PEGA
Pegasystems Inc.

Pegasystems Inc.PEGA

Technology · Software - Application
32.40USD
-3.49%
Nov 08, 2026
PEGA overview ready
Leader in Governed AI Workflow Orchestration for Regulated Enterprises
PEGA is a direct enterprise-software beneficiary of demand for governed AI-enabled process transformation, particularly where regulated or operationally critical workflows require orchestration, decisioning, traceability, and ongoing change management.
Theme not measured
Workflow Automation & Low-Code has no leadership state this session.
Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the cash the business actually produces.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger enterprise software vendors.
Market Nov 6Filing Sep 30Price action Nov 7Research Oct 20

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction3.4BusinessPerformance5.0BusinessQuality8.1Valuation7.7ThemeMomentum—Mixed — Revenue is growing at a steady pace (+3.1% year over year). Diluted EPS fell 67% year over year to $0.08. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
Workflow Automation & Low-Code — Workflow Automation & Low-Code is tracked (3–4 priced members) — too few for a leadership state
Its economic family, Software, reads Weakening (+6.0pp vs SPY) — the family’s reading, not this theme’s.
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads damaged structure, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryWeak / unconfirmed recovery

The daily chart may be improving, but the weekly fast averages have not been reclaimed — the recovery is not yet confirmed on the higher timeframe.

Key Financials

Market Cap
$5.3B
Avg Volume (60D)
2.6M
60 sessions
Revenue Growth YoY
+16.6%
FY2025 vs FY2024
Gross Margin
+75.9%
Trailing twelve months
Operating Margin
+9.9%
Trailing twelve months
Free Cash Flow Yield
+8.3%
Distance from 200DMA
-11.3%
P/E
18.0x
Market metrics as of Nov 6, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Mixed

Revenue is growing at a steady pace (+3.1% year over year). Diluted EPS fell 67% year over year to $0.08.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthGrowing
+3.1%
$393M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. -9.6%
  3. +9.4%
  4. +3.1%
Earnings growthDeclining
-67%
Diluted EPS $0.08 vs $0.24 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. -61%
  3. -53%
  4. -67%
Operating marginStable
3.8%
-0.0 pp YoY · gross margin 73.6% (+1.4 pp)

Business Quality

8.1 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Both valuation perspectives agree this company is cheap.
Pegasystems Inc. has a Cheap valuation stance because current market expectations look undemanding relative to the cash the business actually produces. It trades at a 8.3% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
PEGA is a direct enterprise-software beneficiary of demand for governed AI-enabled process transformation, particularly where regulated or operationally critical workflows require orchestration, decisioning, traceability, and ongoing change management. The story is still emerging, so the exposure is real but early.
Opportunity
Moderate opportunity
Enterprise spending on platforms that coordinate AI agents, deterministic workflows, business rules, data context, approvals, auditability, and human oversight in mission-critical processes.
Key risk
Competition from larger enterprise software vendors.

Economic classification

Loading the economic classification…

Business & Markets

Technology · Software - Application
What they do

Pegasystems Inc. develops, licenses, hosts, and supports enterprise software focused on workflow automation, customer decisioning, and AI-powered business process orchestration across multiple global regions.

How it earns

Primarily subscription-based licensing and software-as-a-service revenue.

Products & services
Pega Infinity
Pega Customer Decision Hub
Pega Customer Service
Customers & end markets
Large enterprises
Financial services firms
Telecommunications companies
Government agencies
Market position

Leader in enterprise software for AI-powered workflow automation and customer decisioning.

Demand drivers
Medium cyclicality

Enterprise software spending can fluctuate with broader IT budgets and economic cycles but is supported by digital transformation trends.