Pegasystems Inc.
- Open
- 35.53
- Day high
- 36.98
- Day low
- 35.53
- Prev close
- 36.17
- Volume
- 2.1M
- Mkt cap
- $6.1B
- P/E (TTM)
- 19.4
- EPS (TTM)
- $1.90
- P/B
- 10.8
- P/S
- 3.5
- Yield
- 0.55%
- Per share
- $0.20
- ▼Insiders net selling -$180K over the last 3 months (0 open-market buys, 6 sales)
- 🏛Institutions accumulating (13F)
Pegasystems Inc. (PEGA) is a Technology company listed on NASDAQ. The stock is down 32% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 6 sales (SEC Form 4).
Pegasystems Inc. (PEGA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PEGA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 22, 2026 | $0.43 | $0.35 | -19.2% | $421M | -1.6% |
| Apr 22, 2026 | $0.65 | $0.46 | -29.1% | $430M | -5.6% |
| Oct 21, 2025 | $0.18 | $0.30 | +66.7% | $381M | -22.9% |
| Jul 22, 2025 | $0.24 | $0.28 | +14.7% | $385M | +6.3% |
| Apr 22, 2025 | $0.24 | $0.76 | +213.8% | $476M | +33.2% |
| Feb 12, 2025 | $1.47 | $1.61 | +9.5% | $491M | +4.1% |
| Oct 23, 2024 | $0.35 | $0.39 | +11.4% | $325M | -31.4% |
| Jul 24, 2024 | $0.23 | $0.52 | +126.1% | $351M | +3.2% |
| Feb 14, 2024 | $1.00 | $1.77 | +77.0% | $474M | +14.7% |
| Oct 25, 2023 | $0.01 | $0.44 | +8700.0% | $335M | +12.8% |
| Jul 26, 2023 | $0.05 | $0.01 | -80.0% | $298M | -4.4% |
| Feb 15, 2023 | $0.09 | $0.82 | +811.1% | $396M | +18.2% |
PEGA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 26, 2026 | Akgonul Rifat Kerimofficer: Chief Product Officer | Sell | 1,300 | $34.00 |
| Aug 26, 2026 | Akgonul Rifat Kerimofficer: Chief Product Officer | Sell | 1,700 | $33.98 |
| Aug 18, 2026 | JONES RICHARD Hdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | LAFOND CHRISTOPHERdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | Ghai Rohitdirector | Grant | 3,868 | — |
| Aug 18, 2026 | JONES RICHARD Hdirector | Grant | 3,868 | — |
| Aug 18, 2026 | LEDINGHAM DIANNEdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | Ghai Rohitdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | Rowlands Sharon Tdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | GYENES PETERdirector | Grant | 3,868 | — |
| Aug 18, 2026 | LEDINGHAM DIANNEdirector | Grant | 3,868 | — |
| Aug 18, 2026 | WEBER LARRYdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | Rowlands Sharon Tdirector | Grant | 3,868 | — |
| Aug 18, 2026 | GYENES PETERdirector | Grant | 7,947 | $32.32 |
| Aug 18, 2026 | WEBER LARRYdirector | Grant | 3,868 | — |
Source: PEGA SEC Form 4 filings, latest Aug 26, 2026. For informational purposes only — not investment advice.
See the full PEGA insider & 13F page →Pegasystems Inc. company profile
Overview
Pegasystems Inc. (NASDAQ:PEGA) is a Cambridge, Massachusetts-based enterprise software company founded in 1983 that develops low-code platform solutions for digital transformation and process automation. The company went public in 1996 and has evolved from a traditional software licensing model to a cloud-first subscription business, serving large enterprises across financial services, healthcare, government, and other industries. Pegasystems is known for its unified platform that combines customer engagement, digital process automation, and artificial intelligence capabilities to help organizations modernize legacy systems and optimize business workflows.
Business
Pegasystems operates in the enterprise software application market, specifically focusing on low-code platform solutions that enable digital transformation and business process automation for large organizations. The company's core offering is built around two main products that work together as an integrated platform. The Pega Platform serves as the foundational application development environment that allows businesses to build, deploy, and manage enterprise applications without extensive traditional coding. This low-code approach enables both technical developers and business users to create sophisticated workflow applications, customer service systems, and process automation tools more rapidly than conventional software development methods. Pega Infinity represents the company's comprehensive software suite that unifies customer engagement and digital process automation capabilities. This platform includes several specialized applications: Pega Customer Decision Hub for personalized customer interactions across marketing channels, Pega Sales Automation for managing sales processes, and Pega Customer Service for omnichannel customer support experiences. The platform also incorporates artificial intelligence and machine learning capabilities to optimize decision-making and automate routine tasks. The company has recently introduced Pega GenAI Blueprint, which leverages generative artificial intelligence to accelerate application design and development. This tool allows users to rapidly create workflow applications by describing business processes in natural language, significantly reducing the time from concept to deployment. Pegasystems primarily operates as a single business segment focused on enterprise software, with revenue streams coming from cloud subscriptions (approximately 60-70% of new business), traditional software licenses, and professional services. The company has been actively transitioning customers from on-premise deployments to cloud-based solutions, with Pega Cloud representing the majority of new customer commitments.
Revenue model
Pegasystems generates revenue through multiple complementary business models centered around its enterprise software platform. The primary revenue streams include subscription-based cloud services, traditional software licensing, and professional services, with the company actively transitioning toward a cloud-first model. The largest and fastest-growing revenue component comes from Pega Cloud subscriptions, which accounted for the majority of new Annual Contract Value (ACV) in recent periods. Customers pay recurring subscription fees based on usage metrics, typically measured by the volume of work or transactions processed through the platform. This consumption-based pricing model aligns costs with business value and creates predictable recurring revenue streams for Pegasystems. Traditional software licensing still contributes to revenue, though this segment has been declining as customers migrate to cloud deployments. These licenses typically involve upfront payments for perpetual software rights, along with ongoing maintenance fees for support and updates. Professional services represent another revenue stream, including implementation, training, and consulting services to help customers deploy and optimize their Pega applications. The company also offers Pega Academy training programs for employees, clients, and partners. The company's margins are influenced by several key factors. Positive margin drivers include the shift to cloud subscriptions, which carry higher gross margins (approaching 75-80%) compared to traditional licensing, the scalable nature of the software platform, and the company's focus on large enterprise customers who typically generate higher-value contracts. Margin pressures can arise from competitive pricing in the enterprise software market, the need for ongoing product development and AI innovation investments, sales and marketing expenses required to acquire new customers, and the costs associated with maintaining cloud infrastructure and security compliance requirements like FedRAMP certification for government clients.
Competitive moat
Pegasystems possesses a moderate to strong competitive moat built primarily around its unique architectural approach and high customer switching costs, though it faces increasing competition in the broader enterprise automation market. The company's primary competitive advantage lies in its "center-out" architecture, which differentiates it from competitors who typically build applications from the outside-in or inside-out. This approach allows Pega's platform to orchestrate workflows across multiple systems, channels, and departments from a central hub, making it particularly effective for complex enterprise environments where businesses need to coordinate processes across legacy systems, modern applications, and various customer touchpoints. High switching costs provide another layer of protection, as Pega applications often become deeply embedded in customers' core business processes. The platform's low-code nature means that customers build significant intellectual property and process knowledge directly into their Pega implementations, making migration to alternative solutions costly and risky. Additionally, the company's focus on large enterprise customers creates longer sales cycles but also more stable, long-term relationships. The company's recent investments in generative AI capabilities, particularly through Pega GenAI Blueprint, represent an attempt to strengthen its moat by making application development even more accessible and rapid. This could potentially expand the addressable market beyond traditional IT departments to business users. However, Pegasystems faces significant competitive pressures from multiple directions. Large technology vendors like Salesforce, Microsoft, and ServiceNow offer competing platforms with greater resources and broader ecosystems. Specialized automation vendors target specific use cases that Pega addresses, potentially fragmenting the market. The rise of AI-powered development tools from various providers could commoditize some of Pega's low-code advantages. Additionally, the company's relatively smaller scale compared to major competitors limits its ability to invest in research and development or acquire complementary technologies at the same pace as larger rivals.
Risks & safety
Pegasystems demonstrates a moderate margin of safety with solid financial fundamentals but some valuation concerns. **Financial Stability:** - Strong cash position with $231 million in cash and short-term investments as of Q1 2025 - Achieved debt-free status by repaying $468 million in convertible notes - Positive free cash flow generation of $202 million in Q1 2025, showing strong cash conversion - Current ratio of 1.39 indicates adequate liquidity to meet short-term obligations **Valuation Metrics:** - P/E ratio of 17.5x appears reasonable for a growing software company - EV/EBITDA of 11.2x is moderate for the enterprise software sector - Price-to-book ratio of 9.8x reflects premium valuation typical of software companies - Rule of 40 achievement (combining growth rate and profitability margins) indicates balanced growth and efficiency **Other Considerations:** - Recurring revenue model provides predictable cash flows - Strong customer retention in enterprise segment reduces revenue volatility - Active share repurchase program demonstrates capital allocation discipline - Transition to cloud-based model improving margin profile over time
Recent development
Over the past few years, Pegasystems has undergone significant strategic transformation centered around cloud migration, AI integration, and platform modernization. The company has successfully transitioned from a traditional software licensing model to a cloud-first subscription business, with Pega Cloud now representing the majority of new customer commitments and achieving 20%+ annual growth rates. The most significant recent development has been the launch of Pega GenAI Blueprint, which represents a fundamental shift in how customers engage with the platform. This generative AI-powered tool allows users to create sophisticated workflow applications by describing business processes in natural language, dramatically reducing development time and making the platform accessible to non-technical users. The company reports creating tens of thousands of blueprints since launch, with the tool becoming "ubiquitous" in customer interactions and accelerating sales cycles. Pegasystems has also introduced Pega Agent Experience (AgentX), which transforms traditional workflows into AI-powered agents that can operate autonomously while maintaining governance and auditability. This positions the company to capitalize on the growing interest in "agentic" AI workflows that can handle complex business processes with minimal human intervention. The company has strengthened its cloud infrastructure and partnerships, achieving FedRAMP High certification for government clients and deepening relationships with hyperscale cloud providers like AWS and Google Cloud. These partnerships have evolved from simple hosting arrangements to strategic collaborations around digital transformation and legacy system modernization. From a financial perspective, Pegasystems achieved Rule of 40 status by balancing growth with profitability, generated record free cash flow, and eliminated debt by repaying convertible notes. The company has also returned significant capital to shareholders through share repurchases while maintaining investment in product development and sales capacity expansion.
PEGA company profile · for informational purposes only — not investment advice.
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