Pegasystems Inc. (PEGA) experienced a significant after-hours decline of 5.88% on Tuesday, following the release of its fourth-quarter financial results and 2026 guidance.
The company reported quarterly adjusted earnings of $0.76 per share, surpassing the IBES estimate of $0.73. Revenue for the quarter reached $504.3 million, also exceeding analyst expectations of $494.3 million. For the full year 2026, Pegasystems issued guidance projecting adjusted earnings per share of $2.75 and revenue of $2 billion, both above current FactSet consensus estimates.
Despite these positive results, the stock sold off in after-hours trading. The decline appears linked to broader investor concerns about the impact of artificial intelligence on the software sector. Analysis published earlier in the day highlighted that Robotic Process Automation (RPA) providers like Pegasystems face potential disruption from AI agents, which could render traditional RPA solutions obsolete by performing tasks autonomously through APIs rather than mimicking human screen interactions.