Pegasystems Highlights Strong Q4, Guides for Continued Growth in 2026

Cloud adoption and AI-powered Blueprint product drive momentum for software company

Published on Feb. 14, 2026

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Pegasystems (NASDAQ:PEGA) executives reported a strong finish to 2025, with total annual contract value (ACV) rising 17% year-over-year. The company saw particular growth in Pega Cloud ACV, which increased 33%. Pegasystems also saw improvements in profitability and cash generation, with free cash flow up 45% to $491 million. Looking ahead to 2026, the company guided for 15% ACV growth, $2 billion in total revenue, and $575 million in free cash flow.

Why it matters

Pegasystems' performance highlights the growing demand for cloud-based software solutions and the company's ability to capitalize on trends around digital transformation and automation. The strong financial results and positive outlook suggest Pegasystems is well-positioned to continue its growth trajectory in the coming year.

The details

Key drivers of Pegasystems' Q4 performance included a 33% increase in Pega Cloud ACV and a 28% increase in contractually committed backlog, which surpassed $2 billion for the first time. The company also reported improvements in profitability, with free cash flow up 45% year-over-year to $491 million. For 2026, Pegasystems guided for 15% ACV growth, $2 billion in total revenue, and $575 million in free cash flow.

  • Pegasystems reported Q4 2025 earnings on February 14, 2026.
  • The company's annual investor session will be held on June 8, 2026 in Las Vegas.

The players

Pegasystems

A software company specializing in customer engagement and digital process automation solutions, headquartered in Cambridge, Massachusetts.

Ken Stillwell

Chief Operating Officer and CFO of Pegasystems.

Alan Trefler

Founder and CEO of Pegasystems.

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What they’re saying

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