Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software across the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and the Asia-Pacific. Its offerings include Pega Infinity, a software portfolio comprising Pega Customer Decision Hub, Pega Customer Service, and Pega Platform. The company also provides Situational Layer Cake, Pega GenAI Blueprint, Pega Cloud, Pega Catalyst, Pega Academy, and global service assurance and client support services. It primarily markets to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer industries through a direct sales force and partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Waltham, Massachusetts.
Pega's AI-Driven Sales Delays Hit Q2 Earnings, Cloud Growth Still Strong
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Q2 Earnings Miss and Slowing Contract Growth Pegasystems reported Q2 adjusted EPS of $0.35, missing the $0.43 consensus, and revenue of $420.7 million also fell short. Management warned that AI market changes are causing clients to delay purchases, slowing annual contract value growth and potentially pressuring the rest of the year. This directly hurts investor confidence and the stock price.
This is the main new event that caused the stock to drop over 13% and directly answers why PEGA is moving.
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Cloud Business Continues Strong Growth Pega Cloud annual contract value rose 22% year over year, adding $165 million, and cloud now represents 57% of total ACV. Free cash flow reached $288 million in the first half, and the company repurchased 9 million shares for over $360 million. This shows the underlying business is still growing and generating cash.
It provides a positive counterweight to the earnings miss and shows the long-term cloud transition is working.
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Competition from UiPath in Workflow Automation UiPath launched Maestro Case, a new tool for complex enterprise workflows that directly competes with Pegasystems' case management software. UiPath's AI-led approach could attract customers and pressure Pega's market share, especially as clients delay decisions. This adds competitive risk on top of the earnings miss.
It highlights a new competitive threat that could weigh on future growth and investor sentiment.
Q3 2026
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Pega's AI-Driven Sales Delays Hit Q2 Earnings, Cloud Growth Still Strong
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Q2 Earnings Miss and Slowing Contract Growth Pegasystems reported Q2 adjusted EPS of $0.35, missing the $0.43 consensus, and revenue of $420.7 million also fell short. Management warned that AI market changes are causing clients to delay purchases, slowing annual contract value growth and potentially pressuring the rest of the year. This directly hurts investor confidence and the stock price.
This is the main new event that caused the stock to drop over 13% and directly answers why PEGA is moving.
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Cloud Business Continues Strong Growth Pega Cloud annual contract value rose 22% year over year, adding $165 million, and cloud now represents 57% of total ACV. Free cash flow reached $288 million in the first half, and the company repurchased 9 million shares for over $360 million. This shows the underlying business is still growing and generating cash.
It provides a positive counterweight to the earnings miss and shows the long-term cloud transition is working.
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Competition from UiPath in Workflow Automation UiPath launched Maestro Case, a new tool for complex enterprise workflows that directly competes with Pegasystems' case management software. UiPath's AI-led approach could attract customers and pressure Pega's market share, especially as clients delay decisions. This adds competitive risk on top of the earnings miss.
It highlights a new competitive threat that could weigh on future growth and investor sentiment.
News & notes movingPEGA
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Artificial Intelligence▲
Pegasystems Launches Launchpad.io Conversational AI Assistant
Pegasystems announced Launchpad.io's AI Assistant, a conversational development tool that lets enterprises design, build, and evolve applications using natural language while preserving governance, reliability, and scalability. The assistant turns plain-language business requirements directly into application logic, workflows, and data models, which could widen participation in enterprise software development across non-technical teams. The launch follows the general availability of Pega Infinity 26 in July 2026, which introduced broader AI assistants, agentic workflows, and no token pricing across the core platform, with Launchpad.io extending those ideas into more accessible, conversational app creation. Pegasystems' narrative projects $2.3 billion in revenue and $334.9 million in earnings by 2029, requiring 10.1% yearly revenue growth and an earnings increase of about $10.9 million from $324.0 million today, while some of the most optimistic analysts already expected about US$2.4 billion in revenue and roughly US$397.9 million in earnings. The company's forecasts yield a $40.00 fair value, an 18% upside to its current price.
DocuSign Q2 Revenue Rises 9.4% to $875.7 Million, Beats Estimates
DocuSign reported second-quarter revenue of $875.7 million, up 9.4% year on year and 0.9% above analysts' expectations, in what the company called a strong quarter with beats on adjusted operating income and annual recurring revenue estimates. CEO Allan Thygesen said Docusign is raising its outlook as AI accelerates momentum across the business, adding that its AI agents are now securely executing contract workflows end-to-end and the IAM platform ingested a record volume of agreements. The stock is up 5.3% since reporting and currently trades at $69.50. Among the 16 productivity software stocks tracked, group revenues beat consensus by 3.1% and next-quarter revenue guidance came in 0.9% above estimates, with share prices up 17.3% on average since the latest results. SoundHound AI posted the group's fastest growth, with revenue of $61.9 million up 45% year on year and an 18.1% estimate beat, though its stock is down 6.5% since reporting at $6.02, while Pegasystems delivered the weakest performance against estimates with revenue of $420.7 million, up 9.4% but 1.5% short of expectations, even as its stock has risen 13.7% to $35.19.
Pega Named a Leader in Gartner Magic Quadrant for Business Orchestration and Automation Technology
Pegasystems Inc. announced that Gartner has named Pega a Leader in the Gartner Magic Quadrant for Business Orchestration and Automation Technology and recognized the company in the accompanying Critical Capabilities report for the second consecutive year. Pega was named a Leader for its Completeness of Vision, was positioned highest for Ability to Execute, and received the highest score for both the Critical Capabilities Case Management use case and the Adaptive Work use case. The Magic Quadrant evaluated 20 vendors across seven criteria within the Ability to Execute and Completeness of Vision categories, while the Critical Capabilities report evaluated the same vendors across 10 criteria and five specific use cases, including Deterministic Workflow Automation, Case Management and Adaptive Work, and Agent Governance and Runtime Control. The reports evaluated Pega Infinity, the company's suite of solutions to help enterprises scale AI, which includes Pega Blueprint, Pega Agentic Process Fabric, Pega Process AI, and Pega's Predictable AI agents. Kerim Akgonul, chief product officer at Pega, said the recognition reflects Pega's ability to combine AI agents with the workflow orchestration, governance, and controls organizations need to drive business transformation.
Artificial Intelligence › Agentic AI & Autonomous Workflows Competition
PEGA · Technology · Positive Pega was named a Leader in Gartner's Magic Quadrant and scored highest in Critical Capabilities for its Pega Infinity AI and workflow orchestration products.
monday.com Q2 Revenue Up 21.9% to $364.6 Million, Beats Estimates
monday.com reported second-quarter revenue of $364.6 million, up 21.9% year on year and 2.6% above analysts' expectations, as the 16 productivity software stocks tracked by the report collectively beat consensus revenue estimates by 3.1%. The company added 287 enterprise customers paying more than $50,000 annually, bringing that total to 4,834, but delivered the weakest guidance update and weakest full-year guidance update among its peers, and missed analysts' billings estimates significantly. SoundHound AI posted the group's best quarter, with revenue of $61.9 million, up 45% year on year and 18.1% above expectations, the biggest estimate beat and fastest revenue growth of the group. Pegasystems had the weakest quarter, with revenue of $420.7 million, up 9.4% year on year but 1.5% short of expectations, while Appian reported revenue of $203.3 million, up 19.1% and 5.1% above estimates, and delivered the highest guidance raise among its peers. Asana reported revenue of $216.4 million, up 9.9% year on year and 1% above expectations, and added 675 enterprise customers paying more than $5,000 annually to reach a total of 26,778. Productivity software stocks are up 17.4% on average since the latest earnings results.
Cloud & Digital Infrastructure › Horizontal SaaS ▲Demand
MNDY · Capital · Neutral monday.com beat on Q2 revenue ($364.6M, +21.9%) but delivered the weakest guidance update and missed billings estimates significantly.
APPN · Capital · Positive Appian reported revenue of $203.3M, up 19.1% and 5.1% above estimates, and delivered the highest guidance raise among its peers.
ASAN · Capital · Positive Asana reported revenue of $216.4M, up 9.9% and 1% above expectations, and added 675 enterprise customers.
PEGA · Capital · Negative Pegasystems had the weakest quarter, with revenue of $420.7M up 9.4% but 1.5% short of expectations.
SOUN · Capital · Positive SoundHound AI posted the group's best quarter, with revenue of $61.9M up 45% and 18.1% above expectations.
Pegasystems Adds Responsible AI Tools to Customer Engagement Studio
Pegasystems has made its Customer Engagement Studio generally available, adding responsible AI, governance, and automation capabilities to its Pega Customer Decision Hub as part of the Pega Infinity 26 release. The company is offering these agentic tools at no extra cost to existing clients, aiming to deepen platform adoption and reinforce trust in AI-driven customer engagement. The launch was showcased at the PegaInnovate Melbourne event. Pegasystems' narrative projects $2.2 billion revenue and $345.7 million earnings by 2029, with a fair value estimate of $43.00 per share, a 28% upside to its current price. Some analysts assume revenue of about US$2.3 billion and earnings near US$326 million by 2029, reflecting concerns about competitive pressure and deal complexity.
Artificial Intelligence › AI Applications & Copilots ▲Competition
PEGA · Technology · Positive Pegasystems makes Customer Engagement Studio generally available with responsible AI and governance, enhancing its platform at no extra cost.
Automation Software Stocks Beat Q2 Revenue Estimates by 5.2%
Automation software stocks reported a strong second quarter, with the five companies tracked beating analysts' consensus revenue estimates by 5.2% and guiding next quarter's revenue 3.8% above expectations. Microsoft led with revenues of $90.01 billion, up 17.7% year on year and exceeding estimates by 2.6%, while SoundHound AI delivered the biggest beat at 18.1% with revenues of $61.9 million, up 45% year on year. Pegasystems was the weakest performer, missing revenue estimates by 1.5% with $420.7 million in revenues, up 9.4% year on year. Appian and ServiceNow also beat estimates, with revenues of $203.3 million and $3.99 billion respectively. Share prices of the group have risen 14.8% on average since the latest earnings results.
Pegasystems, Reddit, AAR, Everforth, and Super Micro made big moves yesterday
Several stocks made significant moves on Wednesday. Pegasystems fell 13.3% after reporting a slowdown in contract growth as clients delayed software purchases. Reddit dropped 5.9% following reports it is reconsidering its AI data-licensing agreement with Google. Everforth rose 14.6% after Truist Securities upgraded the stock to Buy from Hold and raised its price target. Super Micro surged 22.9% after reporting strong preliminary fourth-quarter results, including a massive surge in its gross margin forecast, record-breaking new orders, and a major data center partnership with SpaceX.
Pegasystems Q2 2026 Earnings Show 22% Cloud ACV Growth but Total ACV Misses Expectations
Pegasystems reported a 22% year-over-year increase in Pega Cloud annual contract value, adding $165 million, while total ACV grew only 7% as reported and 8% in constant currency, falling short of expectations. The company generated $288 million in free cash flow during the first half of 2026 and repurchased 9 million shares for over $360 million. Pega Cloud now represents 57% of total ACV. Executives cited market confusion around AI and software development as factors elongating decision cycles and pressuring sales, though they expressed confidence in a strong pipeline and a second-half recovery.
Super Micro Computer surges 25% on strong preliminary results
Super Micro Computer shares surged 25% after the server maker reported preliminary fourth-quarter results with much stronger profitability than expected, offsetting revenue near the low end of guidance. EQT rose over 6.6% on stronger-than-expected second-quarter production and raised its 2026 sales volume guidance to 2,375–2,450 billions of cubic feet equivalent. Amazon slipped 1% after confirming job cuts in its artificial intelligence group. AAR slid almost 11% after fiscal fourth-quarter margins missed estimates, with management citing constrained supplies of used serviceable material. Westinghouse Air Brake Technologies popped 11% to a 52-week high after lifting full-year guidance. Chubb fell more than 3% despite reporting slower property and casualty insurance growth due to underwriting discipline. Dell Technologies and Hewlett Packard Enterprise rose 10% and 5%, respectively, as Super Micro's results boosted server peers. Pegasystems tumbled more than 16% after second-quarter earnings missed expectations. Rocket Lab gained 3.5% on a $266 million U.S. Air Force contract. GE Vernova declined more than 7% despite a revenue beat and raised guidance. AT&T rose 2.9% after adjusted earnings topped estimates. CME Group added 5% on better-than-expected second-quarter results.
Pegasystems Q2 Earnings Miss Estimates Despite Revenue Growth
Pegasystems reported second-quarter 2026 non-GAAP earnings of 35 cents per share, missing the Zacks Consensus Estimate by 18.61% while revenues rose 9.4% year over year to $420.72 million, also missing the consensus mark by 1.84%. Pega Cloud annual contract value rose 22% year over year, and total annual contract value increased 7%, or 8% in constant currency. Pega Cloud revenues climbed 28% to $213.93 million, representing 51% of quarterly revenues, up from 43% a year earlier. Total backlog grew 10% to $2.02 billion as of June 30, 2026, with Pega Cloud backlog rising 18% to $1.56 billion and accounting for 77% of total backlog. Management warned that unprecedented changes in the AI market prompted clients to delay purchasing decisions, slowing annual contract value growth in the first half and potentially pressuring growth for the rest of the year.
Super Micro Computer surges 17% premarket on strong preliminary results
Super Micro Computer shares surged about 17% in premarket trading after the server maker reported preliminary fourth-quarter results with much stronger profitability than expected, offsetting revenue near the low end of guidance. The positive sentiment spilled over to server peers Dell Technologies and Hewlett Packard Enterprise, both up more than 4%. Pegasystems tumbled more than 14% after second-quarter adjusted earnings of 35 cents per share missed the 43-cent FactSet consensus. Nuclear reactor suppliers Oklo and X-Energy rose after a Bloomberg report that they are joining a Trump administration effort to speed nuclear power plant development for AI data centers, with X-Energy up 4% and Oklo higher by more than 3.5%. Rocket Lab gained 4% after winning a $266 million U.S. Air Force contract for 12 suborbital vehicle launches expected by the end of 2028. Cal-Maine Foods dropped more than 4.5% after reporting a surprise fiscal fourth-quarter loss of 76 cents per share versus expectations for an 8-cent profit, citing historically low inflation-adjusted egg prices. GE Vernova declined more than 7% despite beating second-quarter revenue and raising full-year guidance, with CEO Scott Strazik highlighting a $176 billion backlog. AT&T rose 3% after adjusted earnings of 65 cents per share topped the 59-cent consensus, while Philip Morris International slipped 0.5% on a weaker-than-expected third-quarter earnings forecast of $2.20 to $2.25 per share, below the $2.42 estimate. CME Group added 1% after reporting second-quarter earnings and revenue above expectations and noting its best first half of a year ever.
Workflow Automation Market to Reach $64.88 Billion by 2035
The global workflow automation market is projected to grow from $24.81 billion in 2025 to $64.88 billion by 2035, at a compound annual growth rate of 10.09%. Cloud-based platforms and generative AI are driving expansion, with the cloud deployment model expected to achieve the highest CAGR of 15.22% during the forecast period. In 2025, the software segment held a 68% market share, while large enterprises accounted for 69% of revenue. North America led with 37% of global revenue, and the BFSI sector was the largest end-use segment at 26%. Key players include Oracle, IBM, Software AG, Appian, and Pegasystems, which recently launched AI-driven dispute resolution tools.
Cloud & Digital Infrastructure › Horizontal SaaS ▲Demand
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Demand
Artificial Intelligence › AI Applications & Copilots ▲Demand
PEGA · Technology · Positive Pegasystems recently launched AI-driven dispute resolution tools, a product development that strengthens its competitive position.
APPN · Demand · Positive Market growth forecast indicates rising demand for workflow automation software, benefiting Appian as a key player.
IBM · Demand · Positive Market growth forecast indicates rising demand for workflow automation software, benefiting IBM as a key player.
ORCL · Demand · Positive Market growth forecast indicates rising demand for workflow automation software, benefiting Oracle as a key player.
UiPath Launches Maestro Case to Tackle Complex Enterprise Workflows
UiPath has introduced Maestro Case, a new capability aimed at helping enterprises manage complex, non-linear workflows that involve people, systems, and AI. The tool treats each case as an evolving workflow, carrying data and context across stages while blending automation with human oversight, targeting fragmented processes often handled through emails and spreadsheets. The move positions UiPath more directly against ServiceNow and Pegasystems in workflow orchestration and case management, with its AI-led approach potentially offering differentiation. UiPath stock has fallen 39% year to date, and it trades at a forward price-to-earnings ratio of 11.91, below the industry average of 24.48, while the Zacks Consensus Estimate for fiscal 2027 earnings has risen over the past 30 days.
Automation software stocks fall 19.1% on average after Q1 earnings despite revenue beats
Automation software stocks tracked by this publication fell an average of 19.1% since their latest earnings results, even as the group's revenues beat analysts' consensus estimates by 1.5% and next-quarter revenue guidance was in line. UiPath reported revenues of $418.4 million, up 17.3% year on year and exceeding expectations by 5.2%, but its full-year revenue guidance only slightly topped estimates and it significantly missed billings estimates, sending its stock down 14%. SoundHound AI posted the fastest revenue growth among peers at 51.7% year on year to $44.2 million, beating estimates by 3.4%, yet its stock dropped 35.6%. Pegasystems recorded the weakest performance with revenues of $430 million, down 9.6% year on year and missing estimates by 7.3%, leading to a 25.8% stock decline. ServiceNow's revenues rose 22.1% year on year to $3.77 billion, beating estimates by 0.6%, but its stock fell 12.8%. Microsoft's revenues grew 18.3% year on year to $82.89 billion, topping estimates by 1.7%, and its stock declined 16.3%.
Pegasystems Completes Subscription Transition, Analysts See 87% Upside
Pegasystems has completed its transition to a subscription-based model, with D.A. Davidson analyst Lucky Schreiner reiterating a Buy rating and a $55 price target that implies an 87% upside from current levels. The company reported that Pega Cloud annual contract value rose from 16% in the first quarter of 2024 to 29% in 2026, driving improved profitability and free cash flow that now exceeds half a billion dollars annually. Management plans to expand recurring revenue by selling more to existing customers, winning new clients through its Blueprint AI platform, and growing its cloud business, with overall sales up 29% year over year.
Pegasystems Launches Solution Designer Initiative to Streamline Enterprise AI Delivery
Pegasystems launched the Solution Designer Initiative to bridge the divide between business intent and technical execution. Building on the Pega Blueprint methodology, the program equips practitioners with skills to translate complex business goals into production-ready designs using Pega Blueprint AI. The initiative provides free skill-based credentials through Pega Academy, hands-on Blueprint Delivery workshops, and access to a global expert community. Early adopters have reported faster discovery phases, reduced project rework, and quicker time-to-market for mission-critical applications.
UiPath Falls as Agentic Automation Push Faces ARR Growth Test
UiPath shares declined 1.07% to close at $10.15 despite the launch of Maestro Case, an AI-native tool for coordinating agents, robots, and people in complex enterprise workflows. Trading volume reached 51.8 million shares, about 47% above the three-month average of 33.6 million. The broader market also fell, with the S&P 500 down 0.37% and the Nasdaq Composite dropping 1.32%. Peer Pegasystems closed 2.36% lower at $29.38, highlighting continued pressure on automation names. Investors remain focused on whether UiPath's agentic automation push will translate into stronger annual recurring revenue growth, retention, and customer expansion in upcoming earnings.
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