PEGA

Company Overview — What Does PEGASYSTEMS INC Do?

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software applications in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. It provides Pega Platform, an application development product for clients; and Pega Infinity, a software platform that unifies customer engagement and digital process automation. The company also offers customer engagement applications, including Pega Customer Decision Hub that enable enterprises to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Sales Automation to automate and manage the sales process; and Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity. In addition, it provides intelligent automation software; Pega Cloud that allows clients to develop, test, and deploy applications and the Pega Platform using an Internet-based infrastructure; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and guidance, implementation, and technical support services. The company primarily markets its software and services to financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts. PEGASYSTEMS INC (PEGA) is classified as a mid-cap stock in the Industrials sector, specifically within the Business Services industry. The company is led by CEO Alan Trefler and employs approximately 6,140 people, headquartered in Cambridge, Massachusetts. With a market capitalization of $7.1B, PEGA is one of the notable companies in the Industrials sector.

PEGASYSTEMS INC (PEGA) Stock Rating — Reduce (April 2026)

As of April 2026, PEGASYSTEMS INC receives a Reduce rating with a composite score of 38.4/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.PEGA ranks #2,777 out of 4,446 stocks in our coverage universe. Within the Industrials sector, PEGASYSTEMS INC ranks #459 of 752 stocks, placing it in the lower half of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

PEGA Stock Price and 52-Week Range

PEGASYSTEMS INC (PEGA) currently trades at $39.37. The stock lost $0.50 (1.3%) in the most recent trading session. The 52-week high for PEGA is $105.50, which means the stock is currently trading -62.7% from its annual peak. The 52-week low is $35.89, putting the stock 9.7% above its annual trough. Recent trading volume was 2.3M shares, reflecting moderate market activity.

Is PEGA Overvalued or Undervalued? — Valuation Analysis

PEGASYSTEMS INC (PEGA) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 49.55x, compared to the Industrials sector average of 28.33x — a premium of 75%. The price-to-book ratio stands at 9.09x, versus the sector average of 2.23x. The price-to-sales ratio is 4.57x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, PEGA trades at 48.68x EV/EBITDA, versus 5.70x for the sector.

Overall, PEGA's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.

PEGASYSTEMS INC Profitability — ROE, Margins, and Quality Score

PEGASYSTEMS INC (PEGA) earns a quality factor score of 44/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 18.4%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 8.8% versus the sector average of 3.3%.

On a margin basis, PEGASYSTEMS INC reports gross margins of 73.1%, compared to 35.8% for the sector. The operating margin is 7.8% (sector: 6.2%). Net profit margin stands at 8.2%, versus 3.9% for the average Industrials stock. Revenue growth is running at 8.6% on a trailing basis, compared to 6.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

PEGA Debt, Balance Sheet, and Financial Health

PEGASYSTEMS INC has a debt-to-equity ratio of 107.0%, compared to the Industrials sector average of 70.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 1.33x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $149M.

PEGA has a beta of 1.18, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for PEGASYSTEMS INC is 36/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.

PEGASYSTEMS INC Revenue and Earnings History — Quarterly Trend

In TTM 2026, PEGASYSTEMS INC reported revenue of $1.57B and earnings per share (EPS) of $2.30. Net income for the quarter was $144M. Gross margin was 73.1%. Operating income came in at $147M.

In FY 2025, PEGASYSTEMS INC reported revenue of $1.75B and earnings per share (EPS) of $2.30. Net income for the quarter was $393M. Gross margin was 75.9%. Revenue grew 16.6% year-over-year compared to FY 2024. Operating income came in at $263M.

In Q3 2025, PEGASYSTEMS INC reported revenue of $381M and earnings per share (EPS) of $0.25. Net income for the quarter was $43M. Gross margin was 72.2%. Revenue grew 17.3% year-over-year compared to Q3 2024. Operating income came in at $14M.

In Q2 2025, PEGASYSTEMS INC reported revenue of $385M and earnings per share (EPS) of $0.18. Net income for the quarter was $30M. Gross margin was 71.5%. Revenue grew 9.5% year-over-year compared to Q2 2024. Operating income came in at $17M.

Over the past 8 quarters, PEGASYSTEMS INC has demonstrated a growth trajectory, with revenue expanding from $351M to $1.57B. Investors analyzing PEGA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

PEGA Dividend Yield and Income Analysis

PEGASYSTEMS INC (PEGA) currently pays a dividend yield of 0.1%. At this yield, a $10,000 investment in PEGA stock would generate approximately $$13.00 in annual dividend income. The net margin of 8.2% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.

PEGA Momentum and Technical Analysis Profile

PEGASYSTEMS INC (PEGA) has a momentum factor score of 20/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 54/100 reflects moderate short selling activity.

PEGA vs Competitors — Industrials Sector Ranking and Peer Comparison

Within the Industrials sector, PEGASYSTEMS INC (PEGA) ranks #459 out of 752 stocks based on the Blank Capital composite score. This places PEGA in the lower half of all Industrials stocks in our coverage universe. Key competitors and sector peers include South Bow Corp (SOBO) with a score of 56.5/100, TSAKOS ENERGY NAVIGATION LTD (TEN) with a score of 61.4/100, Great Lakes Dredge & Dock CORP (GLDD) with a score of 56.7/100, Tri Pointe Homes, Inc. (TPH) with a score of 57.3/100, and Clear Channel Outdoor Holdings, Inc. (CCO) with a score of 52.2/100.

Comparing PEGA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PEGA vs S&P 500 (SPY) comparison to assess how PEGASYSTEMS INC stacks up against the broader market across all factor dimensions.

PEGA Next Earnings Date

No upcoming earnings date has been announced for PEGASYSTEMS INC (PEGA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy PEGA? — Investment Thesis Summary

The quantitative profile for PEGASYSTEMS INC suggests caution. Momentum is weak at 20/100, a headwind for near-term performance. High volatility (stability score 36/100) increases portfolio risk.

In summary, PEGASYSTEMS INC (PEGA) earns a Reduce rating with a composite score of 38.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PEGA stock.

Related Resources for PEGA Investors

Explore more research and tools: PEGA vs S&P 500 comparison, top Industrials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare PEGA head-to-head with peers: PEGA vs SOBO, PEGA vs TEN, PEGA vs GLDD.