Shares of Pegasystems fell after the company reported second-quarter results below Wall Street expectations and said that its annual contract value growth rate had slowed.
The stock fell 13% to $26.91 in after-hours trading on Tuesday. Shares closed down 2.4% at $30.94, and have fallen 48% this year.
The software company on Tuesday reported 7% growth in annual contact value. It said that its AVC growth rate during the first half of the year was substantially slower than the same period a year earlier.
"Unprecedented changes in the AI market caused clients to delay their purchasing decisions," the company said Tuesday. It said the same factors may continue to impact ACV growth and cash flow generation for the rest of the year.
Pegasystems reported a profit of $13.3 million, or 8 cents a share, compared with a profit of $30.1 million, or 17 cents a share, a year earlier.
Stripping out certain one-time items, the company reported adjusted earnings of 35 cents a share. Analysts polled by FactSet were expecting 43 cents a share.
Revenue rose to $420.7 million, up from $384.5 million a year prior. Analysts were expecting $427.4 million in revenue.
Write to Elias Schisgall at elias.schisgall@wsj.com
(END) Dow Jones Newswires
July 21, 2026 18:08 ET (22:08 GMT)
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