Pegasystems Stock Drops to 52-Week Low After Q2 Revenue and EPS Miss

Management said rapid customer shifts to AI-native alternatives have delayed purchases and squeezed near-term results despite growth in cloud contracts.

Overview

Shares plunged about 16% to a 52-week low near $25 after Pegasystems reported Q2 revenue of $420.7 million and adjusted EPS of $0.35, both below analyst expectations.
The company said weaker demand stemmed from clients pausing purchases while they evaluate emerging AI-native solutions, a reason management tied directly to the shortfall.
This is the second consecutive quarter that Pegasystems missed Wall Street estimates, increasing investor concern about short-term execution.
Operational metrics showed contrast with the headline miss: overall annual contract value rose 7% year over year and Pega Cloud ACV grew 22%, and gross margin remained near 74.8%.
The stock has fallen about 48% year to date and some third-party measures flag the shares as deeply discounted, a signal that could attract value-focused buyers but also reflects elevated near-term risk for customers and employees.