Pegasystems (NASDAQ:PEGA) Sets New 12-Month Low After Earnings Miss

Pegasystems Inc. (NASDAQ:PEGA) shares reached a new 52-week low during mid-day trading on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $25.11 and last traded at $25.5130, with a volume of 442845 shares. The stock had previously closed at $30.94.

The technology company reported $0.35 EPS for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.08). Pegasystems had a net margin of 18.66% and a return on equity of 30.63%. The firm had revenue of $420.72 million during the quarter, compared to analysts’ expectations of $427.38 million. During the same quarter last year, the firm earned $0.28 EPS. The business’s revenue for the quarter was up 9.4% compared to the same quarter last year.

Pegasystems Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were issued a dividend of $0.03 per share. This represents a $0.12 annualized dividend and a dividend yield of 0.5%. The ex-dividend date was Wednesday, July 1st. Pegasystems’s payout ratio is currently 6.45%.

More Pegasystems News

Here are the key news stories impacting Pegasystems this week:

• Positive Sentiment: Management highlighted strong cloud momentum and said Pega Infinity 26 is designed to help customers deploy AI with more predictable costs and outcomes, which could support longer-term adoption. Pega Drives Cash Flow and Releases AI Innovation in Q2 2026
• Positive Sentiment: Several analysts reiterated bullish views after the selloff, arguing that near-term weakness may be temporary and that the pullback could create a more attractive entry point. Analyst Maintains Buy on Pegasystems
• Neutral Sentiment: Analysts noted that Pegasystems is navigating an AI-driven shift in enterprise spending, with customers delaying decisions as they reassess software purchases in a rapidly changing market. Pegasystems’ Q2 echoes IBM as AI alters enterprise spending plans: analysts
• Negative Sentiment: Q2 results missed expectations on both revenue and adjusted EPS, with the company reporting $0.35 EPS versus $0.43 expected and revenue of $420.7 million versus $427.4 million expected. Pegasystems Q2 Earnings Miss Estimates, Revenues Increase Y/Y
• Negative Sentiment: Investors were especially worried by management’s comments that AI-related uncertainty is delaying customer buying decisions and slowing ACV growth, which could pressure bookings and cash generation later this year. Pegasystems outlines $700M+ 2028 free cash flow target while highlighting no per token costs for ai agents

Analysts Set New Price Targets

Several equities analysts recently weighed in on PEGA shares. DA Davidson reaffirmed a “buy” rating and set a $55.00 price objective on shares of Pegasystems in a research report on Wednesday, June 10th. Weiss Ratings downgraded shares of Pegasystems from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 4th. Loop Capital lowered shares of Pegasystems from a “buy” rating to a “hold” rating and set a $25.00 price target on the stock. in a research note on Thursday. KeyCorp downgraded shares of Pegasystems to a “sector weight” rating in a report on Wednesday. Finally, Royal Bank Of Canada restated an “outperform” rating on shares of Pegasystems in a report on Tuesday, June 9th. Five equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $58.80.

Insider Buying and Selling

In other Pegasystems news, insider Rifat Kerim Akgonul sold 4,545 shares of the stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $33.35, for a total transaction of $151,575.75. Following the transaction, the insider owned 107,070 shares in the company, valued at $3,570,784.50. This trade represents a 4.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Efstathios A. Kouninis sold 750 shares of Pegasystems stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $34.75, for a total transaction of $26,062.50. Following the completion of the transaction, the chief accounting officer directly owned 2,894 shares in the company, valued at approximately $100,566.50. This represents a 20.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 6,795 shares of company stock worth $229,613 over the last three months. 48.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PEGA. NewEdge Advisors LLC lifted its holdings in shares of Pegasystems by 1.4% during the 3rd quarter. NewEdge Advisors LLC now owns 13,652 shares of the technology company’s stock worth $785,000 after acquiring an additional 189 shares during the period. Amundi increased its stake in Pegasystems by 0.6% in the fourth quarter. Amundi now owns 39,881 shares of the technology company’s stock valued at $2,382,000 after acquiring an additional 249 shares during the period. PNC Financial Services Group Inc. increased its stake in Pegasystems by 3.4% in the fourth quarter. PNC Financial Services Group Inc. now owns 8,378 shares of the technology company’s stock valued at $500,000 after acquiring an additional 272 shares during the period. State of Michigan Retirement System raised its position in Pegasystems by 1.4% in the first quarter. State of Michigan Retirement System now owns 22,000 shares of the technology company’s stock worth $936,000 after purchasing an additional 300 shares in the last quarter. Finally, Fifth Third Bancorp raised its position in Pegasystems by 96.5% in the fourth quarter. Fifth Third Bancorp now owns 617 shares of the technology company’s stock worth $37,000 after purchasing an additional 303 shares in the last quarter. 46.89% of the stock is currently owned by institutional investors and hedge funds.

Pegasystems Price Performance

The stock has a market cap of $4.34 billion, a P/E ratio of 14.68 and a beta of 0.87. The business’s 50 day simple moving average is $32.42 and its 200 day simple moving average is $40.00.

Pegasystems Company Profile

Pegasystems Inc is a software company specializing in customer engagement and digital process automation solutions. Headquartered in Cambridge, Massachusetts, Pegasystems develops enterprise applications designed to help organizations streamline operations, manage customer interactions and automate complex workflows. Its platform supports a wide range of use cases, from sales and marketing optimization to case management and robotic process automation.

The core of Pegasystems’ offering is the Pega Platform, a low-code development environment that enables businesses to build and deploy applications with minimal hand-coding.