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๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ
โข Adj. EPS: $0.35 (Est. $0.46) โ, +17% YoY.
โข Revenue: $393.36M (Est. $421.06M) โ, +3% YoY.
โข GAAP EPS: $0.08 (vs. $0.24 YoY).
โข GAAP Net Income: $14.09M, -68% YoY.
โข Adj. Net Income: $59.75M, +8% YoY.
โข Pega Cloud Revenue: $218.93M, +19% YoY.
โข Subscription Revenue: $347.16M, +7% YoY.
โข Consulting Revenue: $46.20M, -18% YoY.
โข Total ACV: $1.65B, +6% YoY (+7% constant currency).
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๐ฏ ๐๐ฎ๐ข๐๐๐ง๐๐
โข FY2028 Free Cash Flow Target: At least $700M, maintained.
โข Management warned that slower ACV growth and cash flow pressures may persist through the remainder of 2026.
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๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข Q3 Adj. EPS missed consensus by ~23.9%, while revenue fell ~6.6% short of estimates.
โข Pega Cloud ACV grew 20% YoY and now represents 59% of total ACV, reflecting continued cloud adoption.
โข Total ACV increased just 6% YoY to $1.65B, with management citing go-to-market execution challenges and greater customer scrutiny of technology spending amid AI disruption.
โข Q3 ACV additions were the strongest of 2026, despite slower overall growth through the first nine months.
โข Pega Cloud revenue increased 19% to $218.9M, while subscription license revenue declined 9% and consulting revenue fell 18%.
โข Year-to-date Adj. EPS declined 13% to $1.17, while GAAP net income fell 62% to $60.2M.
โข Management is taking actions to improve execution and accelerate growth while maintaining its FY2028 free cash flow target.
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๐ฌ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐๐ซ๐ฒ
โWhile 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.โ