Pegasystems Q1 revenue misses estimates as subscription services fell

Pegasystems

21/04/2026 21:24

Overview

US enterprise software provider's Q1 revenue fell 10% yr/yr, missing analyst expectations

Adjusted EPS for Q1 declined 39% yr/yr and missed analyst expectations

Company's Pega Cloud ACV grew 29% yr/yr, driven by Blueprint AI adoption

Outlook

Company says it is well positioned to drive ACV growth and expand cash flow margins

Result Drivers

PEGA CLOUD MOMENTUM - Pega Cloud ACV rose 29% yr/yr, which the company attributed to increased adoption of Blueprint AI by enterprises

SUBSCRIPTION LICENSE DECLINE - Subscription license revenue fell 49% yr/yr, offsetting gains in other segments

Company press release: ID:nBw6MPsqSa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$429.97 mln
$458.84 mln (11 Analysts)
Q1 Adjusted EPS
Miss
$0.46
$0.66 (11 Analysts)
Q1 EPS
$0.18
Q1 Adjusted Net Income
Miss
$83.07 mln
$122.22 mln (11 Analysts)
Q1 Net Income
$32.76 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Pegasystems Inc is $58.38, about 33.3% above its April 20 closing price of $43.80

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 27 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)