Pegasystems Price Targets Cut to $64 and $65 with 52% Upside
J.P. Morgan cut Pegasystems’ price target from $74 to $64, implying 52.4% upside, while RBC trimmed its target from $80 to $65 on cautious 2026 guidance. The company reported Q4 ACV up 17%, cloud ACV up 33%, $491 million free cash flow and forecasted $2 billion revenue with 15% ACV growth 2026.
1. Price Target Revisions
J.P. Morgan lowered its price target on Pegasystems from $74 to $64, implying a 52.4% upside, while RBC reduced its target from $80 to $65 based on a cautious outlook for fiscal 2026.
2. Q4 Financial Results
The company delivered total ACV growth of 17% year-over-year and Pega Cloud ACV growth of 33%, generating $491 million in free cash flow, exceeding guidance, and completed significant share buybacks and debt repayments.
3. 2026 Guidance
Pegasystems forecasted $2 billion in revenue for 2026, 15% total ACV growth and $575 million in free cash flow, reflecting confidence in sales momentum, cloud migration and Blueprint platform investments despite conservative initial guidance.