Pegasystems reported third-quarter 2026 revenue of $393.4 million, up 3% from a year earlier, while GAAP net income fell 68% to $14.1 million after a $16.0 million litigation settlement. Non-GAAP diluted EPS rose 17% to $0.35, but the company said ACV growth slowed sharply in the first nine months and may continue to weigh on growth and cash flow for the rest of 2026.
Q3 2026 total revenue was $393.4 million, up 3% from $381.4 million; GAAP diluted EPS was $0.08, down from $0.24.
Non-GAAP diluted EPS was $0.35, up 17% from $0.30; non-GAAP net income was $59.8 million, up 8%.
Total ACV was $1.65 billion, up 6% as reported; Pega Cloud ACV grew 20% and reached 59% of total ACV.
Nine-month free cash flow was $289.8 million, down 14%, and the company reiterated a target of $700 million or more in 2028.
Pegasystems reported second-quarter 2026 revenue of $420.7 million, up 9% from a year earlier, while GAAP net income fell 56% to $13.3 million. The company said clients delayed purchasing decisions amid AI market changes, so ACV growth slowed significantly in the first half and may keep weighing on ACV growth and cash flow for the rest of 2026.
Q2 2026 total revenue was $420.7 million, up 9% from $384.5 million; first-half revenue was $850.7 million, down 1%.
Q2 GAAP diluted EPS was $0.08 versus $0.17; non-GAAP diluted EPS was $0.35 versus $0.28.
Annual contract value (ACV) reached $1.62 billion at June 30, 2026, up 7% (8% in constant currency); Pega Cloud ACV rose 22%.
First-half free cash flow was $288.3 million versus $286.5 million, but management warned cash flow may be adversely affected for the rest of the year.
Pegasystems reported first-quarter 2026 results with total revenue of $430.0 million, down 10% from $475.6 million a year earlier. GAAP net income fell 62% to $32.8 million, and GAAP diluted earnings per share were $0.18 versus $0.46, though annual contract value rose 12% to $1.62 billion.
Total revenue was $430.0 million, down from $475.6 million; subscription license revenue fell 49% to $94.9 million.
GAAP diluted EPS was $0.18 versus $0.46; non-GAAP diluted EPS was $0.46 versus $0.76.
Annual contract value rose 12% to $1.62 billion (11% in constant currency), with Pega Cloud ACV up 29%.
Cash provided by operating activities was $212.3 million and free cash flow was $206.5 million.
Pegasystems' Compensation Committee approved a 2026 incentive plan for its executive officers on February 9, 2026. Bonuses depend on achieving corporate goals weighted 75% financial and 25% strategic, and officers may take half of their target bonus in restricted stock units.
Plan covers January 1, 2026 through December 31, 2026; no funding if the Funding Percentage is below 70%.
Officers may elect to receive 50% of their target incentive in RSUs, granted in March 2026 at 85% of the closing price.
RSUs vest on or about the 2027 incentive payout date, subject to funding and continued employment.
The filing gives no dollar amounts for the incentive pool or individual targets.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.