PEGASYSTEMS INC (PEGA) Form 10-Q — Oct 20, 2026
Pegasystems reported Q3 2026 revenue of $393.4 million, up 3% year over year, but net income fell to $14.1 million from $43.4 million a year ago, weighed down by a $16 million litigation settlement, restructuring charges, and higher legal costs. The company's growth engine is slowing: ACV grew just 6% (7% constant currency), which management attributed to clients scrutinizing large technology investments as AI disrupts the industry. Pega Cloud remains the bright spot, with ACV up 20% and Q3 Pega Cloud revenue up 19% to $218.9 million.
Key figures
- Eps
- 0.08 diluted (Q3 2026)
- Revenue
- 1244048000
- Net Income
- 60190000
- Revenue Yoy
- 0.2% (nine months); Q3 total revenue $393.4M, +3% YoY
- Cash Position
- 309711000
- Shares Outstanding
- 163663545
- Acv
- 1653309000
- Backlog
- 2009000000
- Acv growth
- 6% (7% constant currency), significantly slowed
- Q3 revenue
- 393359000
- Q3 net income
- 14092000
- Backlog growth
- 15%
- Free cash flow
- 289825000
- Buyback 9m 2026
- 10.9 million shares for $432.2M at avg $39.73
- Quarterly dividend
- $0.03 per share
- Operating cash flow
- 304299000
- Appian royalty claim
- $284.6M marketing/sales + $1.36B Pega Platform revisions
- Pega cloud acv growth
- 20%
- Shares repurchased 9m
- 10878000
- Credit facility amended
- increased to $200M, extended to October 16, 2031
- Q3 net income prior year
- 43364000
- Litigation settlement expense
- 16000000
- Remaining buyback authorization
- 810055000
AI analysis
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