Filing Flows › Pegasystems (PEGA) › Q3 2026 › vs Q2 2026
Pegasystems (PEGA) Q3 2026 vs Q2 2026 (quarter over quarter)
Pegasystems's revenue fell $27.4M (-7%) from $421M in Q2 2026 to $393M in Q3 2026. The biggest changes: Subscription −$23.3M (-6%); Consulting −$4.0M (-8%). Gross margin 73.6% against 74.3% (-0.7 pts).
Pegasystems, Q3 2026: revenue $393M (+3% year over year), operating margin 3.8%, net earnings $14.1M, operating cash flow $6.1M. The chart draws each line against Q2 2026, the increases inside each band.
Margins
| Q3 2026 | Q2 2026 | Change | |
|---|---|---|---|
| Gross margin | 73.6% | 74.3% | -0.7 pts |
| Operating margin | 3.8% | 4.0% | -0.2 pts |
| Net margin | 3.6% | 3.2% | +0.4 pts |
| Free cash flow margin | 0.4% | 19.4% | -19.0 pts |
Every line
| Line | Q3 2026 | Q2 2026 | Change | % |
|---|---|---|---|---|
| Pega Cloud | $219M | $214M | $5.0M | +2% |
| Maintenance | $72.7M | $74.5M | −$1.9M | -3% |
| Subscription license | $55.6M | $82.0M | −$26.4M | -32% |
| Subscription | $347M | $370M | −$23.3M | -6% |
| Consulting | $46.2M | $50.2M | −$4.0M | -8% |
| Revenue | $393M | $421M | −$27.4M | -7% |
| Gross profit | $290M | $313M | −$23.2M | -7% |
| Cost of revenue | $104M | $108M | −$4.2M | -4% |
| Other income, net | $2.9M | $1.9M | $1.0M | +55% |
| Operating profit | $14.9M | $16.6M | −$1.8M | -11% |
| Operating expenses | $275M | $296M | −$21.4M | -7% |
| Pre-tax earnings | $17.8M | $18.5M | −$735K | -4% |
| Research & development | $74.3M | $84.2M | −$9.9M | -12% |
| Sales & marketing | $144M | $165M | −$21.7M | -13% |
| General & admin | $38.6M | $43.7M | −$5.1M | -12% |
| Other operating costs | $18.0M | $2.7M | $15.2M | +557% |
| Net earnings | $14.1M | $13.3M | $758K | +6% |
| Income tax | $3.7M | $5.2M | −$1.5M | -29% |
| Operating cash sources | $46.3M | $52.4M | −$6.2M | -12% |
| Depreciation & amortization | $3.5M | $2.9M | $638K | +22% |
| Share-based compensation | $28.7M | $36.2M | −$7.5M | -21% |
| Working capital & other | $40.2M | −$33.5M | $73.7M | — |
| Operating cash flow | $6.1M | $86.0M | −$79.9M | -93% |
| Free cash flow (OCF − capex) | $1.6M | $81.7M | −$80.2M | -98% |
| Capital expenditures | $4.5M | $4.2M | $266K | +6% |
Questions
How much did Pegasystems's revenue grow quarter over quarter in Q3 2026?
Pegasystems's revenue fell $27.4M (-7%) from $421M in Q2 2026 to $393M in Q3 2026.
What drove Pegasystems's revenue change in Q3 2026?
Subscription −$23.3M (-6%); Consulting −$4.0M (-8%).