PEGA

I maintain a hold rating on Pegasystems due to concerns over growth execution despite a less demanding valuation. PEGA's Q2 showed 9% revenue growth and strong Pega Cloud momentum, but total ACV growth lagged at 7%, reflecting budget shifts rather than organic demand. The company faces a high burden to deliver H2 ACV growth after missing first-half targets, raising uncertainty around the growth narrative.

Pegasystems Inc (NASDAQ:PEGA) reported worse-than-expected second-quarter financial results, after the closing bell on Tuesday.

Pegasystems Inc. (PEGA) Q2 2026 Earnings Call Transcript

PEGA's revenues rise 9.4% as cloud sales surge, but earnings miss estimates and delayed AI-era buying decisions slow ACV growth.

Pegasystems (NASDAQ:PEGA) shares fell about 15% following the release of its second quarter 2026 results, after the enterprise software company missed Wall Street expectations on both earnings and revenue. The company reported adjusted earnings per share of $0.35 for the quarter, below analyst estimates of $0.43.

First it was IBM and now Pegasystems is also reporting that customers are changing purchasing decisions as the AI market evolves.

Pegasystems NASDAQ: PEGA executives said the company faced a challenging first half of 2026 as customer uncertainty around artificial intelligence, a back-half-weighted renewal portfolio and go-to-market execution issues weighed on annual contract value growth.

Although the revenue and EPS for Pegasystems (PEGA) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the Enterprise Transformation Company™, released its financial results for the second quarter of 2026. "Pega Infinity™ 26 uniquely deploys the power of AI with predictable outcomes and predicable costs by applying agents at design time to optimize run-time token use,” said Alan Trefler, founder and CEO, Pega. "Letting language models do everything is risky and expensive, and using AI to write mountains of code creates significant.

WALTHAM, Mass.--(BUSINESS WIRE)--Pegasystems Inc. (NASDAQ: PEGA), the enterprise AI software company for mission-critical work, today announced it will report financial results for the second quarter of 2026 on Tuesday, July 21, 2026, after market close. A conference call and audio-only webcast will be conducted at 8:00 a.m. EDT on Wednesday, July 22, 2026. Members of the public and investors are invited to join the call and participate in the question and answer session by dialing 1 (833) 461-.