Pegasystems Q2 revenue rises 9% to $420.7 million; GAAP profit falls 56%
Pegasystems reported second-quarter 2026 revenue of $420.7 million, up 9% from a year earlier, while GAAP net income fell 56% to $13.3 million. The company said clients delayed purchasing decisions amid AI market changes, so ACV growth slowed significantly in the first half and may keep weighing on ACV growth and cash flow for the rest of 2026.
Key points
- Q2 2026 total revenue was $420.7 million, up 9% from $384.5 million; first-half revenue was $850.7 million, down 1%.
- Q2 GAAP diluted EPS was $0.08 versus $0.17; non-GAAP diluted EPS was $0.35 versus $0.28.
- Annual contract value (ACV) reached $1.62 billion at June 30, 2026, up 7% (8% in constant currency); Pega Cloud ACV rose 22%.
- First-half free cash flow was $288.3 million versus $286.5 million, but management warned cash flow may be adversely affected for the rest of the year.
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 1:05 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on July 21, 2026.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.