Quarterly ResultJul 21, 2026, 04:12 PM
Pega Q2 2026: ACV +7%, Cash Flow >$285M H1; GAAP Net Income -56%
AI Summary
Pegasystems Inc. announced its Q2 2026 financial results, reporting strong cash flow generation with both cash flow from operations and free cash flow exceeding $285 million in the first half of 2026. Pega Cloud Annual Contract Value (ACV) increased by 22% year-over-year, contributing to a total ACV growth of 7% (8% in constant currency). However, GAAP net income for the quarter decreased by 56% to $13.3 million, and the company noted that unprecedented changes in the AI market led clients to delay purchasing decisions, significantly slowing ACV growth.
Key Highlights
- Pega Cloud ACV increased 22% year-over-year.
- Total ACV grew 7% year-over-year (8% in constant currency).
- Cash flow from operations exceeded $285M in H1 2026.
- Free cash flow exceeded $285M in H1 2026.
- Q2 2026 GAAP Net Income was $13.3M, down 56% YoY.
- Q2 2026 Non-GAAP Net Income was $59.5M, up 19% YoY.
- Q2 2026 Total Revenue was $420.7M, up 9% YoY.
- Total backlog increased 10% to $2.019B.
Price Impact
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