PEGASYSTEMS INC (PEGA) Form 8-K — Oct 20, 2026
Pegasystems reported Q3 2026 revenue of $393.4M, up 3% year over year, but GAAP net income fell 68% to $14.1M ($0.08 diluted EPS) while non-GAAP EPS rose 17% to $0.35. Total ACV grew just 6% to $1.653B, though Pega Cloud ACV jumped 20% and now represents 59% of total ACV. Management acknowledged that go-to-market execution challenges and clients scrutinizing large tech purchases slowed ACV growth through the first nine months of 2026, but said Q3 delivered the strongest ACV add of the year. The company took a $16M litigation settlement charge plus restructuring costs in the quarter.
Key figures
- Eps
- $0.08 GAAP diluted, $0.35 non-GAAP diluted (Q3 2026)
- Revenue
- 393359000
- Guidance
- On track to deliver $700M or more of free cash flow in 2028
- Net Income
- 14092000
- Total Assets
- 1330293000
- Cash Position
- $309.7M total cash, cash equivalents and marketable securities
- Backlog
- $2,009M, +15% YoY
- Total acv
- $1,653M, +6% YoY (+7% constant currency)
- Pega cloud acv
- $976M, +20% YoY
- Ninemoon revenue
- $1,244.0M, flat YoY
- Restructuring q3
- $2.0M
- Gaap net income yoy
- -68%
- Q3 non gaap eps yoy
- +17%
- Q3 litigation settlement
- $16.0M
- Free cash flow nine months
- $289.8M, -14% YoY
- Pega cloud acv pct of total
- 59%
AI analysis
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