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Pegasystems (PEGA)
NASDAQ:PEGA
Earnings Data
Report Date
Apr 29, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.68Last Year’s EPS
0.77Same Quarter Last Year
Strong Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized strong top‑line and cash generation momentum driven by Pega Cloud and Blueprint adoption, with significant improvements in ACV, net new ACV, free cash flow (+45% to $491M), backlog (now >$2B), and a clear 2026 growth and cash‑return plan (15% ACV growth, ~$2.0B revenue, $575M FCF). Management acknowledged operational shifts (reduced professional services headcount, greater partner reliance), seasonality/back‑end loading risk in 2026, and some investor concern about quarter‑to‑quarter ACV acceleration. On balance the company presented measurable progress, strong financials, and constructive guidance, while flagging execution and timing risks tied to delivery model changes and seasonal contract patterns.Company Guidance
Strong ACV Growth
Total ACV grew 17% year‑over‑year as reported and 14% in constant currency, beating guidance; net new ACV increased 37% year‑over‑year in constant currency.
Pega Cloud ACV Outperformance
Pega Cloud ACV grew 33% year‑over‑year as reported and 28% in constant currency, a marked acceleration from the prior year's ~18% (reported) / 21% (CC) growth; Pega Cloud ACV growth accelerated sequentially in all four quarters of 2025.
Free Cash Flow Expansion and Capital Returns
Free cash flow increased 45% year‑over‑year to $491 million, exceeding guidance by $51 million; ended 2025 with $426 million in cash and investments, repaid $468 million of debt, repurchased $498 million of shares, and the board authorized an additional $1 billion in buyback capacity.
Backlog Milestone
Contractually committed backlog grew 28% as reported and 23% in constant currency to exceed $2 billion for the first time in company history; Pega Cloud backlog grew 36% as reported and now represents 74% of total backlog.
2026 Financial Guidance
Management provided 2026 guidance including Total ACV growth of 15% (constant currency), total revenue of approximately $2.0 billion (≈15% increase), and free cash flow of $575 million (a 17% increase vs. 2025); Pega Cloud ACV expected to grow ~30% in 2026.
Operational & Product Momentum (Blueprint / AI)
Blueprint transitioned from experiment to core experiential sales engine and AI design agent, driving pipeline acceleration, faster progression and win rates; example: Proximus used Blueprint to redesign an application in one day and move to production on Pega Cloud in four months. Management also noted faster new‑hire ramp (field‑ready in ~1 month vs. 5–6 months previously).
Improved Customer Economics
Net retention rate expanded by approximately 150 basis points year‑over‑year (management cited ~150 bps improvement), contributing to confidence in sustained ACV and revenue growth.
Strategic Partnerships and Ecosystem
Highlighted partner momentum (e.g., Cognizant, AWS, Accenture, Wipro) and partner IP integrations into Blueprint; alignment with AWS for legacy transformation and deployment to Pega Cloud.
Legal Outcome
Management reported that the prior $2 billion trade‑secret verdict was vacated/removed following favorable appellate and Supreme Court of Virginia outcomes (company statement filed as an 8‑K), eliminating that exposure.
Rule of 40 Discipline and Balance Sheet Strength
Company emphasized Rule of 40 discipline, subscription transition benefits improving predictability (ACV and revenue alignment), and continued investment capacity for product, go‑to‑market, and partner initiatives.
PEGA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PEGA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 10, 2026 | $43.03 | $37.93 | -11.85% |
Oct 21, 2025 | $57.02 | $65.56 | +14.97% |
Jul 22, 2025 | $50.87 | $57.95 | +13.92% |
Apr 22, 2025 | $34.33 | $44.20 | +28.78% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Pegasystems (PEGA) report earnings?
Pegasystems (PEGA) is schdueled to report earning on Apr 29, 2026, After Close (Confirmed).
What is Pegasystems (PEGA) earnings time?
Pegasystems (PEGA) earnings time is at Apr 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PEGA EPS forecast?
PEGA EPS forecast for the fiscal quarter 2026 (Q1) is 0.68.
