PEGA PEGASYSTEMS INC
Price Chart
Executive Summary
Pegasystems held an investor session on June 8, 2026, highlighting its completed subscription transition, strong Pega Cloud ACV growth (29% YoY in Q1 2026), expanding margins, and a long-term free cash flow target of $700M+ by 2028. The filing is a Regulation FD disclosure of an investor presentation with forward-looking projections, not a new financial event or earnings release.
Actionable Insight
Monitor execution against the long-term FCF and margin targets, particularly Pega Cloud ACV growth trajectory and Rule of 40 achievement. No immediate catalyst; typical neutral investor day read-through.
Key Facts
- Pega Cloud ACV grew 29% YoY in Q1 2026 (as reported), up from 16% in Q1 2024.
- Total ACV (constant currency) reached $1,578M as of December 31, 2025, up 14% YoY.
- Free cash flow was $207M in Q1 2026 and is guided to $575M for FY 2026, with a 2028 target of $700M+.
- Non-GAAP operating margin improved to 28% in 2025, up from 6% in 2022; long-term target is 35-40%+.
- Rule of 40 achievement improved from 14% in 2022 to 45% in 2025.
- Company returned over $600M to shareholders from 2023-2025 via buybacks and dividends, representing ~60% of cumulative free cash flow.
- Stock-based compensation was 9.6% of revenue in 2025, within the 'discipline' range for mid-cap software.
- Long-term targets include 80% non-GAAP gross margin, 30% sales & marketing, 17% R&D, and 35-40%+ free cash flow margins by 2027/2028.
Financial Impact
Investor presentation with forward-looking financial targets: free cash flow guided to $575M in FY2026 (from $491M in 2025) and $700M+ by 2028; operating margin at 28% non-GAAP with long-term target of 35-40%+; no new quarterly financial results reported.
Risk Factors
- Forward-looking projections depend on sustained ACV growth and margin expansion which may not materialize.
- Competitive pressures and AI investment costs could pressure margins.
- Stock-based compensation remains elevated at ~10% of revenue, potentially diluting shareholders.
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001013857-26-000039 |
| Document: pega-20260608.htm | 0001013857-26-000039 |
| Document: 0001013857-26-000039-index-headers.html | 0001013857-26-000039 |
| Document: 0001013857-26-000039-index.html | 0001013857-26-000039 |
| Document: 0001013857-26-000039.txt | 0001013857-26-000039 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 8, 2026
1d ago
|
8-K
| $35.10 awaiting T+20 | awaiting T+20 | — | $35.11 (+0.03%) |
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Apr 24, 2026
6w ago
|
DEFA14A
| $36.77 $34.33 | ▼ −6.64% | ▼ −11.59% | $35.11 (−4.51%) |
|
Apr 21, 2026
7w ago
|
8-K
| $37.48 $33.50 | ▲ +10.62% | ▲ +13.78% | $35.11 (+6.32%) |
|
Mar 10, 2026
13w ago
|
Insider Cluster
| $44.66 $41.20 | ▼ −7.74% | ▼ −7.59% | $35.11 (−21.38%) |
|
Mar 10, 2026
13w ago
|
Insider Cluster
| $44.66 $41.20 | ▼ −7.74% | ▼ −7.59% | $35.11 (−21.38%) |
|
Mar 10, 2026
13w ago
|
Insider Cluster
| $44.66 $41.20 | ▼ −7.74% | ▼ −7.59% | $35.11 (−21.38%) |
|
Mar 10, 2026
13w ago
|
Insider Cluster
| $44.66 $41.20 | ▲ +7.74% | ▲ +7.59% | $35.11 (+21.38%) |
US Market Status
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