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Pegasystems (PEGA) earnings and revenue breakdown
Latest: Q3 2026 · 10-Q filed Oct 20, 2026 · Pegasystems (PEGA) Q3 2026 earnings results →
Q3 2026 Revenue up 3% year over year to $393M · 4¢ of every $1 of revenue kept as net profit · operating margin 3.8%
Pegasystems made $393M in Q3 2026 (+3% Y/Y): Subscription $347M, Consulting $46.2M. Operating margin 3.8%, net earnings $14.1M. See where every dollar goes — costs, profit and cash — as a Sankey from the 10-Q filed Oct 20, 2026.
Drawing the Sankey…
Open the interactive Sankey → click any line for what the company wrote about it, compare Y/Y and Q/Q, export as PNG or PDF
What changed this quarter
Revenue was $393.4M in Q3 2026, up 3% year over year and down 7% from the previous quarter. Pega Cloud was the largest line at 56% of revenue. Pega Cloud added $34.4M year over year (up 19%), 286% of the total change. Consulting declined 18%.
Gross margin was 73.6%, up 1.4 points from Q3 2025. Operating profit was $14.9M, a 3.8% margin (unchanged year over year). Of the extra revenue versus Q3 2025, 3% reached operating profit, below the 4% margin then. Operating expenses grew 5% against revenue growth of 3%. Net earnings were $14.1M, down 68% year over year. The effective tax rate was 20.7%.
Operating cash flow was $6.1M (down 89% year over year), 43% of net earnings. Non-cash charges added back $3.5M of depreciation and amortization and $28.7M of share-based compensation. Working capital and other items used $40.2M. Capital expenditures of $4.5M left free cash flow of $1.6M.
Quarterly history
| Quarter | Form | Filed | Revenue | Y/Y | Op. margin | Net earnings | Op. cash flow |
|---|---|---|---|---|---|---|---|
| Q3 2026 | 10-Q | Oct 20, 2026 | $393M | +3% | 3.8% | $14.1M | $6.1M |
| Q2 2026 | 10-Q | Jul 21, 2026 | $421M | +9% | 4.0% | $13.3M | $86.0M |
| Q1 2026 | 10-Q | Apr 21, 2026 | $430M | -10% | 8.6% | $32.8M | $212M |
| Q4 2025 | 10-K | Feb 10, 2026 | $504M | +3% | 20.7% | $235M | $158M |
| Q3 2025 | 10-Q | Oct 21, 2025 | $381M | +17% | 3.8% | $43.4M | $56.3M |
| Q2 2025 | 10-Q | Jul 22, 2025 | $385M | +10% | 4.5% | $30.1M | $86.3M |
| Q1 2025 | 10-Q | Apr 22, 2025 | $476M | +44% | 26.7% | $85.4M | $204M |
Charts
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💵Where each $1 goesinteractive
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🌏Named in Asian annual reportsinteractive
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🔄Rotation against the market and its industry (RRG)interactive
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🔍Earnings qualityinteractive
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⚖️Fair value by methodinteractive
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🔭Outlook & guidanceinteractive
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📈Investments: gains and what it boughtinteractive
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🏭Its industry’s money flow (input-output)interactive
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About Pegasystems
We develop, market, license, host, and support enterprise software that helps organizations optimize decisions and processes in real-time so they can deliver outcomes that transform their business. Our powerful platform for enterprise artificial intelligence (“AI”) decisioning and workflow automation enables the world’s leading brands and government agencies to hyper-personalize customer experiences, automate customer service, and streamline operations, mission-critical business processes, and workflows, and transform legacy systems. Clients can leverage our AI technology and scalable architecture to accelerate their digital transformation. In addition, our sales and client success teams, world-class partners, and clients can leverage Pega Blueprint TM (“Blueprint”) to rapidly prototype and accelerate the development and deployment of applications quickly and collaboratively.
In its own words, from its 10-K, filed Feb 10, 2026.
Pegasystems against its Services-Computer Processing & Data Preparation peers
The largest companies of the same SEC industry, each at its latest quarter. Revenue growth: +3% against the peers' median +6%. Operating margin: 3.8% against the peers' median 11.8%.
| Company | Quarter | Revenue | Y/Y | Op. margin |
|---|---|---|---|---|
| PEGA Pegasystems | Q3 2026 | $393M | +3% | 3.8% |
| ADP Automatic Data Processing | Q1 FY27 | $5.5B | +6% | 23.9% |
| DXC DXC Technology | Q2 FY27 | $3.0B | -4% | 6.2% |
| WDAY Workday | Q2 FY27 | $2.6B | +13% | 11.8% |
| TOST Toast | Q3 2026 | $2.0B | +21% | 8.3% |
| RDDT Reddit | Q3 2026 | $895M | +53% | 29.2% |
| VRSK Verisk Analytics | Q3 2026 | $809M | +5% | 45.2% |
| RNG RingCentral | Q3 2026 | $676M | +6% | 8.0% |
| PLTK Playtika Holding | Q3 2026 | $674M | -0.1% | 17.2% |
Source: Pegasystems 10-Q on SEC EDGAR · CIK 1013857 · Services-Computer Processing & Data Preparation
13F: who owns PEGA and who is buying
More on PEGA
History
Every quarter: Q3 2026 results · Q2 2026 results · Q1 2026 results · Q4 2025 results · Q3 2025 results · Q2 2025 results · Q1 2025 results
- Pegasystems gross margin by quarter
- Pegasystems operating margin by quarter
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- Pegasystems Subscription revenue by quarter
- Pegasystems Consulting revenue by quarter