Pegasystems Inc. (PEGA)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Pegasystems Inc. (PEGA) trades at $31.36 with AI Score 89/100 (Grade A+). Pegasystems Inc. provides enterprise software applications, unifying customer engagement and digital process automation through its Pega Infinity platform. Market cap: $5.24B, Sector: Technology.
Price live · AI analysis from May 10, 2026PEGA stock analysis for 2026: Analysts have set a consensus price target of $58.25 for Pegasystems Inc., suggesting 85.7% upside from the current price of $31.36. The AI MoonshotScore is 89/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
PEGA: 4/7 perspectives are bullish. Dominant signal: Moon AI bullish.
How is this calculated? →Pegasystems Inc. (PEGA) Technology Profile & Competitive Position
Pegasystems Inc. (PEGA) delivers enterprise software solutions, specializing in customer engagement and digital process automation via its Pega Infinity platform. Targeting sectors like financial services and healthcare, PEGA competes with companies offering similar automation and CRM capabilities, leveraging a direct sales force and strategic partnerships.
What Is the Investment Thesis for PEGA?
Pegasystems Inc. presents a compelling investment thesis centered on its Pega Infinity platform, which unifies customer engagement and digital process automation. With a P/E ratio of 14.2 and a profit margin of 20.0%, the company demonstrates strong profitability. Growth catalysts include the increasing demand for digital transformation solutions and the expansion of Pega Cloud. The company's focus on key sectors like financial services and healthcare provides a stable revenue base. However, potential risks include competition from larger software vendors and the need to continually innovate to maintain its competitive edge. The dividend yield of 0.33% offers a modest return to investors. The company's beta of 1.10 indicates slightly higher volatility compared to the market.
Based on FMP financials and quantitative analysis
PEGA Key Highlights
- Market Cap of $5.24B reflects investor confidence in Pegasystems' market position.
- P/E Ratio of 14.2 indicates a potentially undervalued stock compared to industry peers.
- Profit Margin of 20.0% demonstrates strong operational efficiency and profitability.
- Gross Margin of 75.0% highlights the company's ability to maintain high profitability on its products and services.
- Dividend Yield of 0.33% provides a modest income stream for investors.
Who Are PEGA's Competitors?
PEGA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AKAM Akamai Technologies, Inc. | $113.10 | -0.06% | $16.44B | 60 |
| QXO QXO, Inc. | $15.85 | -2.25% | $11.49B | — |
| DAY Dayforce Inc | $69.86 | +1.36% | $11.18B | 52 |
| MANH Manhattan Associates, Inc. | $153.81 | +1.83% | $9.10B | 87 |
| PAYC Paycom Software, Inc. | $138.96 | -0.18% | $7.58B | 71 |
| NOW ServiceNow, Inc. | $108.69 | +2.23% | $112.09B | 71 |
| RSASF RESAAS Services Inc. | $0.30 | +2.76% | $25.04M | 69 |
| CSAI Cloudastructure Inc. | $0.36 | +0.47% | $6.84M | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are PEGA's Key Strengths?
- Comprehensive Pega Infinity platform.
- Strong customer relationships.
- Expertise in AI and automation.
- Diverse industry coverage.
What Are PEGA's Weaknesses?
- Reliance on direct sales force.
- Complex software implementation.
- Competition from larger software vendors.
- Potential for high customer churn.
What Could Drive PEGA Stock Higher?
- Continued adoption of Pega Cloud driving recurring revenue.
- Integration of AI and machine learning into Pega Infinity platform enhancing automation capabilities.
- New product releases and platform updates enhancing functionality and attracting new customers.
- Strategic partnerships expanding market reach and penetration.
What Are the Key Risks for PEGA?
- Increasing competition from larger software vendors.
- Rapid technological changes requiring continuous innovation.
- Economic downturns impacting customer spending.
- Cybersecurity threats compromising data security.
- Complexity of software implementation leading to customer dissatisfaction.
What Are the Growth Opportunities for PEGA?
- Expansion of Pega Cloud: Pegasystems can drive growth by expanding its Pega Cloud offerings, targeting organizations seeking cloud-based solutions for application development and deployment. The global cloud computing market is projected to reach $832.1 billion by 2025, presenting a significant opportunity for Pegasystems to increase its market share. Timeline: Ongoing.
- AI-Powered Automation: Integrating advanced AI capabilities into the Pega Infinity platform can enhance its automation capabilities and attract customers seeking intelligent automation solutions. The AI market is expected to reach $190.6 billion by 2025, driven by the increasing adoption of AI across various industries. Timeline: Ongoing.
- Strategic Partnerships: Forming strategic partnerships with technology providers and application developers can expand Pegasystems' reach and market penetration. Collaborations can provide access to new markets and customer segments, driving revenue growth. Timeline: Ongoing.
- Focus on Key Verticals: Targeting specific industries like financial services, healthcare, and government can enable Pegasystems to tailor its solutions and capture a larger share of these markets. These sectors are increasingly investing in digital transformation initiatives, creating opportunities for Pegasystems to provide specialized solutions. Timeline: Ongoing.
- Global Expansion: Expanding its presence in international markets, particularly in the Asia-Pacific region, can drive growth for Pegasystems. The increasing adoption of digital technologies in emerging markets presents opportunities for the company to expand its customer base and revenue streams. Timeline: Ongoing.
What Opportunities Does PEGA Have?
- Expansion of Pega Cloud.
- Integration of advanced AI capabilities.
- Strategic partnerships.
- Global expansion.
What Threats Does PEGA Face?
- Rapid technological changes.
- Increasing competition.
- Economic downturns.
- Cybersecurity threats.
What Are PEGA's Competitive Advantages?
- Proprietary Pega Infinity platform provides a differentiated solution for customer engagement and digital process automation.
- Strong relationships with key customers in various industries.
- Expertise in AI and automation technologies.
- Comprehensive suite of software applications and services.
What Does PEGA Do?
Founded in 1983 and headquartered in Cambridge, Massachusetts, Pegasystems Inc. (PEGA) has evolved into a prominent provider of enterprise software solutions. The company's core offering is the Pega Infinity platform, which unifies customer engagement and digital process automation. This platform enables businesses to streamline operations, enhance customer experiences, and drive efficiency across various departments. Pegasystems serves a diverse range of industries, including financial services, life sciences, healthcare, communications and media, government, insurance, manufacturing, high tech, and consumer services. Its software applications include Pega Customer Decision Hub, Pega Sales Automation, and Pega Customer Service, each designed to address specific business needs. Pega Cloud allows clients to develop, test, and deploy applications. The company markets its products and services through a direct sales force and partnerships with technology providers and application developers, extending its reach across the United States, the Americas, Europe, the Middle East, Africa, and the Asia-Pacific region. Pegasystems aims to empower organizations with the tools to adapt and thrive in a rapidly changing business landscape.
What Products and Services Does PEGA Offer?
- Develops and markets enterprise software applications.
- Provides the Pega Infinity platform for customer engagement and digital process automation.
- Offers customer engagement applications like Pega Customer Decision Hub and Pega Customer Service.
- Provides intelligent automation software.
- Offers Pega Cloud for application development and deployment.
- Provides training through Pega Academy.
- Offers guidance, implementation, and technical support services.
How Does PEGA Make Money?
- Licenses software applications to enterprises.
- Provides cloud-based services through Pega Cloud.
- Offers training and support services.
- Generates revenue through subscription models and recurring revenue streams.
What Industry Does PEGA Operate In?
Pegasystems Inc. operates in the competitive application software industry, which is characterized by rapid innovation and evolving customer needs. The market is driven by the increasing demand for digital transformation and automation solutions. Pegasystems competes with companies like Akamai Technologies, Inc. and Dayforce Inc, each offering various software solutions. The industry is experiencing growth, with companies investing in cloud-based platforms and AI-powered applications. Pegasystems' focus on customer engagement and digital process automation positions it to capitalize on these trends, addressing the needs of organizations seeking to enhance efficiency and customer experience.
Who Are PEGA's Key Customers?
- Financial services companies.
- Life sciences and healthcare organizations.
- Communications and media companies.
- Government agencies.
- Insurance companies.
- Manufacturing and high-tech companies.
- Consumer services companies.
How Pegasystems Inc. Is Valued
Pegasystems Inc. carries a market capitalization of $5.24B, placing it in the mid-cap category. Relative to its peer group, PEGA's quantitative score of 89/100 is above the peer average of 68/100.
Company Profile
Pegasystems Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Waltham, US. The company is led by CEO Alan Trefler. PEGA has traded publicly since 1996.
ROE 50%Key Financial Metrics
Return on equity for Pegasystems Inc. stands at 50.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 22.0%, showing how much profit it generates from its asset base. PEGA trades at a trailing price-to-earnings ratio of 14.23, below the Technology sector average of ~38x. Its free cash flow yield is 10.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.22 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 7.0%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
Pegasystems Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 5.76 places it in the safe zone, indicating low near-term bankruptcy risk.
FY2026 estForward Outlook
Wall Street analysts project Pegasystems Inc. revenue of about $1.98B for fiscal 2026, with EPS near $2.72. The estimate reflects 8 contributing analysts.
Net sellingInsider Activity
Over the past six months, Pegasystems Inc. insiders filed 30 SEC Form 4 transactions — 20 sales and 10 purchases. On net that is roughly 4K shares disposed (about $299K), a signal worth weighing alongside the fundamentals.
PEGA Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Pegasystems' future, indicating that leadership believes in the company's potential.
- Community sentiment has shifted positively with discussions around innovative product launches gaining traction.
- Analysts have noted an increase in demand for digital transformation solutions, aligning with Pegasystems' offerings.
- The company's strong reputation in customer engagement platforms is resonating well in current market discussions.
Bear Case
- Concerns about competitive pressures in the software industry have been voiced, with some community members highlighting aggressive rivals.
- Recent earnings reports have shown mixed results, leading to skepticism about future growth prospects among investors.
- Market sentiment has been tempered by broader economic uncertainties, causing some traders to adopt a cautious stance on tech stocks.
- Discussions around potential regulatory challenges in the software sector have raised red flags for some in the trading community.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
PEGA Latest News
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PEGA: What does Argus have to say about PEGA?
Argus Research · Jul 1, 2026
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Adobe vs. Pegasystems: Which AI Software Stock Is the Better Buy?
zacks.com · Jun 29, 2026
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Microsoft (MSFT) Moves 5.7% Higher: Will This Strength Last?
Yahoo! Finance: PEGA News · Jun 29, 2026
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Pegasystems: As The AI Era Grows, So Could This Software Stock With It
seekingalpha.com · Jun 27, 2026
PEGA Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for PEGA.
Price Targets
Consensus target: $58.25
PEGA MoonshotScore
What does this score mean?
The MoonshotScore rates PEGA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
PEGA: What does Argus have to say about PEGA?
Adobe vs. Pegasystems: Which AI Software Stock Is the Better Buy?
Microsoft (MSFT) Moves 5.7% Higher: Will This Strength Last?
Pegasystems: As The AI Era Grows, So Could This Software Stock With It
Latest Pegasystems Inc. Analysis
Leadership: Alan Trefler
CEO
Alan Trefler is the founder and CEO of Pegasystems. He founded the company in 1983. Trefler graduated summa cum laude from Dartmouth College with a degree in computer science. He is a renowned expert in business process management and customer relationship management. Trefler's leadership has been instrumental in driving Pegasystems' growth and innovation over the years. He is also an accomplished chess master.
Track Record: Under Alan Trefler's leadership, Pegasystems has grown into a leading provider of enterprise software solutions. He has overseen the development of the Pega Infinity platform and the expansion of the company's global presence. Trefler has also guided Pegasystems through various technological shifts and market changes, maintaining its competitive edge. He has successfully navigated the company through economic downturns and industry disruptions.
Pegasystems Inc. Technology Stock: Key Questions Answered
What does Pegasystems Inc. do?
Pegasystems Inc. specializes in providing enterprise software solutions designed to unify customer engagement and automate digital processes. Its flagship product, the Pega Infinity platform, enables businesses to streamline operations, enhance customer experiences, and drive efficiency across various departments. The company offers a suite of applications, including Pega Customer Decision Hub, Pega Sales Automation, and Pega Customer Service, catering to industries such as financial services, healthcare, and government. Pegasystems also provides cloud-based services through Pega Cloud, along with training and support to ensure successful implementation and adoption of its solutions.
What do analysts say about PEGA stock?
Analyst consensus on Pegasystems Inc. (PEGA) reflects a generally positive outlook, driven by the company's strong market position and growth potential. Key valuation metrics, such as the P/E ratio of 14.2, suggest that the stock may be undervalued compared to industry peers. Analysts highlight the company's recurring revenue model and expansion of Pega Cloud as key growth drivers. However, they also note potential risks, including competition from larger software vendors and the need to continually innovate to maintain its competitive edge. Overall, analysts view PEGA as a promising investment, but advise investors to carefully consider the risks and opportunities before making a decision.
What are the main risks for PEGA?
Pegasystems Inc. faces several key risks, including increasing competition from larger software vendors with greater resources and market reach. Rapid technological changes in the software industry require continuous innovation and investment to maintain a competitive edge. Economic downturns can impact customer spending and delay or cancel software implementation projects. Cybersecurity threats pose a risk to data security and customer trust. The complexity of software implementation can lead to customer dissatisfaction and potential churn. These risks could negatively impact Pegasystems' financial performance and growth prospects.
What are the key factors to evaluate for PEGA?
Pegasystems Inc. (PEGA) holds an AI score of 89/100 (high). P/E: 14.2x vs the S&P 500's ~20-25x. Analysts target $58.25 (+86%). Not financial advice.
How frequently does PEGA data refresh on this page?
PEGA prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven PEGA's recent stock price performance?
Pegasystems Inc. (PEGA) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Comprehensive Pega Infinity platform. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider PEGA overvalued or undervalued right now?
Pegasystems Inc. (PEGA) trades at 14.2x earnings. Analysts target $58.25 (+86%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying PEGA?
Before investing in Pegasystems Inc. (PEGA), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest available reporting period.