Filing Flows › Pegasystems (PEGA) › Q3 2026 › vs Q3 2025
Pegasystems (PEGA) Q3 2026 vs Q3 2025 (year over year)
Pegasystems's revenue rose $12.0M (+3%) from $381M in Q3 2025 to $393M in Q3 2026. The biggest changes: Subscription +$22.2M (+7%); Consulting −$10.2M (-18%). Gross margin 73.6% against 72.2% (+1.4 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 Q3 2025, the increases inside each band.
Margins
| Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
| Gross margin | 73.6% | 72.2% | +1.4 pts |
| Operating margin | 3.8% | 3.8% | -0.0 pts |
| Net margin | 3.6% | 11.4% | -7.8 pts |
| Free cash flow margin | 0.4% | 13.6% | -13.2 pts |
Every line
| Line | Q3 2026 | Q3 2025 | Change | % |
|---|---|---|---|---|
| Pega Cloud | $219M | $185M | $34.4M | +19% |
| Maintenance | $72.7M | $79.6M | −$7.0M | -9% |
| Subscription license | $55.6M | $60.8M | −$5.2M | -9% |
| Subscription | $347M | $325M | $22.2M | +7% |
| Consulting | $46.2M | $56.4M | −$10.2M | -18% |
| Revenue | $393M | $381M | $12.0M | +3% |
| Gross profit | $290M | $275M | $14.1M | +5% |
| Cost of revenue | $104M | $106M | −$2.0M | -2% |
| Other income, net | $2.9M | $9.6M | −$6.7M | -70% |
| Operating profit | $14.9M | $14.5M | $392K | +3% |
| Operating expenses | $275M | $261M | $13.7M | +5% |
| Pre-tax earnings | $17.8M | $24.1M | −$6.3M | -26% |
| Research & development | $74.3M | $78.8M | −$4.4M | -6% |
| Sales & marketing | $144M | $140M | $3.6M | +3% |
| General & admin | $38.6M | $42.1M | −$3.5M | -8% |
| Net earnings | $14.1M | $43.4M | −$29.3M | -68% |
| Income tax | $3.7M | −$19.3M | $23.0M | — |
| Operating cash sources | $46.3M | $89.5M | −$43.2M | -48% |
| Depreciation & amortization | $3.5M | $3.1M | $409K | +13% |
| Share-based compensation | $28.7M | $43.0M | −$14.4M | -33% |
| Working capital & other | $40.2M | $33.2M | $7.0M | +21% |
| Operating cash flow | $6.1M | $56.3M | −$50.2M | -89% |
| Free cash flow (OCF − capex) | $1.6M | $51.8M | −$50.3M | -97% |
| Capital expenditures | $4.5M | $4.5M | $37K | +0.8% |
Questions
How much did Pegasystems's revenue grow year over year in Q3 2026?
Pegasystems's revenue rose $12.0M (+3%) from $381M in Q3 2025 to $393M in Q3 2026.
What drove Pegasystems's revenue change in Q3 2026?
Subscription +$22.2M (+7%); Consulting −$10.2M (-18%).