Pegasystems

PEGA · NASDAQ

$36.23+$1.19 (+3.40%)TodayMarket closed · Oct 20, 4:05 PM ET

Prev close $35.04

PEGA analyst rating

BuyConsensus of 12 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy6
Hold6
Underperform0
Sell0

12-month price target · 13 analysts

Average $44.23 (+22.1% upside)

Low: $25.25
Now: $36.23
High: $63.00

Upgrades and downgrades

The latest rating actions, newest first

PEGA analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Rosenblatt	Oct 15, 2026	Maintains	Buy	$47.00	61%
Citigroup	Oct 13, 2026	Maintains	Buy	$55.00 → $52.00	52%
Barclays	Oct 13, 2026	Maintains	Overweight	$39.00 → $43.00	56%
DA Davidson	Sep 28, 2026	Downgrade	Buy → Neutral	$32.00	43%
JP Morgan	Sep 17, 2026	Downgrade	Overweight → Neutral	$54.00 → $47.00	63%
DA Davidson	Jul 24, 2026	Maintains	Buy	$55.00 → $32.00	43%
RBC Capital	Jul 23, 2026	Maintains	Outperform	$60.00 → $35.00	51%
Barclays	Jul 23, 2026	Maintains	Overweight	$48.00 → $39.00	56%
William Blair	Jul 23, 2026	Downgrade	Outperform → Market Perform	—	40%
Rosenblatt	Jul 23, 2026	Maintains	Buy	$58.00 → $47.00	61%

The case for and against

Updated Oct 14, 2026

Bull case

Pegasystems is well positioned because its cloud transition has made revenue more predictable, with subscription revenue now representing 85%+ of total revenue and cloud accounting for 50%+ of ACV, supporting a stronger long-term business model. Its competitive edge in DPA and CRM, especially for large enterprise customers in financial services, insurance, and healthcare, is reinforced by high transparency into ACV and RPO and by the company’s ability to win on flexible deployment, single-tenant architecture, and back-office integration. Despite 2Q26 softness from delayed buying decisions, the company still generated $81.7M of FCF above consensus, maintained healthy TTM FCF, and continued opportunistic share repurchases, which underscores financial resilience and confidence in the franchise.

Bear case

Pegasystems is facing a weakening fundamental setup as unprecedented AI-related buyer uncertainty and token-spend confusion are delaying purchasing decisions, pushing deals out of the quarter and slowing ACV growth to 8% Y/Y in CC versus a TTM average of about $19M in net new ACV. Total ACV of $1,620M missed expectations, cloud ACV growth slowed to about 22% Y/Y, and RPO trends also decelerated, signaling that near-term demand softness is not just a one-off but a broader pipeline digestion issue. Management also flagged GTM execution shortfalls, while international exposure above 40% and intense competition from newer AI-enabled platforms add pressure to revenue consistency and margin durability.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.