Pegasystems (PEGA) Q3 2026 Earnings

No. Pegasystems reported Q3 2026 earnings of $0.35 a share on Oct 20, 2026, missing the $0.49 consensus estimate by 27.8%. Revenue was $393.4M against a $421.8M estimate.

Pegasystems delivered a disappointing third quarter, missing on both the top and bottom lines as go-to-market execution challenges weighed heavily on results. The enterprise software company posted adjusted EPS of $0.35, falling short of the $0.49 consensus estimate by 27.85%, while revenue of $393.36 million trailed expectations by 6.75% and grew just 3.1% year over year, well below the double-digit growth analysts had anticipated. The softer print reflected a slowdown in ACV growth through the first nine months of 2026, as clients subjected large technology investments to greater scrutiny amid AI-driven industry disruption, a dynamic management acknowledged could persist through year-end. Bright spots included Pega Cloud revenue surging 19% to $218.93 million and total ACV rising 6% to $1.65 billion, but a $16.00 million litigation settlement charge compounded the pressure on GAAP results. The stock had attracted bullish analyst attention heading into the print, making the miss particularly jarring. CFO Ken Stillwell reaffirmed the company's target of $700 million or more in free cash flow by 2028, signaling confidence in the longer-term trajectory despite near-term headwinds.