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Pegasystems (PEGA) Q1 2026 Earnings
Reported Apr 21, 2026 at 4:10 PM ET · SEC Source
Q1 26 EPS
$0.46
MISS 33.66%
Est. $0.69
Q1 26 Revenue
$430.0M
MISS 7.96%
Est. $467.2M
vs S&P Since Q1 26
-27.8%
TRAILING MARKET
PEGA -22.8% vs S&P +5.0%
Market Reaction
Did PEGA Beat Earnings? Q1 2026 Results
Pegasystems delivered a disappointing first quarter for fiscal 2026, missing Wall Street expectations on both the top and bottom lines as its ongoing cloud transition continued to weigh on reported financials. Revenue fell 9.6% year over year to $429… Read more Pegasystems delivered a disappointing first quarter for fiscal 2026, missing Wall Street expectations on both the top and bottom lines as its ongoing cloud transition continued to weigh on reported financials. Revenue fell 9.6% year over year to $429.97 million, coming in 7.96% below the $467.16 million consensus, while non-GAAP diluted EPS of $0.46 trailed the $0.69 estimate by 33.66%, dragged lower in part by $19.96 million in legal fees tied to the Appian litigation, nearly triple the year-ago figure. The headline declines, however, mask a meaningful structural shift: Pega Cloud revenue surged 36% to $205.03 million and now represents 48% of total revenue, up from 32% a year ago, as customers accelerate migration away from on-premise licenses. Annual Contract Value grew 12% to $1.62 billion, and operating cash flow held firm at $212.25 million, signaling underlying business health. With growing traction for its AI-native Blueprint architecture expected to shorten sales cycles, CFO Ken Stillwell expressed confidence that the company is well-positioned to expand ACV growth and cash flow margins as enterprises move beyond AI experimentation toward measurable returns.
Key Takeaways
- • Pega Cloud ACV grew 29% year over year, driving cloud revenue up 36%
- • Subscription services revenue increased 23% to $280.3 million
- • Cash flow from operations and free cash flow both exceeded $200 million
- • Total ACV grew 12% year over year to $1.622 billion
PEGA Forward Guidance & Outlook
COO and CFO Ken Stillwell stated that as enterprises move past the experimental phase of AI and demand real ROI, Pega's proven ability to generate measurable value positions the company well to drive ACV growth and expand cash flow margins.
PEGA YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
PEGA Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Alan Trefler, Q1 2026 Earnings Press Release
PEGA Earnings Trends
PEGA vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PEGA EPS Trend
Earnings per share: estimate vs actual
PEGA Revenue Trend
Quarterly revenue: estimate vs actual
PEGA Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $0.69 | $0.46 | -33.66% | $430.0M | -7.96% |
| Q4 25 BEAT FY | $0.73 | $0.76 | +3.51% | $504.3M | +2.17% |
| FY Full Year | — | $2.10 | — | $1.75B | — |
| Q3 25 BEAT | $0.20 | $0.30 | +50.75% | $381.4M | +8.69% |
| Q2 25 BEAT | $0.25 | $0.28 | +12.95% | $384.5M | +4.99% |