Pegasystems outlines $700M+ 2028 free cash flow target while highlighting no per token costs for ai agents (NASDAQ:PEGA)

Pegasystems (PEGA) Q2 2026 earnings call: AI token-cost reset, longer deal cycles, ACV growth, free cash flow and buybacks—get key takeaways now.

Pegasystems outlines $700M+ 2028 free cash flow target while highlighting no per token costs for ai agents (NASDAQ:PEGA) | Seeking Alpha

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Earnings Call Insights: Pegasystems (PEGA) Q2 2026

Management View

Alan Trefler framed the quarter around what he called a market reset in AI economics, saying, "what was once available for free or for all-you-can-eat licensing is priced now by token use with

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Quick Insights

How is Pegasystems responding to AI cost uncertainty in the enterprise market?

Pega offers AI agents with no per token costs at runtime and heavy AI use at design time to address shifting AI pricing dynamics and client concerns about token-based costs.

What risks and challenges are affecting Pegasystems' near-term performance and outlook?

Risks include elongated decision cycles from client AI confusion, execution issues with go-to-market changes, slower first-half growth, and difficulty predicting duration of weaker IT spending; first-half ACV shortfall puts free cash flow targets at risk.

How is Pegasystems' growth strategy and capital allocation evolving amid market disruption?

Pega is focusing on new customer acquisition, product improvement (Blueprint, Infinity Studio), cost/discipline, and substantial share repurchases, with flexible capital allocation aligned to market conditions.

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