Pegasystems posts adjusted EPS of $0.35; Agree Realty raises lower end of guidance
Key Facts
Pegasystems' adjusted diluted earnings per share rose to $0.35 in the third quarter of 2026, according to the company's quarterly earnings disclosure, alongside revenue growth. Adjusted earnings per share increased 17% year on year from $0.30 in the third quarter of 2025. The improvement came as the company reported a decline in reported net income and lower free cash flow for the nine months ended September. Third-quarter revenue totaled $393,359 thousand, according to the earnings table published in the company's financial disclosure. Revenue rose 3% from $381,350 thousand in the corresponding period, growing more slowly than adjusted earnings per share.
On a reported basis, Pegasystems posted net income of $14,092 thousand for the third quarter of 2026, according to its financial disclosure. The company had reported net income of $43,364 thousand in the third quarter of the previous year, marking a year-on-year decline of 68%. Reported quarterly net income thus fell while diluted earnings per share rose under the company's adjusted measure. Free cash flow for the nine months ended September totaled $289,825 thousand, according to figures in the same disclosure. The company compared that amount with free cash flow of $338,311 thousand in the corresponding period of 2025, a year-on-year decline of 14%.
In its cloud business, Pegasystems reported 20% year-on-year growth in Pega Cloud annual contract value at the end of the third quarter of 2026. Cloud contracts accounted for 59% of total annual contract value, according to the company's accompanying earnings statement, representing more than half of the total. Commenting on contract performance, Chief Financial Officer Ken Stillwell said annual contract value growth remained weak relative to the market opportunity. Stillwell attributed this primarily to "go-to-market execution challenges," according to the wording in the company's quarterly earnings statement. The chief financial officer's assessment of strategy execution accompanied the announcement of expanding cloud contracts and their rising share of Pegasystems' total annual contract value.
In separate third-quarter 2026 results, Agree Realty reported adjusted funds from operations of $1.15 per diluted share, according to its official disclosure. Net income attributable to common stockholders totaled $66.5 million for the same period, according to the company's quarterly earnings statement. The company revised its full-year 2026 guidance range for adjusted funds from operations per diluted share to $4.58–4.59. The previous guidance range was $4.57–4.59 per share, according to the comparison Agree Realty provided in its earnings statement. The revision therefore raised only the lower end of the annual range, leaving the upper end unchanged, alongside the announcement of third-quarter adjusted funds from operations.
Detailing its property activity, Agree Realty said investment volume during the third quarter of 2026 totaled approximately $357.7 million across the company's external growth platforms. Its property portfolio was approximately 99.8% leased at the end of September, according to the statement outlining its results and portfolio position at the close of the period. The company ended the quarter with approximately $2.0 billion in liquidity, including its revolving credit facility and unsettled forward equity, as well as cash on hand. On shareholder distributions, Agree Realty announced an increase in its monthly cash dividend per common share to $0.271 for October. The dividend increase was announced in the same disclosure that included the revision to the lower end of annual guidance and figures for property investment, liquidity and the portfolio's leased rate.
On its investment approach going forward, Agree Realty Chief Executive Joey Agree emphasized prioritizing value when selecting transactions, using the phrase "value over volume." He also stressed maintaining liquidity to capitalize on changes in the transaction market, according to his comments in the company's third-quarter earnings statement. On the earnings calendar, Pegasystems and Agree Realty scheduled their investor calls for October 21, 2026, according to each company's announcement. Pegasystems' conference call and audio webcast begin at 8:00 a.m. U.S. Eastern Daylight Time, according to the company's announcement on its financial results discussion. Agree Realty will hold its call for analysts and investors at 9:00 a.m. U.S. Eastern Time, according to the schedule in its third-quarter earnings disclosure.