Pegasystems Inc. (PEGA) experienced a significant 24-hour plunge of 6.93% in post-market trading on Tuesday, a sharp decline that followed the company's release of its fourth-quarter financial results.
Despite reporting quarterly adjusted earnings of $0.76 per share, surpassing the IBES estimate of $0.73, and revenue of $504.3 million, which also exceeded analyst expectations, the stock sold off. For the full year 2026, the company issued guidance projecting adjusted earnings per share of $2.75 and revenue of $2 billion, both above current consensus estimates.
The decline appears directly linked to broader investor concerns about the impact of artificial intelligence on the software sector. Analysis highlights 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. Market commentary categorizes such legacy RPA tools as facing "AI obsolescence" in the current technological shift.