Pegasystems (NASDAQ: PEGA) Reports Q3 2026 Earnings Miss
Key points
- Earnings Miss: Pegasystems reported third-quarter 2026 earnings per share of $0.35, falling short of the $0.45 estimate.
- Revenue Miss: The company's revenue reached $393.36 million, missing the analyst estimate of $421.10 million.
- Cloud Growth: Despite the misses, Pega Cloud annual contract value (ACV) demonstrated strong growth, increasing by 20% in the quarter.
Pegasystems (NASDAQ: PEGA) reported third-quarter 2026 financial results after the market closed on October 20, 2026. The company sells enterprise software that helps large businesses manage customer service and other workflows. Its products compete with other business software platforms, including Salesforce and ServiceNow.
Earnings were $0.35 per share, below the $0.45 estimate. Earnings per share (EPS) measure profit divided by the number of shares. The result was higher than the $0.30 per share reported a year earlier, but it missed the estimate by 22.22%, as highlighted by Zacks.
Revenue was $393.36 million, or about $393.40 million, up 3.2% from $381.35 million a year earlier. It fell below the $421.10 million estimate cited for the report. Zacks used a higher consensus estimate of $429.02 million and calculated an 8.31% revenue miss. Pegasystems has beaten both earnings and revenue estimates in just one of the past four quarters, as highlighted by Zacks.
Pega Cloud annual contract value (ACV) grew 20% in the quarter, as highlighted by Business Wire. This key metric tracks the yearly value of cloud contracts and offers a view of customer commitments beyond current revenue. Pegasystems trades at a price-to-earnings ratio of 20.82, meaning its share price is 20.82 times its earnings over the past year.
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