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Here's What Key Metrics Tell Us About Pegasystems (PEGA) Q3 Earnings
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For the quarter ended September 2026, Pegasystems (PEGA - Free Report) reported revenue of $393.36 million, up 3.2% over the same period last year. EPS came in at $0.35, compared to $0.30 in the year-ago quarter.
The reported revenue represents a surprise of -8.31% over the Zacks Consensus Estimate of $429.02 million. With the consensus EPS estimate being $0.45, the EPS surprise was -22.22%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Pegasystems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual contract value (ACV) - Pega Cloud: $975.99 million compared to the $998.15 million average estimate based on two analysts.
Annual contract value (ACV): $1.65 billion compared to the $1.7 billion average estimate based on two analysts.
Annual contract value (ACV) - Subscription license: $416 million versus $427.4 million estimated by two analysts on average.
Annual contract value (ACV) - Maintenance: $261.32 million versus the two-analyst average estimate of $278.15 million.
Revenue- Subscription services: $291.58 million versus $303.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.
Revenue- Subscription license: $55.58 million compared to the $68.7 million average estimate based on three analysts. The reported number represents a change of -8.3% year over year.
Revenue- Consulting: $46.2 million compared to the $53.3 million average estimate based on three analysts. The reported number represents a change of -18.1% year over year.
Revenue- Pega Cloud: $218.93 million compared to the $232.96 million average estimate based on three analysts. The reported number represents a change of +18.6% year over year.
Revenue- Maintenance: $72.65 million versus the three-analyst average estimate of $70.96 million. The reported number represents a year-over-year change of -8.8%.
Revenue- Subscription: $347.16 million versus $372.62 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.
Gross Profit- Consulting: $-2.89 million versus $-2.53 million estimated by two analysts on average.
Gross Profit- Subscription: $292.4 million compared to the $317.95 million average estimate based on two analysts.
Shares of Pegasystems have returned +0.2% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
View the Zacks #1 Rank List
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Here's What Key Metrics Tell Us About Pegasystems (PEGA) Q3 Earnings
For the quarter ended September 2026, Pegasystems (PEGA - Free Report) reported revenue of $393.36 million, up 3.2% over the same period last year. EPS came in at $0.35, compared to $0.30 in the year-ago quarter.
The reported revenue represents a surprise of -8.31% over the Zacks Consensus Estimate of $429.02 million. With the consensus EPS estimate being $0.45, the EPS surprise was -22.22%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Pegasystems performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:View all Key Company Metrics for Pegasystems here>>>
Shares of Pegasystems have returned +0.2% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.