What is the 13F Pro Quality Score for PEGA?

13F Pro ranks PEGASYSTEMS INC (PEGA) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View PEGA's current score at https://13fpro.ai/research/PEGA (free sign-up required for the full ranking).

Where does 13F Pro source PEGA data?

All PEGASYSTEMS INC fundamentals and ownership data come directly from SEC EDGAR. PEGASYSTEMS INC files with the SEC under CIK 1013857. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is PEGA in?

PEGASYSTEMS INC (PEGA) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives PEGA's revenue?

Per PEGASYSTEMS INC's latest 10-Q filed with the SEC on 2026-04-21, the biggest revenue drivers are: Subscription services ($280.3M, +23% YoY); Subscription license ($94.9M, -49% YoY); Consulting ($54.8M, -9% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/research/PEGA.

What are PEGA's largest expenses?

PEGASYSTEMS INC's latest 10-Q reports these as the largest expense items: Selling and marketing ($155.6M, +13% YoY); General and administrative ($48.6M, +44% YoY); Research and development ($82.0M, +10% YoY). Sourced directly from SEC EDGAR filing text for Q1 FY2026 (quarter ended March 31, 2026).

How often is PEGA research updated on 13F Pro?

PEGA's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

PEGASYSTEMS INC(PEGA)Stock Analysis

AI analysis on 2,800+ stocks →Deep AI analysis on 2,800+ stocks →

Technology →Nasdaq

Institutional-grade research for retail investors

SEC EDGAR: CIK 1013857 PEGA stock profile & AI dashboard →

13F Pro Quality Score

69.6/100

Rank #357 of 2,879 stocksTOP 25%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.

Revenue Growth

73.1/100

Profitability

79.2/100

Balance Sheet

89.5/100

Earnings Quality

30.0/100

Free Cash Flow

87.4/100

Institutional Flow

24.3/100

Revenue Scale

59.6/100

Dilution Risk

18.4/100

PEGA Stock Analysis & AI Quality Score

AI stock analysis and institutional research for PEGASYSTEMS INC (PEGA), a Technology sector company. 13F Pro's AI-powered ranking engine scores PEGA at 69.6/100 on a 32-signal composite quality model, placing it at rank #357 of 2,879 stocks — the top 25% of the AI-ranked universe. PEGA scores in the top quartile across balance sheet strength (89.5), free cash flow (87.4), profitability (79.2). Areas of concern include institutional flow (24.3) and earnings quality (30.0), which score below median versus the broader universe. Shareholder dilution risk is elevated at 18.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q1 2026), PEGASYSTEMS INC reports quarterly revenue of $430.0M, net income of $32.8M, an operating margin of 8.6%. Top institutional holders of PEGA by reported 13-F value include BlackRock,, VANGUARD PORTFOLIO MANAGEMENT, AQR CAPITAL MANAGEMENT, based on the most recent SEC filings. PEGA trades on the Nasdaq exchange and files with the SEC under CIK 1013857. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate PEGA daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PEGASYSTEMS INC directly from SEC EDGAR. PEGASYSTEMS INC's 13F Pro composite quality score has ranged between 8 and 70 since 2021, currently 69.6 — an improving long-term trajectory across 56 quarterly and live scoring snapshots.

✦

Fun facts about PEGASYSTEMS INC

Quirks, history, and lore behind PEGA — the kind of stuff that makes a stock memorable.

1
The Basics
U.S. enterprise software company · mid-cap · listed on Nasdaq · headquartered in Massachusetts.
2
The Numbers
Annual revenue in the range of roughly $1.5 billion, with a heavy tilt toward subscription and cloud contracts — the old perpetual-license era is firmly behind it.
3
The History
Founded in 1983 by a computer scientist who had worked at MIT, it was an early pioneer in rules-based software long before AI became a buzzword.
4
The Secret
Its core platform automates business process management and customer relationship workflows — essentially telling large organizations what to do next, at massive scale.
5
The Lore
Its clients include some of the world's biggest banks, insurers, and government agencies — the kind of customers who don't switch vendors without a multi-year migration nightmare and a few grey hairs.
6
The Giveaway
Its flagship platform carries the "Pega" name, its ticker is those same four letters, and its founder Alan Trefler has run the company for over four decades — chess champion turned software CEO.

▶ Think you know your stocks? Play the Daily Ticker

What's Driving PEGA's Business? Latest 10-Q Breakdown

✓ 24/24 datapoints verified

AI-extracted from PEGASYSTEMS INC's 10-Q filed 2026-04-21 — Q1 FY2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Q1 revenue declined 10% YoY to $430M as subscription license sales fell 49%, though Pega Cloud grew 36% and ACV reached $1.62B.

Biggest Revenue Drivers

Total revenue: $430.0M-10% YoY

Subscription services$280.3M+23% YoY

Expanded adoption of Pega Cloud by clients

Subscription license$94.9M-49% YoY

Several large multi-year contracts recognized in Q1 2025 did not recur

Consulting$54.8M-9% YoY

Decrease in consultant billable hours in Americas region

Largest Expense Items

Selling and marketing$155.6M+13% YoY

Increase in compensation and benefits of $10.7M from headcount and equity compensation increases

General and administrative$48.6M+44% YoY

Increase of $13.4M in legal fees from proceedings outside ordinary course of business

Research and development$82.0M+10% YoY

Increase in compensation and benefits of $5.6M from headcount and equity compensation increases

Cost of revenue$106.8M+4% YoY

Personnel-related costs increased to support cloud operations

Margins: Gross margin declined to 75% from 78% YoY, primarily due to increased personnel-related costs in cloud operations. Operating margin compressed to 9% from 27% YoY as operating expenses grew faster than revenue, driven by legal costs and headcount investments.

Watch Items from the Filing

Appian Corp. litigation: $2.06B judgment under appeal; Virginia Court of Appeals reversed and ordered new trial. Company unable to reasonably estimate possible damages; new trial scheduled with first status conference May 7, 2026.
Derivative litigation settlement in principle: $9.75M accrual includes $7M special dividend and plaintiff attorney fees pending final court approval on June 25, 2026; actual losses could exceed accrual if court denies settlement.
Subscription license revenue declined 49% YoY; large multi-year contracts in Q1 2025 non-recurring. Shift toward Pega Cloud-based offerings reduces maintenance and license revenue.
Appian defamation counterclaim seeks $31.8M in lost profits and $109.5M in alleged unjust enrichment from 2022-2025 business; Pega claims $41.9M in damages. Trial scheduled November 2026; summary judgment motions due June 2026.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-Q on SEC EDGAR →Share on X

Revenue

Q1 2026

$430.0M

Net Income

Q1 2026

$32.8M

Free Cash Flow

Q1 2026

$206.5M

Operating Margin

Q1 2026

8.6%

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro+

Revenue

+16.6% YoY

$1.75BFY 2025

FY22 $1.32BFY23 $1.43BFY24 $1.50BFY25 $1.75B

Net Income

+296.7% YoY

$393.4MFY 2025

FY22 $-345.6MFY23 $67.8MFY24 $99.2MFY25 $393.4M

Operating Income

+112.4% YoY

$263.1MFY 2025

FY22 $-109.4MFY23 $81.0MFY24 $123.9MFY25 $263.1M

EPS (Diluted)

+1449.1% YoY

$2.13FY 2025

FY22 $-1.05FY23 $0.09FY24 $0.14FY25 $2.13

Total Assets

-7.7% YoY

$1.63BFY 2025

FY22 $1.36BFY23 $1.51BFY24 $1.77BFY25 $1.63B

Op. Cash Flow

+46.1% YoY

$505.2MFY 2025

FY22 $22.3MFY23 $217.8MFY24 $345.9MFY25 $505.2M

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021	FY 2020
Revenue	$1.75B +16.6%	$1.50B +4.5%	$1.43B +8.7%	$1.32B +8.8%	$1.21B +19.1%	$1.02B
Net Income	$393.4M +296.7%	$99.2M +46.3%	$67.8M +119.6%	$-345.6M -448.2%	$-63.0M -2.7%	$-61.4M
Operating Income	$263.1M +112.4%	$123.9M +53.0%	$81.0M +174.0%	$-109.4M -15.5%	$-94.7M +34.0%	$-143.5M
EPS (Diluted)	$2.13 +1449.1%	$0.14 +48.6%	$0.09 +108.8%	$-1.05 -448.1%	$-0.19 -1.3%	$-0.19
Total Assets	$1.63B -7.7%	$1.77B +17.0%	$1.51B +11.3%	$1.36B -14.8%	$1.59B -0.7%	$1.60B
Operating Cash Flow	$505.2M +46.1%	$345.9M +58.8%	$217.8M +875.0%	$22.3M -42.9%	$39.1M +7048.1%	$-563.0K

AI Insight: PEGA Financial Trends

PEGA demonstrates strong Q4 seasonality with revenue peaking at $504M in Q4 2025, but sequential decline to $430M in Q1 2026 raises sustainability questions.

• Revenue shows clear Q4 seasonality, jumping from $381M in Q3 2025 to $504M in Q4 2025, then declining to $430M in Q1 2026.

• Operating cash flow surged from $56M in Q3 2025 to $212M in Q1 2026, showing strong cash generation momentum.

• Equity grew from $435M in Q2 2024 to $706M in Q1 2026, reflecting strong balance sheet strengthening over eight quarters.

⚠ Operating income volatility with sharp swings from $104M in Q4 2025 to $37M in Q1 2026 suggests margin pressure.

⚠ Revenue declined 15% sequentially from Q4 2025 peak of $504M to Q1 2026's $430M, testing post-seasonal sustainability.

AI Insight: PEGA Ratio Trends

PEGA exhibits extreme quarterly volatility with operating margins swinging from -3.6% to 29.1% across recent quarters, signaling unstable underlying operations.

• Operating margin plunged from 20.7% in Q4 2025 to 8.6% in Q1 2026, continuing erratic quarterly performance.

• ROIC collapsed from 53.0% in Q4 2025 to 21.1% in Q1 2026, though remains well above cost of capital.

• Net profit margin dropped from 46.5% in Q4 2025 to 7.6% in Q1 2026, reflecting high earnings volatility.

⚠ Extreme quarter-to-quarter margin swings suggest lumpy revenue recognition or cost structure issues requiring management explanation.

⚠ Q4 quarters show consistently strong performance while Q1-Q3 periods remain weak, indicating potential seasonality patterns.

Get alerted when PEGA's score changes

Free account: watchlist tracking, the daily AI brief, and the AI screener.

Passwordless sign-in · Payments by Stripe · Auth by Clerk

Available Research

13F Pro tracks comprehensive data for PEGASYSTEMS INC including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of PEGA

BlackRock, Inc.
$410.2M9,637,018 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$270.8M6,361,923 sh
AQR CAPITAL MANAGEMENT LLC
$190.9M4,539,552 sh
VANGUARD CAPITAL MANAGEMENT LLC
$177.1M4,160,456 sh
STATE STREET CORP
$121.6M2,856,028 sh
WELLINGTON MANAGEMENT GROUP LLP
$114.4M2,689,125 sh
GEODE CAPITAL MANAGEMENT, LLC
$107.2M2,518,813 sh
DIMENSIONAL FUND ADVISORS LP
$107.2M2,519,022 sh
MASSACHUSETTS FINANCIAL SERVICES CO /MA/
$101.4M2,377,052 sh
FIRST TRUST ADVISORS LP
$87.2M2,048,599 sh

Fund	Value	Shares
BlackRock, Inc.	$410.2M	9,637,018
VANGUARD PORTFOLIO MANAGEMENT LLC	$270.8M	6,361,923
AQR CAPITAL MANAGEMENT LLC	$190.9M	4,539,552
VANGUARD CAPITAL MANAGEMENT LLC	$177.1M	4,160,456
STATE STREET CORP	$121.6M	2,856,028
WELLINGTON MANAGEMENT GROUP LLP	$114.4M	2,689,125
GEODE CAPITAL MANAGEMENT, LLC	$107.2M	2,518,813
DIMENSIONAL FUND ADVISORS LP	$107.2M	2,519,022
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	$101.4M	2,377,052
FIRST TRUST ADVISORS LP	$87.2M	2,048,599

More Technology Companies

View all Technology →

AGILENT TECHNOLOGIES, INC.

AAOI

APPLIED OPTOELECTRONICS, INC.

AAPL

Apple Inc.

ABNB

Airbnb, Inc.

ACCL

Acco Group Holdings Ltd

ACCS

ACCESS Newswire Inc.

ACFN

ACORN ENERGY, INC.

ACIW

ACI WORLDWIDE, INC.

Put PEGA on your watchlist

Track score changes the day PEGASYSTEMS INC files with the SEC, follow the hedge funds that own it, screen 2,800+ AI-scored stocks, and get the daily brief — free.

View Pricing

Free tier includes 13F data, economic indicators, and market overview. Pro starts at $6.67/mo (billed annually).

Passwordless sign-in · Payments by Stripe · Auth by Clerk

Popular Research

AAPL

Apple

MSFT

Microsoft

NVDA

NVIDIA

GOOG

Alphabet

AMZN

Amazon

Is PEGA a good stock to buy?

13F Pro's AI-powered analysis of PEGASYSTEMS INC (PEGA) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for PEGA are available on the PEGA stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.

Which hedge funds own PEGA?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling PEGA. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of PEGASYSTEMS INC's investment landscape.