William Blair Has Negative View of Pegasystems Q3 Earnings

Key Points

• William Blair has revised Pegasystems' Q3 2025 earnings per share (EPS) estimate down from $0.12 to $0.06, impacting sentiment around the technology company's performance.
• Pegasystems reported Q2 earnings of $0.28 EPS, exceeding analysts' expectations of $0.24, along with a revenue of $384.51 million, up 9.5% year-over-year.
• Despite negative revisions, Pegasystems maintains a consensus rating of "Moderate Buy" with an average price target of $59.80 from various analysts.

Pegasystems Inc. (NASDAQ:PEGA - Free Report) - Analysts at William Blair decreased their Q3 2025 earnings per share (EPS) estimates for Pegasystems in a research note issued on Wednesday, July 23rd. William Blair analyst J. Roberge now forecasts that the technology company will earn $0.06 per share for the quarter, down from their prior estimate of $0.12. The consensus estimate for Pegasystems' current full-year earnings is $1.89 per share. William Blair also issued estimates for Pegasystems' Q1 2026 earnings at $0.40 EPS and Q3 2026 earnings at $0.17 EPS.

Pegasystems (NASDAQ:PEGA - Get Free Report) last issued its quarterly earnings results on Tuesday, July 22nd. The technology company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.24 by $0.04. The business had revenue of $384.51 million for the quarter, compared to the consensus estimate of $345.07 million. Pegasystems had a return on equity of 42.42% and a net margin of 13.14%. The business's quarterly revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the firm posted $0.26 earnings per share.

Other equities analysts also recently issued reports about the company. Wall Street Zen downgraded Pegasystems from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Rosenblatt Securities upped their target price on Pegasystems from $56.00 to $59.00 and gave the company a "buy" rating in a research report on Monday, July 21st. JMP Securities upped their target price on Pegasystems from $55.00 to $62.50 and gave the company a "market outperform" rating in a research report on Tuesday, June 3rd. DA Davidson upped their target price on Pegasystems from $50.00 to $60.00 and gave the company a "neutral" rating in a research report on Thursday. Finally, KeyCorp cut their target price on Pegasystems from $59.00 to $47.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 16th. Two equities research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. According to data from MarketBeat.com, Pegasystems presently has a consensus rating of "Moderate Buy" and an average price target of $59.80.

Pegasystems Trading Up 1.3%

Shares of PEGA stock opened at $58.83 on Monday. The business's fifty day simple moving average is $51.29 and its 200-day simple moving average is $45.65. Pegasystems has a 12-month low of $29.84 and a 12-month high of $59.85. The company has a market cap of $10.06 billion, a PE ratio of 50.50 and a beta of 1.13.

Pegasystems Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Tuesday, July 1st were issued a $0.03 dividend. This represents a $0.12 annualized dividend and a yield of 0.20%. This is a positive change from Pegasystems's previous quarterly dividend of $0.02. The ex-dividend date of this dividend was Tuesday, July 1st. Pegasystems's dividend payout ratio is presently 10.34%.

Insider Buying and Selling at Pegasystems

In other news, CAO Efstathios A. Kouninis sold 1,000 shares of the stock in a transaction dated Friday, May 16th. The shares were sold at an average price of $49.63, for a total transaction of $49,625.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider John Gerard Higgins sold 23,660 shares of the stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $51.12, for a total transaction of $1,209,380.90. Following the sale, the insider directly owned 38,026 shares in the company, valued at approximately $1,943,698.99. The trade was a 38.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 241,588 shares of company stock worth $13,769,343. 50.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Treasurer of the State of North Carolina raised its position in shares of Pegasystems by 0.6% during the 4th quarter. Treasurer of the State of North Carolina now owns 19,597 shares of the technology company's stock worth $1,826,000 after purchasing an additional 120 shares during the last quarter. Tower Research Capital LLC TRC raised its position in shares of Pegasystems by 2.4% during the 4th quarter. Tower Research Capital LLC TRC now owns 5,875 shares of the technology company's stock worth $548,000 after purchasing an additional 139 shares during the last quarter. Amalgamated Bank raised its position in shares of Pegasystems by 5.3% during the 1st quarter. Amalgamated Bank now owns 3,060 shares of the technology company's stock worth $213,000 after purchasing an additional 153 shares during the last quarter. GAMMA Investing LLC raised its holdings in Pegasystems by 50.5% in the 1st quarter. GAMMA Investing LLC now owns 599 shares of the technology company's stock valued at $42,000 after acquiring an additional 201 shares during the last quarter. Finally, Focus Partners Wealth raised its holdings in Pegasystems by 9.1% in the 4th quarter. Focus Partners Wealth now owns 3,533 shares of the technology company's stock valued at $329,000 after acquiring an additional 294 shares during the last quarter. Institutional investors and hedge funds own 46.89% of the company's stock.

Pegasystems Company Profile

Pegasystems Inc develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients' processes and workflows.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.