Filing Flows › Pegasystems (PEGA) › Q2 2026
Pegasystems (PEGA) Q2 2026 earnings results (second quarter 2026)
10-Q filed Jul 21, 2026
Pegasystems (PEGA) reported revenue of $421M for the second quarter 2026 (Q2 2026), +9% from a year earlier and -2% from the quarter before. Operating margin was 4.0%, net earnings $13.3M (3.2% of revenue).
Pegasystems, Q2 2026: revenue $421M (+9% year over year), operating margin 4.0%, net earnings $13.3M, operating cash flow $86.0M. The chart follows the revenue to costs, profit and cash.
| Q2 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $421M | -2% | +9% |
| Gross profit | $313M | -3% | +14% |
| Operating profit | $16.6M | -55% | -4% |
| Net earnings | $13.3M | -59% | -56% |
| Operating cash flow | $86.0M | -59% | -0.3% |
| Free cash flow | $81.7M | -60% | -3% |
What changed
Revenue was $420.7M in Q2 2026, up 9% year over year and down 2% from the previous quarter. Pega Cloud was the largest line at 51% of revenue. Pega Cloud added $47.2M year over year (up 28%), 130% of the total change. Consulting declined 13%.
Gross margin was 74.3%, up 2.8 points from Q2 2025. Operating profit was $16.6M, a 4.0% margin (down 0.5 points year over year). Operating profit fell $643K even though revenue rose $36.2M versus Q2 2025, so costs grew faster than sales. Operating expenses grew 15% against revenue growth of 9%. The fastest-growing cost line was General & admin (+38%). Net earnings were $13.3M, down 56% year over year. The effective tax rate was 28.0%.
Operating cash flow was $86.0M (roughly flat year over year), 645% of net earnings. Non-cash charges added back $2.9M of depreciation and amortization and $36.2M of share-based compensation. Working capital and other items added $33.5M. Capital expenditures of $4.2M left free cash flow of $81.7M.
Questions
What was Pegasystems' revenue in the second quarter 2026?
Pegasystems (PEGA) reported revenue of $421M for the second quarter 2026 (Q2 2026), +9% from a year earlier and -2% from the quarter before.
Was Pegasystems profitable in the second quarter 2026?
Operating profit was $16.6M (4.0% of revenue) and net earnings $13.3M.
Source: Pegasystems 10-Q on SEC EDGAR.