Pegasystems (NASDAQ:PEGA) Updates FY 2026 Earnings Guidance

Pegasystems (NASDAQ:PEGA) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 2.750-2.750 for the period, compared to the consensus EPS estimate of 2.220. The company issued revenue guidance of $2.0 billion-$2.0 billion, compared to the consensus revenue estimate of $1.9 billion.

Pegasystems Stock Performance

Shares of NASDAQ PEGA traded up $1.19 during mid-day trading on Tuesday, reaching $43.03. The company had a trading volume of 3,987,477 shares, compared to its average volume of 1,908,837. The firm has a market cap of $7.30 billion, a price-to-earnings ratio of 28.88 and a beta of 1.07. The business’s 50-day simple moving average is $54.88 and its 200 day simple moving average is $56.15. Pegasystems has a one year low of $29.84 and a one year high of $68.10.

Pegasystems (NASDAQ:PEGA) last posted its quarterly earnings data on Tuesday, February 10th. The technology company reported $0.76 earnings per share for the quarter, topping the consensus estimate of $0.74 by $0.02. Pegasystems had a net margin of 16.05% and a return on equity of 43.49%. The business had revenue of $504.32 million during the quarter, compared to analysts’ expectations of $494.60 million. Pegasystems has set its FY 2026 guidance at 2.750-2.750 EPS. On average, sell-side analysts anticipate that Pegasystems will post 1.89 EPS for the current year.

Pegasystems Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, January 2nd were given 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 payout ratio is currently 8.05%.

Analyst Ratings Changes

PEGA has been the subject of several recent analyst reports. Wall Street Zen upgraded Pegasystems from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 31st. Royal Bank Of Canada reissued an “outperform” rating and set a $80.00 price target (up previously from $70.00) on shares of Pegasystems in a report on Wednesday, October 22nd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Pegasystems in a research note on Monday, December 29th. Rosenblatt Securities decreased their target price on Pegasystems from $70.00 to $62.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Wedbush boosted their target price on Pegasystems from $70.00 to $75.00 and gave the stock an “outperform” rating in a research note on Thursday, October 23rd. Nine equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Pegasystems presently has a consensus rating of “Moderate Buy” and an average price target of $70.55.

Insider Transactions at Pegasystems

In related news, insider Rifat Kerim Akgonul sold 4,000 shares of the stock in a transaction on Monday, December 8th. The stock was sold at an average price of $60.19, for a total value of $240,760.00. Following the completion of the sale, the insider directly owned 112,845 shares in the company, valued at $6,792,140.55. This represents a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kenneth Stillwell sold 14,405 shares of the firm’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $57.87, for a total value of $833,617.35. Following the transaction, the chief financial officer directly owned 131,621 shares of the company’s stock, valued at approximately $7,616,907.27. This represents a 9.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 108,405 shares of company stock worth $5,896,127. Insiders own 50.10% of the company’s stock.

Institutional Trading of Pegasystems

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PEGA. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main raised its holdings in shares of Pegasystems by 100.0% during the second quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main now owns 1,848 shares of the technology company’s stock valued at $100,000 after purchasing an additional 924 shares during the period. CIBC Private Wealth Group LLC raised its stake in Pegasystems by 339.3% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,126 shares of the technology company’s stock worth $122,000 after buying an additional 1,642 shares during the period. Northwestern Mutual Wealth Management Co. raised its stake in Pegasystems by 83.8% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,270 shares of the technology company’s stock worth $123,000 after buying an additional 1,035 shares during the period. Jones Financial Companies Lllp boosted its holdings in Pegasystems by 450.4% in the first quarter. Jones Financial Companies Lllp now owns 1,844 shares of the technology company’s stock worth $128,000 after acquiring an additional 1,509 shares in the last quarter. Finally, Baird Financial Group Inc. acquired a new stake in Pegasystems in the second quarter valued at approximately $209,000. Institutional investors and hedge funds own 46.89% of the company’s stock.

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.