Equity Profile

PEGA

Pegasystems Inc.

Information TechnologyApplication Software$6.0B

Jul21Tue

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Pegasystems Inc. is a technology company that develops software for customer engagement and digital transformation....

Key Metrics to Watch

Customer Engagement Revenue

This metric reflects how well Pegasystems is attracting and retaining customers, which is crucial for growth.

N/A

Operating Margin

A strong operating margin indicates efficient management and cost control, which are vital for profitability.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

PEGA Q2-2026 Earnings Preview

Context

Company Snapshot

Pegasystems Inc. is a technology company that develops software for customer engagement and digital transformation. Operating in the Information Technology sector, Pegasystems focuses on helping businesses improve their operations through automation and AI-driven solutions, which are increasingly important in today's digital landscape.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+422.30%

Avg Stock Reaction

-0.22%

Last Quarter Recap

In Q1 2026, Pegasystems reported an earnings per share (EPS) of $0.46, which was significantly below the expected $0.65, leading to a 10.3% drop in stock price the following day. The company continues to face challenges in meeting market expectations.

Management Promises & Guidance

Expectations

Wall Street Expectations

Investors are cautious ahead of Pegasystems' upcoming earnings report, especially after the significant EPS miss last quarter. The market is looking for signs of recovery in customer engagement and operational efficiency.

Bull Case

If Pegasystems can demonstrate strong customer acquisition and improved margins, it could signal a turnaround, leading to positive investor sentiment.

Bear Case

Conversely, if the company fails to show progress in key metrics or reports another earnings miss, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the new customer acquisition rate for this quarter?

This figure will be critical in assessing whether Pegasystems is effectively expanding its market presence and reversing recent trends.

How has the operating margin changed compared to last quarter?

Changes in operating margin will indicate how well the company is managing costs and whether it can improve profitability moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Pegasystems' potential for customer acquisition recovery, as recent investments in marketing and product enhancements could yield better results than anticipated.

Supporting Evidence

The options market is pricing a significant move, indicating that investors expect volatility and potential surprises.

Despite the recent miss, Pegasystems has a strong track record of beating EPS estimates, with an 88% beat rate historically.

Key Risk

If new customer acquisition exceeds 20%, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Pegasystems' ability to attract new customers and manage costs effectively.

Bull Confirmed If

Demonstrating a new customer acquisition rate above 15% would confirm the bull case.

Bear Confirmed If

If the operating margin falls below 10%, it would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±15.66%

Historical Avg

±3.5%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±22.7% while PEGA has averaged ±3.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

52.2%

Calls (9K)P/C Ratio: 0.34Puts (2K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

This setup has occurred 29 times across Information Technology in the last 2 years. 20 of 29 (69%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 8.2%, with a raw directional average of +3.5% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Pegasystems beats expectations, history suggests a potential stock increase of around 1.22%, confirming a positive outlook.

In-Line / Cautious

An in-line report with cautious commentary could lead to a muted response, reflecting ongoing investor uncertainty.

Miss

If the company misses again, history suggests a decline of about 10.30%, indicating continued investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new customer acquisition strategies and their effectiveness.
2Details on cost management initiatives and their impact on operating margins.
3Insights into customer engagement metrics and how they compare to previous quarters.
4Management's outlook on market conditions and competitive landscape.
5Any commentary on product innovations and their expected impact on revenue.

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AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Pegasystems Inc. is a technology company that develops software for customer engagement and digital transformation....

Key Metrics to Watch

Customer Engagement Revenue

This metric reflects how well Pegasystems is attracting and retaining customers, which is crucial for growth.

N/A

Operating Margin

A strong operating margin indicates efficient management and cost control, which are vital for profitability.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

PEGA Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

88%

Avg EPS Surprise

+422.30%

Avg Stock Reaction

-0.22%

Last Quarter Recap

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If Pegasystems can demonstrate strong customer acquisition and improved margins, it could signal a turnaround, leading to positive investor sentiment.

Bear Case

Conversely, if the company fails to show progress in key metrics or reports another earnings miss, it could lead to further declines in stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the new customer acquisition rate for this quarter?

This figure will be critical in assessing whether Pegasystems is effectively expanding its market presence and reversing recent trends.

How has the operating margin changed compared to last quarter?

Changes in operating margin will indicate how well the company is managing costs and whether it can improve profitability moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Pegasystems' potential for customer acquisition recovery, as recent investments in marketing and product enhancements could yield better results than anticipated.

Supporting Evidence

The options market is pricing a significant move, indicating that investors expect volatility and potential surprises.

Despite the recent miss, Pegasystems has a strong track record of beating EPS estimates, with an 88% beat rate historically.

Key Risk

If new customer acquisition exceeds 20%, it could significantly shift market sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around Pegasystems' ability to attract new customers and manage costs effectively.

Bull Confirmed If

Demonstrating a new customer acquisition rate above 15% would confirm the bull case.

Bear Confirmed If

If the operating margin falls below 10%, it would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±15.66%

Historical Avg

±3.5%

Pricing rich

The options market is pricing in a significant move, suggesting that investors expect volatility around the earnings report.

Options are pricing ±22.7% while PEGA has averaged ±3.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

52.2%

Calls (9K)P/C Ratio: 0.34Puts (2K)

Edge

Historical Setup Match

Cross-company pattern from 29 similar setups.

Prior-quarter miss + options pricing rich in Information Technology

n=29

Fade rate: 9 of 29 (31%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Pegasystems beats expectations, history suggests a potential stock increase of around 1.22%, confirming a positive outlook.

In-Line / Cautious

An in-line report with cautious commentary could lead to a muted response, reflecting ongoing investor uncertainty.

Miss

If the company misses again, history suggests a decline of about 10.30%, indicating continued investor disappointment.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on new customer acquisition strategies and their effectiveness.
2Details on cost management initiatives and their impact on operating margins.
3Insights into customer engagement metrics and how they compare to previous quarters.
4Management's outlook on market conditions and competitive landscape.
5Any commentary on product innovations and their expected impact on revenue.