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PEGAPegasystems Inc.
$34.70$5.7B
Overview & Tools
OverviewChart Terminal ↗Visualize
Valuation & Forecasts
Valuation ModelsEstimatesDCF Model
Price & Analyst Data
Analyst TargetsPrice History
Financial Statements
Income StatementBalance SheetCash FlowRatios & Margins
Performance
P/E HistoryRevenue HistoryEarnings HistoryDividend HistoryTotal Return
Discovery & Screens
Live BreakoutsStock ScreenerOwnership
PEGA logo

Pegasystems Inc.

PEGA
NASDAQ · Application Software
$34.70
At close - Sep 22, 4:00 PM EDT - USD
Market Cap$5.71B
P/E16.3x
52W High$68.10
Volume1.68M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q2

Legal Overhang Cleared, Cloud Margins Expand Modestly

Pegasystems' investment case centers on a structurally cleaner balance sheet following the overturning of the $2B Appian judgment, with debt-to-equity collapsing from 1.48 in 2024Q1 to 0.13 by 2026Q2. The company's asset-light model generates robust cash flow,...

GrowthMixed
ProfitabilityStable
ValuationAttractive
TechnicalsWeak
Explore valuation models
MARKET ACTION

PEGA price & volume

Price trend, volume and key moving averages

Launch Terminal
Loading chart...
Decision Checklist4 Core Signals

What matters now

The signals most likely to change the investment case.

01

Earnings momentum

9/12 Beats

EPS beat 9 of last 12 quarters

02

Valuation risk

-41% Peers

P/E is 41% below peer median

03

Market leadership

RS 38 · Lag

Laggard (Underperforming 62% of market)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Oct 21
01

Build the investment case

Start with the evidence for owning the stock and the risks that can break the thesis.

EXECUTIVE THESIS

The Investment Case

Full Analysis
Fundamental Trajectory

Revenue growth is highly volatile due to cloud contract timing, swinging from 44.1% YoY in 2025Q1 to -9.6% in 2026Q1, while gross margin improved to 74.3% in 2026Q2 from 70.2% in 2024Q3, yet operating margin remains thin at 4.0% outside Q4, with SBC of $45.8M in 2026Q2 nearly three times operating income.

Analyst Consensus+2.6% target
Buy(24 analysts)
13 Buy11 Hold0 Sell

The Bull Case

Upside Catalysts

Strong stock appreciation

The company's stock price has appreciated approximately by 79.3% since coverage began, indicating strong market performance.

High net-dollar retention

JFrog maintains high net-dollar retention, which is a positive indicator for Pegasystems Inc.'s financial health.

Cash generation

The company's ability to generate cash is emphasized as a key bullish driver.

The Bear Case

Key Downside Risks

Market performance

Price History →

Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
PEGA-37.78%
S&P 500 (^GSPC)+13.20%
1-Year Return
PEGA-41.80%
S&P 500 (^GSPC)+15.98%
3-Year Return
PEGA+64.91%
S&P 500 (^GSPC)+79.05%
5-Year Return
PEGA-47.08%
S&P 500 (^GSPC)+72.51%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y Low
16.3x
Forward P/EExpansion
14.3x
EV/EBITDA0th %ile
19.3x
FCF YieldCash Flow
8.6%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
16.3x
61.1x
0th· Low
EV/EBITDA
19.3x
38.9x
0th· Low
Price/FCF
11.6x
24.7x
0th· Low
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$13.48-61.2%
Base (Fair)$23.02-34.3%
Bull$28.61-17.6%
$13.48 Bear$23.02 Base$28.61 Bull
Current Market Price: $34.71
Trades at a 50.8% premium to Base DCF ($23.02)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue
$1.75B+16.6% YoY
Net income
$393M+296.7% YoY
Free cash flow
$491M+45.1% YoY
Operating margin
15.1%+6.8 pts YoY
ROIC (TTM)27.2%
Avg ROIC 5Y-
ROE (TTM)57.3%
Piotroski Score8 / 9
Financial Statements →
03

Monitor what changed

Recent results and news deserve attention only when they alter the forward view.

OPERATING RESULTS

Recent Earnings

Earnings History
EPS Beat Rate9/12 (75%)
Revenue Beat Rate8/12 (67%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q3 2026Latest
Jul 21, 2026
$0.35-19.2%
vs $0.43
$421M-1.6%
vs $427M
Q2 2026
Apr 21, 2026
$0.46-29.1%
vs $0.65
$430M-5.6%
vs $456M
Q1 2026
Feb 10, 2026
$0.76+5.6%
vs $0.72
$504M+2.5%
vs $492M
Q4 2025
Oct 21, 2025
$0.30+66.7%
vs $0.18
$381M+8.5%
vs $352M
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

5 Stories
Business Wire·Sep 14, 2026
Pega Announces Quarterly Cash Dividend for Fourth Quarter of 2026

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the enterprise AI software company for mission-critical work, today announced a quarterly cash dividend of $0.03 per share, maintaining the company's current dividend program. The Q4 2026 dividend will be paid on October 15, 2026, to shareholders of record as of October 1, 2026. About Pega Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI wi.

Defense World·Sep 13, 2026
Hsbc Holdings PLC Buys 36,155 Shares of Pegasystems Inc. $PEGA

Hsbc Holdings PLC boosted its stake in Pegasystems Inc. (NASDAQ: PEGA) by 280.8% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 49,030 shares of the technology company's stock after purchasing an additional 36,155 shares during the quarter. Hsbc

Defense World·Sep 9, 2026
Keel Infrastructure (NASDAQ:KEEL) & Pegasystems (NASDAQ:PEGA) Head-To-Head Review

Keel Infrastructure (NASDAQ: KEEL - Get Free Report) and Pegasystems (NASDAQ: PEGA - Get Free Report) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership. Analyst Ratings This is a breakdown of recent

Seeking Alpha·Sep 8, 2026
Pegasystems Inc. (PEGA) Presents at Citi's 2026 Global TMT Conference Transcript

Pegasystems Inc. (PEGA) Presents at Citi's 2026 Global TMT Conference Transcript

Filtered for Pegasystems Inc.More Headlines
04

Compare before deciding

Benchmark PEGA against direct peers instead of judging its metrics in isolation.

Peers Comparison

Key metrics vs top competitors for Pegasystems Inc. (PEGA)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
PEGA logoPEGAPegasystems Inc.Current
$34.71$5.71B16.2916.61%22.54%57.32%0.24%
APPN logoAPPNAppian Corporation
$36.90$2.73B2236.3617.81%-1.34%——
AGYS logoAGYSAgilysys, Inc.
$100.37$2.83B73.8015.85%12.99%13.46%—
POWI logoPOWIPower Integrations, Inc.
$51.46$2.87B131.955.85%5.58%3.72%—
NICE logoNICENICE Ltd.
$118.29$6.93B12.237.68%13.85%11.24%—
CRM logoCRMSalesforce, Inc.
$233.28$191.06B29.919.58%21.99%20.15%—

Compare PEGA vs Peers

Pegasystems Inc. (PEGA) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs APPN

Most directly comparable listed peer for PEGA.

Scale Benchmark

vs GOOGL

Larger-name benchmark to compare PEGA against a more recognizable public peer.

Peer Set

Compare Top 5

vs APPN, AGYS, POWI, NICE

05

Keep researching

Verify the primary filings, follow material updates, and answer the remaining questions.

PEGA SEC Filings & Documents

Pegasystems Inc. (PEGA) SEC filings — annual & quarterly reports (10-K, 10-Q)

8-K Announcements

6
Material company update

Jul 21, 2026·SEC

Material company update

Jun 18, 2026·SEC

Material company update

Jun 8, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 10, 2026·SEC

FY 2025

Feb 12, 2025·SEC

10-Q Quarterly Reports

4
FY 2026

Jul 21, 2026·SEC

FY 2026

Apr 21, 2026·SEC

FY 2025

Oct 21, 2025·SEC

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PEGA Frequently Asked Questions

Pegasystems Inc. (PEGA) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Pegasystems Inc.'s revenue?

Pegasystems Inc. (PEGA) reported $1.74B in revenue for fiscal year 2025. This represents a 5083% increase from $33.5M in 1996.

How fast is Pegasystems Inc. growing?

Pegasystems Inc. (PEGA) grew revenue by 16.6% over the past year. This is strong growth.

Is PEGA profitable?

Yes, Pegasystems Inc. (PEGA) is profitable, generating $324.0M in net income for fiscal year 2025 (22.5% net margin).

Dividend & Returns
Does PEGA pay dividends?

Yes, Pegasystems Inc. (PEGA) pays a dividend with a yield of 0.24%. This makes it attractive for income-focused investors.

What is PEGA's return on equity?

Pegasystems Inc. (PEGA) has a return on equity (ROE) of 57.3%. This is excellent, indicating efficient use of shareholder capital.

What is Pegasystems Inc.'s free cash flow?

Pegasystems Inc. (PEGA) generated $502.5M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in PEGA back in 1996?

Total return calculator · dividends reinvested · 30+ years of data

See returns →