Pega Cloud ACV Grows 20% in Q3 2026

WALTHAM, Mass.--(BUSINESS WIRE)--Oct 20, 2026--

Pegasystems Inc. (NASDAQ: PEGA), the enterprise AI software company for mission-critical work, released its financial results for the third quarter of 2026.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20261020404232/en/

"The AI market is still sorting itself out, but we’re confident in our long-term winning strategy to harness models like Claude, OpenAI GPT, and Gemini to help enterprises achieve predictable business outcomes at predictable costs while maintaining the governance, security, and control required for mission-critical operations,” said Alan Trefler, founder and CEO, Pega. "Our edge is decades of expertise in workflow automation and decisioning, enabling enterprises to scale AI with confidence, control, and economic efficiency.”

"While our ACV growth through the first three quarters of 2026 did not reflect the opportunity we see in the market, largely due to go-to-market execution challenges, our Q3 ACV add was the strongest of the year and reinforces our confidence in the demand for our solutions,” said Ken Stillwell, COO and CFO, Pega. “We are taking decisive actions to improve execution, accelerate growth, and keep us on track to deliver $700M or more of free cash flow in 2028.”

Financial and performance metrics (1)

Purchasing behaviors continue to evolve as clients subject large technology investments to greater scrutiny as AI disrupts the industry. As a result, our ACV growth rate significantly slowed during the nine months ended September 30, 2026, as compared to the same period last year. These factors may continue to adversely affect the ACV growth rate for the rest of the year.

Reconciliation of ACV and Constant Currency ACV

Cash Flow

As a result of the factors discussed under ACV above, our cash flow generation may continue to be adversely affected for the rest of the year.

Quarterly conference call

A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, October 21, 2026.

Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (833) 461-5787 (domestic) or 1 (626) 884-3620 (international) and using Conference ID 591038520, or via https://events.q4inc.com/attendee/591038520 by logging onto www.pega.com at least five minutes prior to the event's broadcast and clicking on the webcast icon in the Investors section.

Discussion of non-GAAP financial measures

Our non-GAAP financial measures should only be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. We believe that these measures help investors understand our core operating results and prospects, which is consistent with how management measures and forecasts our performance without the effect of often one-time charges and other items outside our normal operations. Management uses these measures to assess the performance of the company's operations and establish operational goals and incentives. They are not a substitute for financial measures prepared under U.S. GAAP. Refer to the schedules at the end of this release for additional information, including a reconciliation of GAAP and non-GAAP measures.

Forward-looking statements

Certain statements in this press release may be "forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements about the growth and development of our business and market.

Words such as expects, anticipates, intends, plans, believes, will, could, should, estimates, may, targets, strategies, intends to, projects, positions, forecasts, guidance, likely, and usually or variations of such words and other similar expressions identify forward-looking statements. These statements represent our views only as of the date the statement was made and are based on current expectations and assumptions.

Forward-looking statements deal with future events and are subject to risks and uncertainties that are difficult to predict, including, but not limited to:

These risks and others that may cause actual results to differ materially from those expressed in such forward-looking statements are described further in Part I of our Annual Report on Form 10-K for the year ended December 31, 2025, and other filings we make with the SEC.

Investors are cautioned not to place undue reliance on such forward-looking statements, and there are no assurances that the results included in such statements will be achieved. Although subsequent events may cause our view to change, except as required by applicable law, we do not undertake and expressly disclaim any obligation to publicly update or revise these forward-looking statements, whether as the result of new information, future events, or otherwise.

Any forward-looking statements in this press release represent our views as of October 20, 2026.

About Pegasystems

Pega delivers the platform to reimagine, run, and evolve the processes and decisions an enterprise can't afford to get wrong. We combine AI with proven architecture to keep mission-critical operations governed, scalable, and continuously adaptable. Since 1983, the world's largest organizations have trusted Pega to turn transformation ambition into durable results. Learn more at www.pega.com.

All trademarks are the property of their respective owners.

Our non-GAAP financial measures reflect the following adjustments:

Our GAAP effective income tax rate is subject to significant fluctuations due to several factors, including our stock-based compensation plans, research and development tax credits, and the valuation allowance on our deferred tax assets in the U.S. and U.K. We determine our non-GAAP income tax rate using applicable rates in taxing jurisdictions and assessing certain factors, including historical and forecasted earnings by jurisdiction, discrete items, and ability to realize tax assets. We believe it is beneficial for our management to review our non-GAAP results consistent with our annual plan’s effective income tax rate as established at the beginning of each year, given tax rate volatility.

 

Cash Flow charts for Pega's Q3 2026 earnings report.

Total ACV Growth chart for Pega's Q3 2026 earnings report.

WASHINGTON (AP) — President Donald Trump and Vice President JD Vance on Tuesday announced a $25 million program to encourage the public to blow the whistle on suspected fraud in the U.S. government as they ramp up efforts to end the abuse of federal programs and dollars.

The White House said that under the Fraud Whistleblower Incentive Program, anyone who submits a tip that leads to a fraud conviction or a significant federal enforcement action is eligible to receive up to $30,000, and that the Justice Department will administer the program.

During the announcement, Trump said payments will amount to a 1% commission on the amount of fraud the tip helps uncover. Trump also said he will decide who gets reward money in cases where more than one person claims to have provided the tip.

“I will be the arbitrator of all of these decisions,” Trump in the Oval Office with Vance and other administration officials standing behind him. “It'll be a binding arbitration.”

Trump said journalists could participate in the program.

The Republican president has undertaken an aggressive effort to eliminate fraud in government, establishing a task force on the topic in March and putting Vance in charge of it.

Critics have accused Trump and his family of profiting from the presidency through their many business ventures. The White House says Trump acts only with the best interests of the American people in mind.

Vance, who said his work leading the task force is “fun,” said tax dollars are being stolen.

“The president has said it must stop. It is stopping. And if you want to help us stop it, you get to share in the rewards," the vice president said.

The White House had said Trump would present a $10,000 check to Nick Shirley, a right-wing influencer who posted a video last year that said members of Minnesota’s Somali community were running fake childcare centers to collect federal subsidies. But a check was not given to Shirley in the presence of journalists.

The 24-year-old's video caught the attention of the Trump administration and conservative activists, though inspectors said the centers were operating as expected. Investigations, searches and arrests followed.

Shirley said during the event that fraud robs from poor and needy people.

“When you expose fraud, you help save America,” he said.

In July, Fahima Mahamud pleaded guilty to wire fraud and conspiracy to defraud the United States by submitting inflated reimbursement claims for meals allegedly served to children at her childcare center, according to the Justice Department.

The White House says Mahamud was featured in Shirley's video.

Nick Shirley speaks in the Oval Office of the White House, Tuesday, Oct. 20, 2026, during an event with President Donald Trump in Washington. (AP Photo/Jacquelyn Martin)

President Donald Trump speaks in the Oval Office of the White House, Tuesday, Oct. 20, 2026, in Washington, as Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz, Vice President JD Vance and Andrew Ferguson, chairman of the Federal Trade Commission listen. (AP Photo/Jacquelyn Martin)

President Donald Trump listens as Centers for Medicare & Medicaid Services administrator Dr. Mehmet Oz speaks in the Oval Office of the White House, Tuesday, Oct. 20, 2026, in Washington. (AP Photo/Jacquelyn Martin)

Vice President JD Vance speaks during a midterm campaign rally at Hyder Warehouse in Hendersonville, N.C., Monday, Oct. 19, 2026. (Kenny Holston/The New York Times via AP, Pool)

President Donald Trump dances at a campaign rally at Heartland Credit Union Arena, Monday, Oct. 19, 2026, in Park City, Kan. (AP Photo/Charlie Riedel)