Filing Flows › Pegasystems (PEGA) › Q1 2026
Pegasystems (PEGA) Q1 2026 earnings results (first quarter 2026)
10-Q filed Apr 21, 2026
Pegasystems (PEGA) reported revenue of $430M for the first quarter 2026 (Q1 2026), -10% from a year earlier and -15% from the quarter before. Operating margin was 8.6%, net earnings $32.8M (7.6% of revenue).
Pegasystems, Q1 2026: revenue $430M (-10% year over year), operating margin 8.6%, net earnings $32.8M, operating cash flow $212M. The chart follows the revenue to costs, profit and cash.
| Q1 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $430M | -15% | -10% |
| Gross profit | $323M | -19% | -13% |
| Operating profit | $37.1M | -64% | -71% |
| Net earnings | $32.8M | -86% | -62% |
| Operating cash flow | $212M | +34% | +4% |
| Free cash flow | $207M | +36% | +2% |
What changed
Revenue was $430.0M in Q1 2026, down 10% year over year and down 15% from the previous quarter. Pega Cloud was the largest line at 48% of revenue. Subscription license lost $92.9M year over year (down 49%), 203% of the total change.
Gross margin was 75.2%, down 3.3 points from Q1 2025. Operating profit was $37.1M, a 8.6% margin (down 18.1 points year over year). Operating expenses grew 16% against a revenue fall of 10%. The fastest-growing cost line was General & admin (+44%). Net earnings were $32.8M, down 62% year over year. The effective tax rate was 17.5%.
Operating cash flow was $212.3M (up 4% year over year), 648% of net earnings. Non-cash charges added back $2.9M of depreciation and amortization and $45.8M of share-based compensation. Working capital and other items added $130.7M. Capital expenditures of $5.7M left free cash flow of $206.5M.
Questions
What was Pegasystems' revenue in the first quarter 2026?
Pegasystems (PEGA) reported revenue of $430M for the first quarter 2026 (Q1 2026), -10% from a year earlier and -15% from the quarter before.
Was Pegasystems profitable in the first quarter 2026?
Operating profit was $37.1M (8.6% of revenue) and net earnings $32.8M.
Source: Pegasystems 10-Q on SEC EDGAR.