Filing Flows › Pegasystems (PEGA) › Q2 2026 › vs Q1 2026
Pegasystems (PEGA) Q2 2026 vs Q1 2026 (quarter over quarter)
Pegasystems's revenue fell $9.3M (-2%) from $430M in Q1 2026 to $421M in Q2 2026. The biggest changes: Subscription −$4.7M (-1%); Consulting −$4.5M (-8%). Gross margin 74.3% against 75.2% (-0.8 pts).
Pegasystems, Q2 2026: revenue $421M (+9% year over year), operating margin 4.0%, net earnings $13.3M, operating cash flow $86.0M. The chart draws each line against Q1 2026, the increases inside each band.
Margins
| Q2 2026 | Q1 2026 | Change | |
|---|---|---|---|
| Gross margin | 74.3% | 75.2% | -0.8 pts |
| Operating margin | 4.0% | 8.6% | -4.7 pts |
| Net margin | 3.2% | 7.6% | -4.5 pts |
| Free cash flow margin | 19.4% | 48.0% | -28.6 pts |
Every line
| Line | Q2 2026 | Q1 2026 | Change | % |
|---|---|---|---|---|
| Pega Cloud | $214M | $205M | $8.9M | +4% |
| Subscription license | $82.0M | $94.9M | −$12.8M | -14% |
| Maintenance | $74.5M | $75.3M | −$789K | -1% |
| Subscription | $370M | $375M | −$4.7M | -1% |
| Consulting | $50.2M | $54.8M | −$4.5M | -8% |
| Revenue | $421M | $430M | −$9.3M | -2% |
| Gross profit | $313M | $323M | −$10.5M | -3% |
| Cost of revenue | $108M | $107M | $1.3M | +1% |
| Other income, net | $1.9M | $2.6M | −$679K | -27% |
| Operating profit | $16.6M | $37.1M | −$20.5M | -55% |
| Operating expenses | $296M | $286M | $10.0M | +3% |
| Pre-tax earnings | $18.5M | $39.7M | −$21.2M | -53% |
| Research & development | $84.2M | $82.0M | $2.1M | +3% |
| Sales & marketing | $165M | $156M | $9.8M | +6% |
| General & admin | $43.7M | $48.6M | −$4.8M | -10% |
| Net earnings | $13.3M | $32.8M | −$19.4M | -59% |
| Income tax | $5.2M | $6.9M | −$1.8M | -25% |
| Depreciation & amortization | $2.9M | $2.9M | −$67K | -2% |
| Share-based compensation | $36.2M | $45.8M | −$9.6M | -21% |
| Working capital & other | $33.5M | $131M | −$97.2M | -74% |
| Operating cash flow | $86.0M | $212M | −$126M | -59% |
| Free cash flow (OCF − capex) | $81.7M | $207M | −$125M | -60% |
| Capital expenditures | $4.2M | $5.7M | −$1.5M | -26% |
Questions
How much did Pegasystems's revenue grow quarter over quarter in Q2 2026?
Pegasystems's revenue fell $9.3M (-2%) from $430M in Q1 2026 to $421M in Q2 2026.
What drove Pegasystems's revenue change in Q2 2026?
Subscription −$4.7M (-1%); Consulting −$4.5M (-8%).