Pegasystems (NASDAQ:PEGA) Posts Earnings Results, Beats Estimates By $0.02 EPS

Pegasystems (NASDAQ:PEGA) issued its earnings results on Tuesday. The technology company reported $0.76 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.02, FiscalAI reports. The firm had revenue of $504.32 million for the quarter, compared to analysts’ expectations of $494.60 million. Pegasystems had a return on equity of 41.66% and a net margin of 22.54%.The business’s revenue was up 2.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.80 earnings per share. Pegasystems updated its FY 2026 guidance to 2.750-2.750 EPS.

Pegasystems Price Performance

NASDAQ:PEGA traded up $3.66 during trading hours on Thursday, reaching $41.59. 819,906 shares of the company traded hands, compared to its average volume of 1,996,836. The stock has a market cap of $7.06 billion, a P/E ratio of 19.48 and a beta of 1.07. The firm’s 50-day moving average is $54.29 and its 200-day moving average is $55.92. Pegasystems has a 1-year low of $29.84 and a 1-year high of $68.10.

Pegasystems Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, January 2nd were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date was Friday, January 2nd. Pegasystems’s dividend payout ratio (DPR) is 8.05%.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the stock. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $80.00 price target (up from $70.00) on shares of Pegasystems in a report on Wednesday, October 22nd. Rosenblatt Securities restated a “buy” rating and issued a $62.00 price objective on shares of Pegasystems in a research report on Thursday. KeyCorp set a $60.00 price target on Pegasystems in a research report on Thursday, February 5th. JPMorgan Chase & Co. boosted their target price on Pegasystems from $65.00 to $74.00 and gave the stock an “overweight” rating in a report on Friday, December 5th. Finally, Wedbush raised their price target on shares of Pegasystems from $70.00 to $75.00 and gave the stock an “outperform” rating in a report on Thursday, October 23rd. Nine equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, Pegasystems currently has a consensus rating of “Moderate Buy” and a consensus target price of $70.55.

Key Pegasystems News

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Q4 results beat expectations — Pegasystems reported better‑than‑expected EPS and revenue, with management highlighting AI-driven demand, rising cloud ACV and backlog expansion as growth drivers. Innovation Accelerates Pega’s Q4 2025 Growth
• Positive Sentiment: Raised FY‑2026 outlook and expanded buyback — management set FY‑2026 EPS guidance at $2.75 (above Street) and raised revenue targets while boosting the buyback, signaling confidence in cash flow and growth execution. Pegasystems Raises 2026 Outlook and Boosts Buyback Plan
• Positive Sentiment: Analyst support — Rosenblatt reaffirmed a Buy with a $62 target and other shops (William Blair, DA Davidson, Wedbush) remain constructive, which can underpin upside if execution continues. Rosenblatt Buy Rating / Price Target
• Neutral Sentiment: Strategic positioning — CEO commentary stresses a push to $2B revenue and a “predictable AI” approach (criticizing some multi‑agent hype); strategic direction may reassure long‑term investors but needs execution. Pega targets $2bn revenue milestone as it bets on ‘predictable AI’
• Neutral Sentiment: Valuation checks — recent pieces reassess PEGA’s valuation after share weakness; some analysts still see significant upside while median targets remain well above the current price. Assessing Pegasystems (PEGA) Valuation After Recent Share Price Weakness
• Negative Sentiment: Despite beats, market reacted negatively — shares fell after the release as investors parsed weaker operating profit trends, YoY net income commentary and other mixed metrics. Pegasystems shares fall 5% as net income declines YoY
• Negative Sentiment: Legal settlement — the company agreed to pay $7M to resolve investors’ trade‑secret claims, a modest but headline‑making expense. Pegasystems to Pay $7 Million for Investors’ Trade Secret Claims
• Negative Sentiment: Heavy insider selling flagged — recent disclosures show significant insider share sales, which can be perceived negatively by the market. QuiverQuant: Insider activity and stock reaction

Insider Buying and Selling

In other Pegasystems news, CFO Kenneth Stillwell sold 14,405 shares of the company’s stock in a transaction dated Friday, December 5th. The stock was sold at an average price of $57.87, for a total transaction of $833,617.35. Following the completion of the sale, the chief financial officer directly owned 131,621 shares in the company, valued at $7,616,907.27. This represents a 9.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Rifat Kerim Akgonul sold 4,000 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $60.19, for a total value of $240,760.00. Following the transaction, the insider owned 112,845 shares in the company, valued at approximately $6,792,140.55. This represents a 3.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 108,405 shares of company stock valued at $5,896,127. Insiders own 49.70% of the company’s stock.

Institutional Investors Weigh In On Pegasystems

Several institutional investors and hedge funds have recently made changes to their positions in PEGA. Sivia Capital Partners LLC acquired a new position in Pegasystems during the 2nd quarter valued at approximately $245,000. CIBC Bancorp USA Inc. bought a new stake in Pegasystems in the 3rd quarter valued at about $241,000. EP Wealth Advisors LLC acquired a new position in Pegasystems during the 2nd quarter valued at about $241,000. Vise Technologies Inc. acquired a new position in Pegasystems during the 4th quarter valued at about $263,000. Finally, Globeflex Capital L P bought a new position in Pegasystems in the 2nd quarter worth approximately $265,000. 46.89% of the stock is owned by institutional investors and hedge funds.

Pegasystems Company Profile

Pegasystems Inc is a software company specializing in customer engagement and digital process automation solutions. Headquartered in Cambridge, Massachusetts, Pegasystems develops enterprise applications designed to help organizations streamline operations, manage customer interactions and automate complex workflows. Its platform supports a wide range of use cases, from sales and marketing optimization to case management and robotic process automation.

The core of Pegasystems’ offering is the Pega Platform, a low-code development environment that enables businesses to build and deploy applications with minimal hand-coding.