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.
Pegasystems IncTotal ACV growth of 7% missed expectations, and sales cycles are elongating due to market confusion.