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 software company that specializes in customer engagement and process automation solutions....

Key Metrics to Watch

Revenue Growth

Revenue growth is crucial for assessing the company's ability to expand its market presence and attract new customers.

N/A

Earnings Per Share (EPS)

EPS is a key indicator of profitability and is closely watched by investors to gauge financial performance.

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 software company that specializes in customer engagement and process automation solutions. Operating in the Information Technology sector, Pegasystems focuses on helping businesses improve their customer interactions and operational efficiency, which is 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 EPS of $0.46, missing estimates by nearly 30%. The stock reacted negatively, dropping 10.3% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

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

Bull Case

If Pegasystems can demonstrate strong revenue growth and improved customer retention, it could lead to a positive market reaction and restore investor confidence.

Bear Case

Conversely, if the company fails to meet expectations again, it could further erode trust and lead to a significant decline in the stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to analyst expectations?

Given the significant miss last quarter, the market will closely scrutinize EPS to gauge whether the company is on a recovery path.

What is the current customer retention rate and how does it compare to previous quarters?

Customer retention is critical for long-term growth, and any decline could signal deeper issues within the company.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Pegasystems' ability to rebound from its last earnings miss, as historical patterns show a strong recovery potential following prior misses.

Supporting Evidence

The company has a high EPS beat rate of 88%, indicating potential for positive surprises.

Options pricing suggests a significant move, which may reflect investor anticipation of a recovery.

The historical average absolute move post-earnings is 3.53%, suggesting the potential for a larger reaction.

Key Risk

If customer retention rates show significant improvement, it could challenge the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results will be pivotal in determining whether Pegasystems can regain momentum after a disappointing previous quarter.

Bull Confirmed If

An EPS of $0.70 or higher would confirm the bull case and indicate a strong recovery.

Bear Confirmed If

An EPS below $0.40 would confirm the bear case and suggest ongoing challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±22.72%

Historical Avg

±3.5%

Pricing rich

The options market is pricing in a significant move, suggesting heightened uncertainty or anticipation 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)

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 turnaround.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await clearer guidance.

Miss

If the company misses expectations again, history suggests a drop of about 10.30%, further damaging investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer retention rates and how they compare to previous quarters.
2Details on revenue growth and whether it meets or exceeds expectations.
3Management's outlook on future quarters and any strategic initiatives they plan to implement.
4Insights into market demand for their software solutions and how they are adapting to industry changes.
5Any commentary on competitive pressures and how Pegasystems plans to address them.

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Company Snapshot

Pegasystems Inc. is a software company that specializes in customer engagement and process automation solutions....

Key Metrics to Watch

Revenue Growth

Revenue growth is crucial for assessing the company's ability to expand its market presence and attract new customers.

N/A

Earnings Per Share (EPS)

EPS is a key indicator of profitability and is closely watched by investors to gauge financial performance.

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

In Q1 2026, Pegasystems reported an EPS of $0.46, missing estimates by nearly 30%. The stock reacted negatively, dropping 10.3% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

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

Bull Case

If Pegasystems can demonstrate strong revenue growth and improved customer retention, it could lead to a positive market reaction and restore investor confidence.

Bear Case

Conversely, if the company fails to meet expectations again, it could further erode trust and lead to a significant decline in the stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to analyst expectations?

Given the significant miss last quarter, the market will closely scrutinize EPS to gauge whether the company is on a recovery path.

What is the current customer retention rate and how does it compare to previous quarters?

Customer retention is critical for long-term growth, and any decline could signal deeper issues within the company.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Pegasystems' ability to rebound from its last earnings miss, as historical patterns show a strong recovery potential following prior misses.

Supporting Evidence

The company has a high EPS beat rate of 88%, indicating potential for positive surprises.

Options pricing suggests a significant move, which may reflect investor anticipation of a recovery.

The historical average absolute move post-earnings is 3.53%, suggesting the potential for a larger reaction.

Key Risk

If customer retention rates show significant improvement, it could challenge the current bearish sentiment.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's results will be pivotal in determining whether Pegasystems can regain momentum after a disappointing previous quarter.

Bull Confirmed If

An EPS of $0.70 or higher would confirm the bull case and indicate a strong recovery.

Bear Confirmed If

An EPS below $0.40 would confirm the bear case and suggest ongoing challenges.

Pre-Earnings Positioning

Options Market

Implied Move

±22.72%

Historical Avg

±3.5%

Pricing rich

The options market is pricing in a significant move, suggesting heightened uncertainty or anticipation 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)

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 turnaround.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await clearer guidance.

Miss

If the company misses expectations again, history suggests a drop of about 10.30%, further damaging investor confidence.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on customer retention rates and how they compare to previous quarters.
2Details on revenue growth and whether it meets or exceeds expectations.
3Management's outlook on future quarters and any strategic initiatives they plan to implement.
4Insights into market demand for their software solutions and how they are adapting to industry changes.
5Any commentary on competitive pressures and how Pegasystems plans to address them.