PEGA Pegasystems Inc.

Pegasystems reported weaker-than-expected Q3 2026 results, with adjusted EPS of $0.35 versus the $0.49 consensus and revenue of $393.4 million versus estimates of $421.8 million. Revenue increased 3% year over year to $393.4 million, while total annual contract value (ACV) rose 6% to $1.65 billion, or 7% in constant currency. Management cited commercial execution challenges and increased customer scrutiny of major technology investments amid AI-driven industry disruption, which significantly slowed ACV growth during the first nine months of 2026 and could continue to weigh on growth through year-end. However, Q3 ACV additions were the strongest of the year, reinforcing management’s confidence in demand. Pega Cloud revenue grew 19% to $218.9 million, while subscription services revenue rose 10% to $291.6 million. Subscription license revenue fell 9% to $55.6 million, and consulting revenue declined 18% to $46.2 million. GAAP net income dropped to $14.1 million. $PEGA

$PEGA: 3 state wiretap laws, 1 AI tool. Juarez alleges Pega Voice AI could use U.S. Bank call content to train its models, with callers never told upfront. $1,000 minimum sought under MA and PA law. Nothing to claim. Open Class Actions.

$PEGA: Juarez proposes three classes only: CA, MA and PA residents who called U.S. Bank from their home state. Callers from other states are out, plaintiffs allege. Nothing to claim. Open Class Actions.

$PEGA: U.S. Bank is not a defendant in Juarez. Only Pegasystems is sued, over allegations its Voice AI got live U.S. Bank calls without caller consent. No class certified, nothing to claim. Open Class Actions.

$PEGA $PEGASYSTEMS Inc alpha got her sooner than me but worth noting anyway Pegasystems wins $419M U.S. Army deal for software and support Rev is based on orders placed during 10 year span

$PEGA UBS downgrade to sell. Citizens maintain hold but cites execution challenges as an issue. ( Marketbeat)

$PEGA Q3 revenue came in at 393.4 million dollars, up 3% YoY, and non-GAAP EPS was 35 cents, up from 30 cents a year ago but well under the 45 cents Zacks had. The split inside ACV is the whole print. Pega Cloud ACV grew 20% to 976 million dollars and is now 59% of total ACV, while subscription license ACV fell 6% and maintenance fell 12%. Total ACV only grew 6%, to 1.65 billion dollars. Management blamed go-to-market execution, not demand, and said the Q3 ACV add was the strongest of the year. Backlog is up 15% to 2.01 billion dollars.

$PEGA Revenue missed by about 7%, its third miss in a row. Revenue grew only 3% year on year. ACV slowed again, from 17% in Q4'25 to 12%, 7% and now 6%. Cloud ACV is also slowing. The CFO blamed go-to-market execution, while saying Q3 was the year's strongest ACV add. Cash flow was very weak in the quarter. First-half free cash flow was over $285M, so Q3 alone was only about $5M or less. No word on FY26 guidance. The release doesn't mention the 15% ACV / $595M CFO / $575M FCF targets. To hit $575M FCF, Q4 would need roughly $285M, so expect that guidance to be cut or dropped on tomorrow's call. The only forward target given is $700M+ FCF in 2028.

$PEGA (Pegasystems, enterprise AI workflow software): its Q3 10-Q, filed with results, says a Virginia court on Oct 16 let Appian seek royalty damages of $284.6M plus $1.36B at the Jan 11, 2027 trade-secret retrial. Q3 revenue rose 3% to $393.4M and ACV grew 6% to $1.65B, but GAAP net income fell 68% to $14.1M from $43.4M, including a $16.0M litigation settlement charge. Pega denies misappropriation, says it can't estimate damages, and an appeals court voided the original $2.06B judgment. Pretrial motions run Nov 6 to Dec 18.

$PEGA Q3 '26 Earnings Results & Recap • Reported GAAP EPS of $0.35 up 16.67% YoY • Reported revenue of $393.36M up 3.15% YoY

the quiet loser this morning. big decliners are thin today, my large and mid cap screen found only a handful past 3% down. $PEGA is ~3% lower premarket, 34.54 to ~33.5, and I could not find a news item behind it, so the cause is unconfirmed. what is on the calendar: earnings tomorrow after the close, estimate 0.43 EPS per the connected calendar. a drift into a print is not a thesis. premarket quote.