in subscription-related businesses, with Pega Cloud revenue rising 28% and subscription services revenue increasing 17%.
- The company highlighted growth in annual contract value (ACV), with total ACV increasing 7% year-over-year to $1.62 billion or 8% on constant currency basis, and highlighted strong cash generation during the first half of the year with operating cash flow reaching $298 million and free cash flow totaling $288 million.
Free users see 3 BUY signals per day. Premium unlocks all of them, plus instant email alerts.
See Plans
Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 3.6% | 25% | 20.0 ptsMinimal (3.6%) - Very weak |
| EPS Growth Next 5Y ? | 14.1% | 25% | 35.0 ptsBelow Screener (14.1%) - Modest outlook |
| Target Price Upside ? | 121.7% | 20% | 100.0 ptsMassive Upside (121.7%) - Target: $57.62 vs Current: $25.99 |
| Gross Margin % ? | 75.5% | 15% | 100.0 ptsExceptional (75.5%) - Strong pricing power |
| Drawdown from 52-Wk High ? | -61.8% | 15% | 100.0 ptsDeep Discount (-61.8%) - Best entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About PEGA
- Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software 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 Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; 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; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows.
- The company also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services.
- It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries 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 Waltham, Massachusetts.