Pegasystems Inc.PEGA
NasdaqGS•Technology•Software - Application
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software 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 Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine, which can predict a customer's behavior and recommend the next best action to take across channels in real-time; 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; and Pega Platform, a software for AI-powered workflow automation for increasing the efficiency of clients' processes and operational workflows. The company also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client's business, such as customer types, lines of business, geographies, etc.; Pega GenAI Blueprint to rapidly prototype and accelerate the development and deployment of applications; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers enablement content for Pega product implementations, such as instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries 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 Waltham, Massachusetts.
Pegasystems Inc. (PEGA) reported trailing twelve months revenue of $1.70B as of March 2026, a 3.5% increase year-over-year. Quarterly revenue reached $429.97M, reflecting continued top-line momentum.
Pegasystems Inc. generated $340.78M in TTM net income, with quarterly EBITDA of $40.08M. The operating margin contracted from 26.7% to 8.6%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (8.6%) and net margin (7.6%) indicates tight cost control with minimal non-operating drag. Net margin has narrowed from 18.0% a year ago, reflecting increased costs or interest expense.
PEGA trades at a P/E of 20.5x (in line with broad market averages) and a P/S of 4.1x. The price-to-book ratio of 9.9x indicates a significant premium over book value.
The company generated $206.53M in free cash flow over the trailing twelve months, a 2.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $1.55B in total assets with no in long-term debt against $705.91M in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 11.7%. The business may lack pricing power or face rising costs.'
Consistently high ROE averaging 35.6% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
Revenue shows resilience with 5 of 7 quarters posting growth — demand is generally stable but has seen some soft patches.
Data-driven red flags and warnings across 21 quarters
Operating margins dropped 32.7% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF covers net income by 2.3x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation