Key Highlights

  • Pegasystems' $0.03 quarterly dividend goes ex-dividend October 1, 2026 and is payable October 15 to shareholders of record.
  • Second-quarter total revenue was $420,716 thousand versus $384,512 thousand, with GAAP net income of $13,334 thousand.
  • GAAP diluted EPS was $0.08 versus $0.17, and non-GAAP diluted EPS was $0.35 versus $0.28.
  • Cash flow from operations and free cash flow both exceeded $285 million in the first half of 2026.

Overview

Pegasystems Inc.'s (NASDAQ:PEGA) $0.03 quarterly dividend, declared September 14, 2026, yields 0.36%. Second-quarter GAAP diluted EPS was $0.08 and non-GAAP diluted EPS was $0.35, and first-half cash flow from operations and free cash flow both exceeded $285 million. The company said it returned substantial capital to shareholders.

Dividend Program and Shareholder Returns

Pegasystems' board declared a quarterly dividend of $0.03 per common share on September 14, 2026, payable October 15 to shareholders of record on October 1.

The latest filing identifies no special or supplemental common dividend. Dividend declarations remain subject to board approval.

About the Company

Pegasystems, based in Waltham, Massachusetts, describes itself as the Enterprise Transformation Company and has provided software to large organizations since 1983. Its Pega Cloud offering generated $213,934 thousand of second-quarter revenue, which was 51% of total revenue. Annual contract value, revenue timing and cash flow are the measures the company emphasizes.

Financial Performance Behind the Payout

Pegasystems reported second-quarter total revenue of $420,716 thousand versus $384,512 thousand, up 9%. GAAP net income was $13,334 thousand, and GAAP diluted EPS was $0.08 versus $0.17, a 53% decrease. Non-GAAP net income was $59,533 thousand versus $50,151 thousand, up 19%, and non-GAAP diluted EPS was $0.35 versus $0.28, up 25%.

For the first half, total revenue was $850,689 thousand versus $860,145 thousand, down 1%. GAAP diluted EPS was $0.26 versus $0.63, and non-GAAP diluted EPS was $0.81 versus $1.04. Non-GAAP net income was $142,601 thousand versus $190,693 thousand, down 25%.

Contract Value, Cash Flow and Capital Returns

Total annual contract value grew 7% year over year, or 8% in constant currency, and Pega Cloud annual contract value grew 22%. First-half cash flow from operations and free cash flow both exceeded $285 million, which the company describes as record first-half cash flow.

The company's release states that, because of the factors discussed under annual contract value, cash flow generation may continue to be adversely affected for the rest of the year.

The company released Pega Infinity 26 during the quarter and said clients responded to its no per-token cost approach to AI.

Outlook

Pegasystems' release states that cash flow generation may continue to be adversely affected for the rest of the year because of the factors discussed under annual contract value. Total annual contract value growth of 7% and Pega Cloud annual contract value growth of 22% are the measures the company reports for the quarter.