Pegasystems Inc. (PEGA) Q3 FY2026 earnings

Reported results

• Total revenue Q3 2026: $393.4 million, up 3% vs. Q3 2025 ($381.4 million); nine months 2026: $1,244.0 million, flat vs. nine months 2025 ($1,241.5 million)
• Net income GAAP Q3 2026: $14.1 million (down 68% vs. Q3 2025: $43.4 million); nine months 2026: $60.2 million (down 62% vs. nine months 2025: $158.9 million)
• Net income non-GAAP Q3 2026: $59.8 million (up 8% vs. Q3 2025: $55.2 million); nine months 2026: $202.4 million (down 18% vs. nine months 2025: $245.9 million)
• Diluted earnings per share GAAP Q3 2026: $0.08 (down 67% vs. Q3 2025: $0.24); nine months 2026: $0.35 (down 59% vs. nine months 2025: $0.86)
• Diluted earnings per share non-GAAP Q3 2026: $0.35 (up 17% vs. Q3 2025: $0.30); nine months 2026: $1.17 (down 13% vs. nine months 2025: $1.34)
• Pega Cloud ACV September 30, 2026: $976.0 million (up 20% vs. September 30, 2025: $815.4 million); total ACV $1,653.3 million (up 6% as reported, 7% constant currency vs. $1,556.9 million)

Guidance

• Company targets $700M or more of free cash flow in 2028

Notes

The company noted that ACV growth rate significantly slowed during the nine months ended September 30, 2026, compared to the same period last year due to go-to-market execution challenges and clients subjecting large technology investments to greater scrutiny as AI disrupts the industry. The company states these factors may continue to adversely affect ACV growth rate and cash flow generation for the rest of 2026. Free cash flow nine months 2026 was $289.8 million (down 14% vs. nine months 2025: $338.3 million).

Price and volatility reaction

The stock moved -2.9% on the print. No front-expiry chain was on file, so there is no straddle expected move.

Source

The figures above come from the earnings release the company filed with the SEC on 2026-10-20 (8-K, Item 2.02). Read the original filing on sec.gov.