Pegasystems to replace Nordstrom in S&P 400 at open on 5/22
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2025
0mins
Acquisition Announcement: The Nordstrom family and El Puerto de Liverpool S.A.B. de C.V. are set to acquire Nordstrom.
Completion Date: The deal is expected to be finalized by May 20.
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Analyst Views on PEGA
Wall Street analysts forecast PEGA stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 34.370
Low
67.00
Averages
76.00
High
85.00
Current: 34.370
Low
67.00
Averages
76.00
High
85.00
About PEGA
Pegasystems Inc. is an enterprise transformation company that helps organizations Build for Change with enterprise artificial intelligence (AI) decisioning and workflow automation. It develops, markets, licenses, hosts and supports enterprise software that helps organizations make decisions and processes in real-time. Its platform for enterprise AI decisioning and workflow automation enables clients to personalize customer experiences, automate customer service, and streamline operations, business processes, and workflows. Its Pega Infinity is a software portfolio. Its applications and platform intersect with and encompass several software markets, including Customer Relationship Management, Digital Process Automation, Low-code application development platforms, Robotic Process Automation, Business Rules Management Systems, and Decision Management. Pega Platform, software for AI-powered workflow automation, boosts the efficiency of its clients’ processes and operational workflow.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pega Named a Leader in Gartner's Process Intelligence Magic Quadrant
- Industry Leadership: Pega has been recognized as a Leader in the Process Intelligence sector by Gartner, evaluated among 13 vendors, showcasing its excellence in product strategy, innovation, and customer experience, thereby solidifying its market leadership.
- AI-Driven Transformation: The AI-driven infrastructure of Pega Infinity™ and Pega Platform enables enterprises to optimize workflows and automate processes through process mining and task mining tools, enhancing operational efficiency and decision-making capabilities.
- Increased Market Recognition: In addition to process intelligence, Pega has also been recognized as a Leader in business orchestration and automation technology, real-time interaction management, and digital process automation by Gartner and Forrester, demonstrating its comprehensive market competitiveness.
- Driving Enterprise Intelligence: Pega's Chief Product Officer emphasized that leveraging AI insights to understand workflows and drive change is crucial for modern enterprise success, and this recognition further validates Pega's strengths in intelligent workflows and transparency.
See More
Pegasystems Reports Weaker-Than-Expected Q1 Earnings
- Performance Decline: Pegasystems reported Q1 adjusted earnings per share of $0.46 on revenue of $429.97 million, both falling short of analyst expectations of $0.69 and $467.16 million, indicating significant performance pressure on the company.
- Sales Drop: The company's sales decreased nearly 10% year-over-year, with adjusted net income per share down 39% compared to the prior year, reflecting weakened market demand and intensified competition.
- Renewal Outlook: Despite the disappointing Q1 results, management indicated that contract renewals could be stronger in the second half of the year, suggesting potential for performance improvement but also increasing pressure for the latter half of the year.
- Stock Pullback: Following the latest earnings report, Pegasystems' stock fell 14.4% this week, and it is now down 37.5% year-to-date in 2026, highlighting investor concerns regarding the company's future performance.
See More
Pegasystems Reports Q1 Earnings Miss, Stock Falls 14.4%
- Earnings Miss: Pegasystems reported Q1 adjusted earnings per share of $0.46 on revenue of $429.97 million, falling short of Wall Street's expectations of $0.69 and $467.16 million, indicating increased competitive pressure in the low-code software market.
- Significant Stock Decline: Despite a 0.5% gain in the S&P 500 and a 1.5% rise in the Nasdaq, Pegasystems' stock fell 14.4% this week, reflecting investor concerns about the company's growth prospects, leading to a cumulative decline of 37.5% in 2026.
- Sales Decrease: The company's Q1 sales dropped nearly 10% year-over-year, with adjusted net income per share down 39% compared to the prior year, suggesting underperformance that could impact future market share.
- Uncertain Outlook: While management indicated that contract renewals are weighted towards the second half of the year, the weak Q1 performance introduces uncertainty and creates pressure for improvement in the latter half of the year, potentially affecting investor confidence.
See More
Pegasystems Shares Drop 6% After Disappointing Q1 2026 Results
- Disappointing Earnings: Pegasystems reported non-GAAP earnings of 46 cents per share for Q1 2026, significantly below the 68 cents expected by analysts, resulting in a 6% drop in stock price, indicating market concerns over profitability.
- Revenue Decline: The company generated $430 million in revenue, a 9.6% year-over-year decline that not only missed analyst forecasts but also highlights competitive pressures that could undermine future investor confidence.
- Narrowing Gross Margin: Pegasystems experienced a contraction in gross margin alongside a 16.2% increase in operating expenses, suggesting challenges in cost management that may impact long-term profitability and market positioning.
- Analyst Price Target Cut: Analysts at Rosenblatt lowered their price target for Pegasystems from $62 to $58, reflecting a cautious outlook on the company's future performance, which may further erode investor confidence in the stock.
See More
Pegasystems Q1 2026 Earnings Call Insights
- Cloud Revenue Growth: In Q1 2026, Pega Cloud revenue surged 36% year-over-year from $151 million to $205 million, indicating strong performance in cloud services that is expected to drive overall business growth.
- Free Cash Flow Performance: The company reported free cash flow of $207 million in Q1, with over 80% allocated to repurchasing 3.5 million shares and paying $5 million in quarterly dividends, reflecting a strong commitment to shareholder returns and financial health.
- Annual Outlook: Management anticipates a significant increase in business activity in the second half of 2026, particularly as the new pipeline converts, with a goal of achieving over 75% of total ACV from Pega Cloud in the long term.
- Market Risk Concerns: The management highlighted pressures from government shutdowns and geopolitical tensions on the business environment; nevertheless, Pega remains optimistic about cloud service growth, emphasizing resilience in uncertain markets.
See More
Pegasystems Q1 Earnings Miss Expectations
- Disappointing Earnings: Pegasystems reported a Q1 non-GAAP EPS of $0.46, missing expectations by $0.23, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company generated $429.97 million in revenue for Q1, a 9.6% year-over-year decrease, falling short of market expectations by $37.19 million, reflecting challenges in competitive positioning.
- Future Growth Targets: Despite the current underperformance, Pegasystems aims for a 15% growth in ACV and revenue in 2026, planning to accelerate Pega Cloud adoption to achieve this, demonstrating confidence in future prospects.
- Market Reaction: Given the earnings miss, investors may react negatively to Pegasystems' stock price, potentially impacting its market position in the technology and cloud computing sectors.
See More
Pega Named a Leader in Gartner's Process Intelligence Magic Quadrant
- Industry Leadership: Pega has been recognized as a Leader in the Process Intelligence sector by Gartner, evaluated among 13 vendors, showcasing its excellence in product strategy, innovation, and customer experience, thereby solidifying its market leadership.
- AI-Driven Transformation: The AI-driven infrastructure of Pega Infinity™ and Pega Platform enables enterprises to optimize workflows and automate processes through process mining and task mining tools, enhancing operational efficiency and decision-making capabilities.
- Increased Market Recognition: In addition to process intelligence, Pega has also been recognized as a Leader in business orchestration and automation technology, real-time interaction management, and digital process automation by Gartner and Forrester, demonstrating its comprehensive market competitiveness.
- Driving Enterprise Intelligence: Pega's Chief Product Officer emphasized that leveraging AI insights to understand workflows and drive change is crucial for modern enterprise success, and this recognition further validates Pega's strengths in intelligent workflows and transparency.
See More
Pegasystems Reports Weaker-Than-Expected Q1 Earnings
- Performance Decline: Pegasystems reported Q1 adjusted earnings per share of $0.46 on revenue of $429.97 million, both falling short of analyst expectations of $0.69 and $467.16 million, indicating significant performance pressure on the company.
- Sales Drop: The company's sales decreased nearly 10% year-over-year, with adjusted net income per share down 39% compared to the prior year, reflecting weakened market demand and intensified competition.
- Renewal Outlook: Despite the disappointing Q1 results, management indicated that contract renewals could be stronger in the second half of the year, suggesting potential for performance improvement but also increasing pressure for the latter half of the year.
- Stock Pullback: Following the latest earnings report, Pegasystems' stock fell 14.4% this week, and it is now down 37.5% year-to-date in 2026, highlighting investor concerns regarding the company's future performance.
See More
Pegasystems Reports Q1 Earnings Miss, Stock Falls 14.4%
- Earnings Miss: Pegasystems reported Q1 adjusted earnings per share of $0.46 on revenue of $429.97 million, falling short of Wall Street's expectations of $0.69 and $467.16 million, indicating increased competitive pressure in the low-code software market.
- Significant Stock Decline: Despite a 0.5% gain in the S&P 500 and a 1.5% rise in the Nasdaq, Pegasystems' stock fell 14.4% this week, reflecting investor concerns about the company's growth prospects, leading to a cumulative decline of 37.5% in 2026.
- Sales Decrease: The company's Q1 sales dropped nearly 10% year-over-year, with adjusted net income per share down 39% compared to the prior year, suggesting underperformance that could impact future market share.
- Uncertain Outlook: While management indicated that contract renewals are weighted towards the second half of the year, the weak Q1 performance introduces uncertainty and creates pressure for improvement in the latter half of the year, potentially affecting investor confidence.
See More
Pegasystems Shares Drop 6% After Disappointing Q1 2026 Results
- Disappointing Earnings: Pegasystems reported non-GAAP earnings of 46 cents per share for Q1 2026, significantly below the 68 cents expected by analysts, resulting in a 6% drop in stock price, indicating market concerns over profitability.
- Revenue Decline: The company generated $430 million in revenue, a 9.6% year-over-year decline that not only missed analyst forecasts but also highlights competitive pressures that could undermine future investor confidence.
- Narrowing Gross Margin: Pegasystems experienced a contraction in gross margin alongside a 16.2% increase in operating expenses, suggesting challenges in cost management that may impact long-term profitability and market positioning.
- Analyst Price Target Cut: Analysts at Rosenblatt lowered their price target for Pegasystems from $62 to $58, reflecting a cautious outlook on the company's future performance, which may further erode investor confidence in the stock.
See More
Pegasystems Q1 2026 Earnings Call Insights
- Cloud Revenue Growth: In Q1 2026, Pega Cloud revenue surged 36% year-over-year from $151 million to $205 million, indicating strong performance in cloud services that is expected to drive overall business growth.
- Free Cash Flow Performance: The company reported free cash flow of $207 million in Q1, with over 80% allocated to repurchasing 3.5 million shares and paying $5 million in quarterly dividends, reflecting a strong commitment to shareholder returns and financial health.
- Annual Outlook: Management anticipates a significant increase in business activity in the second half of 2026, particularly as the new pipeline converts, with a goal of achieving over 75% of total ACV from Pega Cloud in the long term.
- Market Risk Concerns: The management highlighted pressures from government shutdowns and geopolitical tensions on the business environment; nevertheless, Pega remains optimistic about cloud service growth, emphasizing resilience in uncertain markets.
See More
Pegasystems Q1 Earnings Miss Expectations
- Disappointing Earnings: Pegasystems reported a Q1 non-GAAP EPS of $0.46, missing expectations by $0.23, indicating pressure on profitability that could undermine investor confidence.
- Revenue Decline: The company generated $429.97 million in revenue for Q1, a 9.6% year-over-year decrease, falling short of market expectations by $37.19 million, reflecting challenges in competitive positioning.
- Future Growth Targets: Despite the current underperformance, Pegasystems aims for a 15% growth in ACV and revenue in 2026, planning to accelerate Pega Cloud adoption to achieve this, demonstrating confidence in future prospects.
- Market Reaction: Given the earnings miss, investors may react negatively to Pegasystems' stock price, potentially impacting its market position in the technology and cloud computing sectors.
See More
