Pegasystems(NASDAQ) PEGA

Pegasystems NASDAQ:PEGA helps large organizations automate their daily work. The company makes software that connects business tasks to save time. These tools let agencies and brands give personal attention to customers.

Tools for Better Business

• Pega Cloud: Internet-based infrastructure for building and running applications; accounts for 51% of revenue.
• Subscription Licenses: Software installed on client systems for a specific period; accounts for 19% of revenue.
• Maintenance: Support and updates for clients using older software versions; accounts for 18% of revenue.
• Consulting: Expert services for system implementation and technical training; accounts for 12% of revenue.

How the Business Is Evolving

• Introduced Pega Blueprint to help clients prototype and deploy applications quickly.
• Expanded investments in artificial intelligence to automate customer service and operations.
• Repaid outstanding convertible senior notes in their entirety at maturity on March 1, 2025.
• Amended the secured revolving credit facility to increase borrowing capacity to $200 million on Oct. 16, 2026.
• Reduced workforce in 2026 to align company roles with an AI-first delivery model.

What Makes Pega Different

Pegasystems serves specialized industries like financial services and healthcare across the Americas, Europe, and Asia-Pacific. Its Pega Infinity suite combines customer engagement with digital process automation to handle manual office tasks. The company uses an AI-first delivery model to help legacy systems work with modern technology.

Financial Performance Highlights

• Annual contract value reached $1.7 billion as of Sept. 30, 2026, up 6% year over year.
• Total revenue was $393.4 million in the three months ended Sept. 30, 2026, up 3% year over year.
• Backlog reached $2.0 billion as of Sept. 30, 2026, up 15% year over year.
• Free cash flow hit $289.8 million in the nine months ended Sept. 30, 2026, down 14% year over year.

Bottom Line

Pegasystems has shifted from traditional software maintenance toward a cloud-based subscription model. This focus on artificial intelligence helps large organizations automate their most complex workflows.