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PEGA
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PEGAPegasystems Inc.
$32.40$5.3B
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
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PEGA logo

Pegasystems Inc.

PEGA
NASDAQ · DevOps & Observability
$32.40
At close - USD
Market Cap$5.33B
P/E15.2x
52W High$63.26
Volume2.6M
OverviewTerminalAnalysisFinancialsValuationEarningsBreakoutsOwnership
VCP Research Verdict2026Q3

Cloud Transition Obscures Margins and Volatile Cash

Pegasystems presents a conflicted profile: a structurally transformed balance sheet with total debt reduced from $586.1M in 2024Q2 to just $69.0M (D/E of 0.13) and 73.6% gross margins, yet the cloud transition appears to be generating limited operating leverage, with revenue growth decelerating to 3.1% in 2026Q3 and…

GrowthDecelerating
ProfitabilityModerate
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

-42% Peers

P/E is 42% below peer median

03

Market leadership

RS 43 · Lag

Laggard (Underperforming 57% of market)

04

Weak Trend

Below 200DMA

Price < 200DMA

Next CatalystEstimated earnings · Jan 20
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 has decelerated to 3.1% in 2026Q3 with operating margin at 3.8% and EPS declining 66.7% year-over-year, suggesting the shift to ratable cloud revenue is not yet translating into the operating leverage that a 73.6% gross margin business would typically support.

Analyst Consensus+14.2% target
Buy(24 analysts)
12 Buy12 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 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).

YTD Return
PEGA-41.84%
S&P 500 (^GSPC)+7.63%
1-Year Return
PEGA-44.70%
S&P 500 (^GSPC)+9.69%
3-Year Return
PEGA+45.83%
S&P 500 (^GSPC)+63.15%
5-Year Return
PEGA-45.42%
S&P 500 (^GSPC)+52.40%
02

Test the fundamentals

Check whether operating performance supports the current valuation.

VALUATION & INTRINSIC VALUE

Valuation Scenarios

Valuation Analysis
Trailing P/E5Y Low
18.5x
Forward P/EExpansion
15.6x
EV/EBITDA0th %ile
25.9x
FCF YieldCash Flow
8.5%

Valuation vs 5-Year History

Multiple Range
Metric
Current
5Y Median
Historical Range
Percentile
P/E
18.5x
61.1x
0th· Low
EV/EBITDA
25.9x
38.9x
0th· Low
Price/FCF
11.8x
24.7x
0th· Low
Current Multiple
5Y Median (50th %ile)

Intrinsic Value Scenarios

DCF Projection
Bear$13.33-58.9%
Base (Fair)$23.90-26.2%
Bull$28.78-11.2%
$13.33 Bear$23.90 Base$28.78 Bull
Current Market Price: $32.40
Trades at a 35.6% premium to Base DCF ($23.90)
Open DCF & Valuation Models →Chart Terminal ↗

Growth & profitability

Annual revenue & EPS trend
Revenue FY25
$1.75B+16.6% YoY
Net income FY25
$393M+296.7% YoY
Free cash flow FY25
$491M+45.1% YoY
Operating margin FY25
15.1%+6.8 pts YoY
ROIC (FY25)27.2%
Avg ROIC 5Y-
ROE (FY25)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 Rate7/12 (58%)
QuarterEPS (Act vs Est)Revenue (Act vs Est)
Q4 2026Latest
Oct 20, 2026
$0.35-23.1%
vs $0.45
$393M-6.6%
vs $421M
Q3 2026
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
Historical baseline: 12 quarters analyzedGAAP / Adjusted
MARKET COVERAGE

Latest News

4 Stories
Business Wire·2d ago
U.S. Army Awards Pega 10-Year Enterprise Contract to Accelerate Business Modernization

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the enterprise AI software company for mission-critical work, today announced that the U.S. Army has awarded Pega a 10-year Enterprise Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a $419 million ceiling to support the modernization of mission and business operations. The agreement gives authorized Army and Department of War organizations streamlined access to Pega products and services to update critical processes.

Defense World·4d ago
Head to Head Comparison: Open Text (NASDAQ:OTEX) & Pegasystems (NASDAQ:PEGA)

Pegasystems (NASDAQ: PEGA - Get Free Report) and Open Text (NASDAQ: OTEX - Get Free Report) are both mid-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability. Volatility and Risk Pegasystems has a beta of

Zacks Investment Research·Oct 30, 2026
ADBE vs. PEGA: Which Enterprise Software Stock Has an Edge?

Adobe has an edge over Pegasystems with stronger revenue growth, expanding AI monetization and a lower valuation, while PEGA faces slower ACV growth and sales challenges.

Zacks Investment Research·Oct 28, 2026
New Strong Sell Stocks for October 28th

BURL, LKQ and PEGA have been added to the Zacks Rank #5 (Strong Sell) List on October 28th, 2026.

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
$32.40$5.33B15.2116.61%22.54%57.32%0.26%
APPN logoAPPNAppian Corporation
$51.60$3.82B3127.2717.81%-1.34%——
AGYS logoAGYSAgilysys, Inc.
$121.09$3.42B89.0415.85%12.88%13.28%—
POWI logoPOWIPower Integrations, Inc.
$40.26$2.24B103.235.85%5.58%3.72%2.08%
NICE logoNICENICE Ltd.
$96.15$5.63B9.947.68%13.85%11.24%—
CRM logoCRMSalesforce, Inc.
$213.65$174.98B27.399.58%21.99%20.15%0.78%

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 MSFT

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

Oct 20, 2026·SEC

Material company update

Jul 21, 2026·SEC

Material company update

Jun 18, 2026·SEC

10-K Annual Reports

2
FY 2026

Feb 10, 2026·SEC

FY 2025

Feb 12, 2025·SEC

10-Q Quarterly Reports

5
FY 2026

Oct 20, 2026·SEC

FY 2026

Jul 21, 2026·SEC

FY 2026

Apr 21, 2026·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 $1.75B in revenue in fiscal year 2025, which is also its trailing twelve months. That is 5111% more than the $33.5M of fiscal year 1996.

How fast is Pegasystems Inc. growing?

Pegasystems Inc. (PEGA) grew revenue by 16.6% in fiscal year 2025, compared with the prior fiscal year.

Is PEGA profitable?

Yes. Pegasystems Inc. (PEGA) earned $294.8M in net income over the trailing twelve months (a 16.9% net margin).

Dividend & Returns
Does PEGA pay dividends?

Yes. Pegasystems Inc. (PEGA) pays a dividend that yields 0.26% at the current price, a small yield.

What is PEGA's return on equity?

Pegasystems Inc. (PEGA) had a return on equity (ROE) of 57.3% in fiscal year 2025. That is well above the market's typical 10-15%.

What is Pegasystems Inc.'s free cash flow?

Pegasystems Inc. (PEGA) generated $452.2M in free cash flow over the trailing twelve months.

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

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

See returns →