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 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

$PEGA: the complaint quotes Pega's own training materials. Plaintiffs allege Voice AI streams both sides of a U.S. Bank call, transcribes it live and suggests agent replies, without caller consent. Nothing to claim. Open Class Actions.

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.

$PEGA: next up is Pegasystems' first response. Juarez, filed Oct 2, alleges its Voice AI was a hidden third party on U.S. Bank calls from CA, MA and PA. No class certified, nothing to claim. Open Class Actions.