Filing Flows › Pegasystems (PEGA) › Q3 2026
Pegasystems (PEGA) Q3 2026 earnings results (third quarter 2026)
10-Q filed Oct 20, 2026
Pegasystems (PEGA) reported revenue of $393M for the third quarter 2026 (Q3 2026), +3% from a year earlier and -7% from the quarter before. Operating margin was 3.8%, net earnings $14.1M (3.6% of revenue).
Pegasystems, Q3 2026: revenue $393M (+3% year over year), operating margin 3.8%, net earnings $14.1M, operating cash flow $6.1M. The chart follows the revenue to costs, profit and cash.
| Q3 2026 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $393M | -7% | +3% |
| Gross profit | $290M | -7% | +5% |
| Operating profit | $14.9M | -11% | +3% |
| Net earnings | $14.1M | +6% | -68% |
| Operating cash flow | $6.1M | -93% | -89% |
| Free cash flow | $1.6M | -98% | -97% |
What changed
Revenue was $393.4M in Q3 2026, up 3% year over year and down 7% from the previous quarter. Pega Cloud was the largest line at 56% of revenue. Pega Cloud added $34.4M year over year (up 19%), 286% of the total change. Consulting declined 18%.
Gross margin was 73.6%, up 1.4 points from Q3 2025. Operating profit was $14.9M, a 3.8% margin (unchanged year over year). Of the extra revenue versus Q3 2025, 3% reached operating profit, below the 4% margin then. Operating expenses grew 5% against revenue growth of 3%. Net earnings were $14.1M, down 68% year over year. The effective tax rate was 20.7%.
Operating cash flow was $6.1M (down 89% year over year), 43% of net earnings. Non-cash charges added back $3.5M of depreciation and amortization and $28.7M of share-based compensation. Working capital and other items used $40.2M. Capital expenditures of $4.5M left free cash flow of $1.6M.
Questions
What was Pegasystems' revenue in the third quarter 2026?
Pegasystems (PEGA) reported revenue of $393M for the third quarter 2026 (Q3 2026), +3% from a year earlier and -7% from the quarter before.
Was Pegasystems profitable in the third quarter 2026?
Operating profit was $14.9M (3.8% of revenue) and net earnings $14.1M.
Source: Pegasystems 10-Q on SEC EDGAR.