Pegasystems (NASDAQ:PEGA) Updates FY 2026 Earnings Guidance

Pegasystems (NASDAQ:PEGA) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 2.750-2.750 for the period, compared to the consensus 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 Up 2.8%

Shares of NASDAQ:PEGA traded up $1.19 during trading on Tuesday, reaching $43.03. 3,987,477 shares of the company traded hands, compared to its average volume of 1,908,837. The firm has a fifty day simple moving average of $54.88 and a 200 day simple moving average of $56.15. Pegasystems has a 1-year low of $29.84 and a 1-year high of $68.10. The firm has a market cap of $7.30 billion, a P/E ratio of 28.88 and a beta of 1.07.

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

Pegasystems Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, January 2nd were issued a $0.03 dividend. This represents a $0.12 annualized dividend and a yield of 0.3%. The ex-dividend date was Friday, January 2nd. Pegasystems’s dividend payout ratio (DPR) is 8.05%.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. DA Davidson raised Pegasystems from a “neutral” rating to a “buy” rating and increased their target price for the stock from $60.00 to $85.00 in a report on Wednesday, October 22nd. Rosenblatt Securities lowered their price target on Pegasystems from $70.00 to $62.00 and set a “buy” rating on the stock in a research report on Friday. Royal Bank Of Canada reissued an “outperform” rating and set a $80.00 price objective (up from $70.00) on shares of Pegasystems in a report on Wednesday, October 22nd. Barclays boosted their target price on shares of Pegasystems from $58.00 to $67.00 and gave the company an “equal weight” rating in a research note on Thursday, October 23rd. Finally, Wedbush increased their target price on shares of Pegasystems from $70.00 to $75.00 and gave the stock an “outperform” rating in a research report on Thursday, October 23rd. Nine research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $70.55.

Insider Buying and Selling at Pegasystems

In other news, Chairman Alan Trefler sold 45,000 shares of the company’s stock in a transaction dated Wednesday, January 21st. The stock was sold at an average price of $49.02, for a total value of $2,205,900.00. Following the completion of the sale, the chairman directly owned 44,394,454 shares of the company’s stock, valued at $2,176,216,135.08. This represents a 0.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CFO Kenneth Stillwell sold 14,405 shares of the stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $57.87, for a total transaction of $833,617.35. Following the completion of the sale, the chief financial officer owned 131,621 shares in the company, valued at $7,616,907.27. This represents a 9.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 108,405 shares of company stock worth $5,896,127. Company insiders own 50.10% of the company’s stock.

Hedge Funds Weigh In On Pegasystems

A number of large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased its stake in shares of Pegasystems by 1.4% during the 3rd quarter. NewEdge Advisors LLC now owns 13,652 shares of the technology company’s stock worth $785,000 after purchasing an additional 189 shares during the last quarter. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main grew its holdings in 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 worth $100,000 after purchasing an additional 924 shares during the period. HighTower Advisors LLC increased its position in Pegasystems by 15.0% during the fourth quarter. HighTower Advisors LLC now owns 7,263 shares of the technology company’s stock worth $434,000 after buying an additional 948 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Pegasystems by 83.8% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,270 shares of the technology company’s stock valued at $123,000 after buying an additional 1,035 shares during the period. Finally, Focus Partners Wealth lifted its position in shares of Pegasystems by 10.5% in the third quarter. Focus Partners Wealth now owns 15,838 shares of the technology company’s stock valued at $911,000 after buying an additional 1,508 shares during the last quarter. Institutional investors own 46.89% of the company’s stock.

About Pegasystems

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.