Pega Cloud ACV Grows 20% in Q3 2026
Pegasystems reported Q3 2026 revenue of $393.4 million, up 3% YoY, with GAAP net income falling 68% to $14.1 million and GAAP diluted EPS of $0.08 versus $0.24 a year ago. Total ACV grew 6% (7% constant currency) to $1.65 billion, but Pega Cloud ACV jumped 20% to $976 million, now 59% of total ACV; management admitted go-to-market execution challenges slowed growth, though Q3 delivered the strongest ACV add of the year. Non-GAAP diluted EPS rose 17% to $0.35, and nine-month free cash flow was $289.8 million, down 14%, with the company reaffirming a target of $700 million or more of free cash flow in 2028.
Key figures
- Eps
- 0.08
- Revenue
- 393359000
- Guidance
- On track to deliver $700M or more of free cash flow in 2028
- Revenue Yoy
- 3%
- Backlog
- 2009364000
- Fcf yoy
- -14%
- Total acv
- 1653309000
- Backlog yoy
- 15%
- Non gaap eps
- 0.35
- Total acv yoy
- 6%
- Nine month fcf
- 289825000
- Pega cloud acv
- 975991000
- Non gaap eps yoy
- 17%
- Total acv cc yoy
- 7%
- Gaap net income q3
- 14092000
- Nine month revenue
- 1244048000
- Pega cloud acv yoy
- 20%
- Gaap net income yoy
- -68%
- Pega cloud pct of acv
- 59%
- Non gaap net income q3
- 59750000
- Gaap operating income q3
- 14861000
- Litigation settlement q3
- 16000000
AI analysis
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