Pegasystems slides after Q2 miss and slower ACV growth raises concern

Pegasystems (PEGA) is down 13.5% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to second-quarter results that missed Wall Street expectations on both revenue and adjusted earnings. More importantly, management said rapid changes in the AI market led some clients to delay purchasing decisions, slowing annual contract value growth and creating concern that bookings and cash generation could stay under pressure through the rest of 2026.

Details:

Pegasystems reported Q2 revenue of about $420.7 million and non-GAAP diluted EPS of $0.35, below consensus expectations of roughly $427.4 million and $0.43.

The company said clients delayed purchases because of unusual shifts in the AI market, and it warned that the slower ACV growth rate could continue to hurt performance for the rest of the year.

ACV rose 7% year over year to about $1.62 billion, which is positive but notably softer than the stronger growth investors had been watching in prior periods.

There were offsets: Pega Cloud ACV grew 22%, total revenue rose 9%, and first-half operating cash flow reached about $298 million, but those strengths were overshadowed by the earnings miss and the softer demand commentary.

Sources:

SEC, Pega, MarketBeat

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$PEGA Insider Trading Activity

$PEGA insiders have traded $PEGA stock on the open market 21 times in the past 6 months. Of those trades, 0 have been purchases and 21 have been sales.

Here’s a breakdown of recent trading of $PEGA stock by insiders over the last 6 months:

ALAN TREFLER (C.E.O. & Chairman) has made 0 purchases and 9 sales selling 119,672 shares for an estimated $5,773,453.
KENNETH STILLWELL (COO, CFO) has made 0 purchases and 3 sales selling 53,383 shares for an estimated $2,320,890.
RIFAT KERIM AKGONUL (Chief Product Officer) has made 0 purchases and 3 sales selling 19,633 shares for an estimated $806,084.
LEON TREFLER (Chief of Clients and Markets) sold 6,700 shares for an estimated $299,858
EFSTATHIOS A KOUNINIS (SVP, Chief Accounting Officer) has made 0 purchases and 5 sales selling 3,250 shares for an estimated $120,920.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

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$PEGA Hedge Fund Activity

We have seen 264 institutional investors add shares of $PEGA stock to their portfolio, and 199 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

MASSACHUSETTS FINANCIAL SERVICES CO /MA/ removed 2,551,094 shares (-51.8%) from their portfolio in Q1 2026, for an estimated $108,574,560
NORTH PEAK CAPITAL MANAGEMENT, LLC removed 2,400,065 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $102,146,766
MIRAE ASSET GLOBAL ETFS HOLDINGS LTD. removed 1,824,504 shares (-76.2%) from their portfolio in Q1 2026, for an estimated $77,650,890
CAPITAL RESEARCH GLOBAL INVESTORS removed 1,796,189 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $76,445,803
AQR CAPITAL MANAGEMENT LLC added 1,739,059 shares (+62.1%) to their portfolio in Q1 2026, for an estimated $74,014,351
BOSTON PARTNERS added 1,270,660 shares (+683.1%) to their portfolio in Q1 2026, for an estimated $54,079,289
COPELAND CAPITAL MANAGEMENT, LLC added 1,123,518 shares (+inf%) to their portfolio in Q1 2026, for an estimated $47,816,926

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$PEGA Government Contracts

We have seen $3,243,000 of award payments to $PEGA over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

PEGA SUPPORT FOR DISCONNECTED OPERATIONS (DISCOPS): $3,243,000

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard. You can access data on government contracts through the Quiver Quantitative API government contracts endpoint.

$PEGA Price Targets

Multiple analysts have issued price targets for $PEGA recently. We have seen 7 analysts offer price targets for $PEGA in the last 6 months, with a median target of $58.0.

Here are some recent targets:

Patrick Walravens from Citizens set a target price of $58.0 on 06/10/2026
Blair Abernethy from Rosenblatt set a target price of $58.0 on 06/10/2026
Lucky Schreiner from DA Davidson set a target price of $55.0 on 06/10/2026
Dan Ives from Wedbush set a target price of $60.0 on 04/23/2026
Rishi Jaluria from RBC Capital set a target price of $60.0 on 04/23/2026
Steven Enders from Citigroup set a target price of $71.0 on 04/23/2026
Raimo Lenschow from Barclays set a target price of $48.0 on 02/12/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.