PEGASYSTEMS INC — Form 8-K
Filed October 20, 2026 · analyzed by the 8-K Agent
8-K
▼ Likely negative
significance 38/100
What the filing says
Pegasystems reported Q3 2026 results with Pega Cloud ACV reaching $976M (59% of total ACV), growing 20% YoY, and total ACV of $1,653M, up 6% ($96.4M) from $1,557M in Q3 2025. However, GAAP net income fell 62% to $60.2M (nine months) due to slower overall ACV growth attributed to go-to-market execution challenges and client technology spending scrutiny. The company took a $16M litigation settlement charge in Q3 and reduced free cash flow by 14% to $289.8M (nine months).
Why this rating
Cloud strength (+20%) offsets overall ACV deceleration (6%). Profit decline material but execution-driven, not product-driven. At $5B market cap, $96M ACV growth ≈2% of valuation; $16M settlement immaterial. Backlog $2B (+15%) supports medium-term recovery.
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