Pegasystems Inc. (PEGA) Stock Falls on Q4 2025 Earnings

Pegasystems Inc. (PEGA) reported fourth-quarter 2025 revenue of $504.3 million, up 2.8% year-over-year and essentially in line with the Street estimate of $504.2 million. Diluted earnings per share came in at $1.27, well above the consensus estimate of $0.75.

Key income-statement highlights:

Gross profit: $400.9 million, up 3.2% year-over-year.

Operating profit: $104.4 million, down 27.0% year-over-year.

Net income attributable to common shareholders: $234.6 million, up 97.0% year-over-year.

Diluted EPS: $1.27, up 88.2% year-over-year.

Balance sheet and cash-flow items:

Cash from operating activities: $158.4 million, up 66.4% year-over-year.

Cash and cash equivalents: $212.4 million, down 37.0% year-over-year.

Total liabilities: $844.5 million, down 28.6% year-over-year.

Capital expenditures (cash outflow): $6.0 million, up 115.7% year-over-year.

Cost of sales: $103.5 million, up 1.1% year-over-year.

Market reaction: shares fell 3.69% since the market close.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

Pegasystems Inc. Insider Trading Activity

Pegasystems Inc. insiders have traded $PEGA stock on the open market 50 times in the past 6 months. Of those trades, 0 have been purchases and 50 have been sales.

Here’s a breakdown of recent trading of $PEGA stock by insiders over the last 6 months:

ALAN TREFLER (C.E.O. & Chairman) has made 0 purchases and 29 sales selling 450,000 shares for an estimated $25,720,948.
KENNETH STILLWELL (COO, CFO) has made 0 purchases and 7 sales selling 48,018 shares for an estimated $2,968,870.
LEON TREFLER (Chief of Clients and Markets) sold 14,865 shares for an estimated $942,441
RIFAT KERIM AKGONUL (Chief Product Officer) has made 0 purchases and 6 sales selling 15,000 shares for an estimated $845,850.
EFSTATHIOS A KOUNINIS (SVP, Chief Accounting Officer) has made 0 purchases and 6 sales selling 11,781 shares for an estimated $755,763.
LARRY WEBER sold 2,636 shares for an estimated $150,199

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Pegasystems Inc. Hedge Fund Activity

We have seen 223 institutional investors add shares of Pegasystems Inc. stock to their portfolio, and 243 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

HOOD RIVER CAPITAL MANAGEMENT LLC added 1,578,448 shares (+inf%) to their portfolio in Q3 2025, for an estimated $90,760,760
CAPITAL RESEARCH GLOBAL INVESTORS removed 1,455,573 shares (-36.6%) from their portfolio in Q3 2025, for an estimated $83,695,447
NORTH PEAK CAPITAL MANAGEMENT, LLC added 1,289,540 shares (+122.0%) to their portfolio in Q3 2025, for an estimated $74,148,550
AMERICAN CENTURY COMPANIES INC added 1,239,998 shares (+357.6%) to their portfolio in Q3 2025, for an estimated $71,299,885
PACER ADVISORS, INC. removed 850,904 shares (-100.0%) from their portfolio in Q4 2025, for an estimated $50,815,986
FIRST TRUST ADVISORS LP added 812,634 shares (+271.7%) to their portfolio in Q3 2025, for an estimated $46,726,455
AQR CAPITAL MANAGEMENT LLC removed 645,751 shares (-16.0%) from their portfolio in Q3 2025, for an estimated $37,130,682

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Pegasystems Inc. Government Contracts

We have seen $931,800 of award payments to $PEGA over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

PEGA SUPPORT FOR DISCONNECTED OPERATIONS (DISCOPS): $931,800

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard.

Pegasystems Inc. Analyst Ratings

Wall Street analysts have issued reports on $PEGA in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

Wedbush issued a "Outperform" rating on 10/23/2025
Rosenblatt issued a "Buy" rating on 10/23/2025
DA Davidson issued a "Buy" rating on 10/22/2025

To track analyst ratings and price targets for Pegasystems Inc., check out Quiver Quantitative's $PEGA forecast page.

Pegasystems Inc. Price Targets

Multiple analysts have issued price targets for $PEGA recently. We have seen 6 analysts offer price targets for $PEGA in the last 6 months, with a median target of $74.5.

Here are some recent targets:

Blair Abernethy from Rosenblatt set a target price of $62.0 on 02/06/2026
Alexei Gogolev from JP Morgan set a target price of $74.0 on 12/05/2025
Rishi Jaluria from RBC Capital set a target price of $80.0 on 10/23/2025
Raimo Lenschow from Barclays set a target price of $67.0 on 10/23/2025
Daniel Ives from Wedbush set a target price of $75.0 on 10/23/2025
Lucky Schreiner from DA Davidson set a target price of $85.0 on 10/22/2025