Pegasystems Q4 revenue and EPS beat estimates

Pegasystems

10/02/2026 21:16

Overview

Enterprise transformation firm's Q4 revenue beat analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Outlook

Pegasystems expects 2026 ACV growth of 15%

Pegasystems forecasts 2026 cash flow from operations at $595 mln

Result Drivers

ACV GROWTH - Pegasystems reported a 17% year-over-year increase in Annual Contract Value, driven by strong execution and innovation

CLOUD ACV INCREASE - Pega Cloud ACV rose 33% year-over-year, reflecting increased demand for cloud solutions

CASH FLOW IMPROVEMENT - Cash flow from operations and free cash flow grew 45% year-over-year, indicating strong financial management

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$504.32 mln
$494.29 mln (10 Analysts)
Q4 Adjusted EPS
Beat
$0.76
$0.74 (10 Analysts)
Q4 Adjusted Net Income
Beat
$139.55 mln
$134.83 mln (10 Analysts)
Q4 Net Income
$234.57 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "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 $74.50, about 78.1% above its February 9 closing price of $41.84

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 29 three months ago

Press Release: ID:nBw9VQQtJa

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(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.)