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Pegasystems PEGA

Pegasystems scores good on business quality (7.4 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$35.65Oct 10, 2026
Business qualityGood
Next earningsOct 20, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Pegasystems does

    Pegasystems builds low-code software that automates enterprise workflows and customer engagement, selling directly to large corporations seeking operational efficiency. The company is leaning heavily into cloud-based deployments to accelerate recurring software revenue.

  2. What it does best

    Pegasystems dominates enterprise workflow automation, backed by a gross margin of 75.6% that beats peer RNG at 71.8%. This edge stems from deep integration into core business operations, locking in large clients who face steep switching costs.

  3. The main risk

    Valuation sits slightly above intrinsic value at $33.93 against $31.54, leaving little room for error if macro pressures stall enterprise IT spending. Slower software adoption would immediately pressure the top-line growth rate.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityFair

Gross margin stands high at 75.6% and free cash flow margin sits at 76th percentile sector rank. Profitability is expanding rapidly as operating cash flow hit $513 million, proving the business scales efficiently.

MoatFair

Enterprise switching costs lock in large corporate clients, supported by an operating margin ranking in the top quartile of its sector at the 43rd percentile and robust gross margins.

GrowthSteady

Revenue grew 16.6% to reach $1.7 billion, accelerating significantly compared to prior years where growth stalled below 10% annually.

Financial healthStrong

Debt is zero with net cash of $426 million, while interest coverage of nearly 640x makes debt costs a rounding error. Free cash flow reached $493 million, getting noticeably stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

3 sold $1.9M outside pre-planned sales.

Our sealed record on PEGA

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is PEGA a good business?

Pegasystems scores good on the Cluenex quality check (7.4 of 10), measured against its own industry. Profitability is fair, moat fair, growth steady and financial health strong.

Are insiders buying PEGA?

In the last 90 days of SEC Form 4 filings: 3 sold $1.9M outside pre-planned sales.

When does PEGA report earnings?

Oct 20, 2026, after the close.

For members

See PEGA today

  • Today's verdict on PEGA, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Pegasystems (PEGA)”, https://cluenex.com/stocks/pega/, data as of Oct 10, 2026.