Pega warns AI market shifts delay client deals despite 22% cloud growth, record cash flow

Filed July 21, 2026 · Period ending July 21, 2026 · ~2 min read

Key Changes

• high

  Management warns unprecedented AI market changes caused clients to delay purchasing decisions, slowing total ACV growth to 7% (from higher prior rates) and may continue to adversely affect ACV and cash flow for the rest of 2026.

  Exhibit 99.1 view on EDGAR →
• high

  Pega Cloud ACV grew 22% year-over-year, but total ACV reached only $1.62 billion at June 30, 2026, up 7% (8% constant currency), reflecting the client hesitation cited by management.

  Exhibit 99.1 view on EDGAR →
• high

  Q2 revenue rose 9% to $420.7 million, but first-half revenue declined 1% to $850.7 million; GAAP net income fell 56% in Q2 to $13.3 million ($0.08 per share) and 60% in the first half to $46.1 million ($0.26 per share).

  Exhibit 99.1 view on EDGAR →