Pegasystems Inc. (PEGA)

Pegasystems' stock price has experienced a significant decline over the past six months, decreasing by 26.92%. The stock was down approximately 35.56% in the month leading up to February 7, 2026, and 29.58% over the last 12 months. In October 2025, Pegasystems announced its Q3 2025 financial results, reporting a 14% year-over-year growth in Annual Contract Value (ACV) and a 27% year-over-year increase in Pega Cloud ACV, and the company also repurchased 8.7 million shares for $393 million year-to-date. In December 2025, a cautious analysis by investment researchers highlighted concerns about slowing growth momentum, projecting sales growth of only 4.2% for the upcoming year, which led to a nearly 2% drop in shares. In January 2026, the company launched Notes to Blueprint, a new AI tool designed to accelerate the transformation of legacy Lotus Notes applications. In February 2026, Pegasystems is scheduled to report its financial results for the fourth quarter and fiscal year 2025, and despite recent weakness, the stock saw a modest gain of 0.73% as some valuation analyses suggested it might be undervalued.

While specific seasonal patterns for Pegasystems' demand are not explicitly detailed, the company's focus on large B2B enterprises in highly regulated industries suggests a demand driven by ongoing operational needs and digital transformation initiatives rather than typical consumer seasonality. Demand for Pegasystems' products is noted to vary among clients, particularly in telecommunications and other highly-regulated industries requiring robust and auditable workflow automation. The company's Q3 2025 report indicated strong customer demand, with total Annual Contract Value (ACV) growing 14% year-over-year and Pega Cloud ACV increasing by 27%. Billings also showed solid growth, averaging 17% year-on-year increases over the last four quarters. The 2024 launch of Pega GenAI Blueprint expanded its target market beyond IT departments, responding to a surging demand for user-friendly, AI-infused automation tools among non-technical decision-makers globally. However, analysts anticipate a deceleration in revenue growth to 2.7% over the next 12 months, implying some potential demand headwinds.

Pegasystems, Inc. (PEGA) is a global software company specializing in enterprise software for workflow automation, customer engagement, and AI-powered decision-making. Founded in 1983 and headquartered in Waltham, Massachusetts, the company operates within the Technology sector, specifically in the Information Technology Services industry. Pegasystems' flagship offering is the Pega Infinity platform, which integrates business process management with customer relationship management applications. Key products and solutions include the Pega Platform, Pega GenAI solutions, Pega Blueprint, Pega Client Lifecycle Management (CLM), Pega Sales Automation, and Pega Customer Service. The company also provides various industry-specific applications for sectors such as financial services, healthcare, insurance, government, and communications.

Pegasystems maintains a robust global presence with 40 office locations across the Americas, Europe, and Asia. North America represents the largest market for Pegasystems, contributing approximately 50% of its total annual revenue, with a strong focus on Fortune 500 companies in financial services and telecommunications. Europe is the second-largest market, accounting for around 30% of revenue, particularly strong in the United Kingdom, Germany, and the Benelux countries within the banking and insurance industries. The Asia-Pacific region is identified as a strategic growth engine, with significant demand in Australia, Japan, and Singapore. The company also cultivates a presence in emerging markets like Latin America and the Middle East through partner channels.

Pegasystems has maintained a strong brand reputation over the past year, marked by several positive recognitions and product advancements. In Q1 2025, Pega was named a Leader in the Forrester Wave™: Customer Relationship Management Software. In 2025, the company strengthened its public sector positioning by achieving FedRAMP High certification. In October 2025, Gartner recognized Pega as a Leader in its Magic Quadrant for Business Orchestration and Automation Technology and in Gartner's Magic Quadrant for Enterprise Low-Code Application Platforms. In December 2025, Pega launched an advanced agentic AI compliance solution with enhanced Pega Client Lifecycle Management (CLM), and CRN highlighted Pega's AI innovation and AWS partnership as its total contract value reached $1.56 billion. In January 2026, the company launched Notes to Blueprint, an AI tool designed to help organizations transform outdated Lotus Notes applications. In February 2026, Pegasystems achieved ISO/IEC 42001:2023 certification for Pega Cloud services, Pega GenAI solutions, and predictive and adaptive analytics, demonstrating its commitment to AI governance and trust standards.

Pegasystems Inc. has a significant institutional ownership, with 833 institutional owners holding a total of 117,429,842 shares, representing approximately 57.75% of total shares outstanding. Major institutional shareholders include Vanguard Group Inc, BlackRock, Inc., Massachusetts Financial Services Co /ma/, SMCWX - SMALLCAP WORLD FUND INC Class A, Aqr Capital Management Llc, Bares Capital Management, Inc., VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, IJH - iShares Core S&P Mid-Cap ETF, State Street Corp, and Invesco Ltd. Among individual investors, founder and CEO Alan Trefler holds the most shares.