PEGA

A month has gone by since the last earnings report for Microsoft (MSFT). Shares have added about 12% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Microsoft due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Microsoft Corporation before we dive into how investors and analysts have reacted as of late. Microsoft reported fourth-quarter fiscal 2026 earnings of $4.74 per share on a non-GAAP basis (excluding OpenAI investment impacts), which increased 23% on a year-over-year basis (up 23% in constant currency). The figure beat the Zacks Consensus Estimate by 12.59%. On a GAAP basis, earnings per share were $4.81, up 32% year over year.Revenues of $90 billion increased 18% year over year and beat the Zacks Consensus Estimate by 2.93%. At cc, revenues grew 17% year over year, reflecting continued strength in cloud and AI demand.Results for the quarter included several discrete items relative to the guidance Microsoft provided on April 29, 2026, which together added 27 cents to earnings per share. These included a $3.2 billion gain tied to Microsoft's investment in Anthropic and lower-than-expected costs associated with the company's first-ever Voluntary Retirement Program, partially offset by severance expense and impairment charges in the Xbox business.Microsoft Cloud revenues totaled $59.3 billion, up 27% year over year. Commercial remaining performance obligation reached $678 billion, up 84% year over year, with sequential growth driven largely by commitments from customers other than AI model developers. Productivity & Business ProcessesThe Productivity & Business Processes segment generated $37.8 billion in revenues, which grew 14% year over year (14% in cc).Microsoft 365 Commercial cloud revenues increased 14% on a reported basis, or 16% when adjusted for a prior-year comparable that had benefited from two points of in-period revenue recognition.Microsoft 365 Consumer cloud revenues rose 24% (22% in cc). LinkedIn revenues increased 12% (10% in cc). Dynamics 365 revenues grew 13% (12% in cc).Operating income for the segment rose to $21.9 billion from $19 billion a year earlier, representing an increase of about 15%.Intelligent CloudThe Intelligent Cloud segment contributed $39.3 billion in revenues, up 32% year over year (31% in cc).Azure and other cloud services revenues surged 43% year over year, with growth accelerating from the prior quarter on continued demand across workloads.Operating income for the segment increased to $16 billion from $12.1 billion a year earlier, up roughly 31%.More Personal ComputingThe More Personal Computing segment generated $12.9 billion in revenues, down 4% year over year (down 5% in cc), pressured by weaker hardware and gaming content revenues, partly offset by growth in search advertising.Windows OEM and Devices revenues declined 7%. Xbox content and services revenues fell 10%, while Search advertising revenues, excluding traffic acquisition costs, rose 10% (9% in cc).Operating income for the segment declined to $2.7 billion from $3.2 billion a year earlier, down about 14%, reflecting severance and impairment charges tied to the Xbox business. Microsoft continued expanding its AI and cloud infrastructure during the quarter, adding new data center capacity across multiple continents to support growing demand.The company disclosed plans to extend the estimated useful life of its data center and office buildings to 25 years from 15 years starting in fiscal 2027, a change that will affect future depreciation and lease accounting. More future data center capacity is also expected to be structured as operating leases rather than finance leases going forward.Microsoft 365 Copilot paid seats surpassed 30 million, with net seat additions more than doubling on a sequential basis during the quarter.On the leadership side, Microsoft named a LinkedIn executive to lead the professional networking business going forward. The company also introduced a new, more cost-efficient AI coding model during the quarter and lowered Xbox Game Pass subscription prices.Management indicated it is resetting decisions across Xbox content, platform and operations, with an expectation for the gaming business to return to growth in fiscal 2027.Microsoft also highlighted continued investment in AI-driven cybersecurity capabilities, describing a multi-model, agentic approach to threat detection and response that combines smaller, efficient models for the bulk of routine tasks with larger frontier models for more complex cases. Gross margin reached $60.5 billion, up about 15% year over year.Total operating expenses increased to $19.9 billion from $18.1 billion, up roughly 10%, driven by continued investment in research and development, AI talent and data. Research and development expenses were $10 billion, sales and marketing were $7.6 billion, and general and administrative expenses were $2.3 billion.Operating income increased 18% year over year (18% in cc) to $40.6 billion. Net income reached $35.8 billion, up 31% on a GAAP basis; on a non-GAAP basis excluding OpenAI-related impacts, net income was $35.3 billion, up 22% (22% in cc).Other income and expense, net, was a positive $3.4 billion in the quarter, compared with a negative $1.7 billion a year earlier, aided by net gains on investments and derivatives. Cash paid for additions to property and equipment was $35.8 billion in the quarter. Including finance leases, total capital expenditures and finance lease additions rose sharply year over year as the company continued to build out AI and cloud capacity.Cash flow from operations totaled $55.4 billion, up about 30% year over year, driven by strong cloud billings and collections.As of June 30, 2026, Microsoft maintained total cash, cash equivalents and short-term investments of $76.8 billion compared with $94.6 billion a year earlier. Long-term debt (including current portion) was $31.1 billion.Microsoft returned $10.2 billion to shareholders through dividends and share repurchases during the fiscal fourth quarter. The fiscal fourth quarter reflected net gains from investments in OpenAI of $480 million, adding 7 cents to earnings per share. This compares with the fourth quarter of fiscal 2025, when net losses from OpenAI investments decreased net income and earnings per share by $1.575 billion and 21 cents, respectively.These OpenAI-related impacts have historically created volatility in reported GAAP results, leading the company to provide non-GAAP measures excluding these effects to help investors better understand operational performance. For the first quarter of fiscal 2027, Microsoft expects total company revenues between $89.85 billion and $90.95 billion, suggesting growth of roughly 16% to 17%.The Intelligent Cloud segment is expected to generate revenues between $40.95 billion and $41.25 billion. The Productivity and Business Processes segment is expected to generate revenues between $36.7 billion and $37.0 billion.Foreign currency is expected to reduce total revenue growth by less than 1 point in the first quarter. Excluding any impact from OpenAI investments, other income and expense is expected to be roughly negative $100 million, as interest income is more than offset by interest expense, including payments tied to data center finance leases. The effective tax rate for the quarter is expected to be approximately 20%.Capital expenditures are expected to exceed $50 billion in the first quarter of fiscal 2027, reflecting both continued infrastructure investment and the impact of the lease reclassification tied to the useful-life change for data centers and office buildings. For fiscal 2027, Microsoft expects capital expenditures of roughly $175 billion under the updated accounting treatment, while underlying investment levels for calendar 2026 remain unchanged from prior guidance. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Microsoft has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Microsoft has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Microsoft is part of the Zacks Computer - Software industry. Over the past month, Pegasystems (PEGA), a stock from the same industry, has gained 19.5%. The company reported its results for the quarter ended June 2026 more than a month ago. Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago. For the current quarter, Pegasystems is expected to post earnings of $0.48 per share, indicating a change of +60% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Pegasystems has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Manhattan Associates (MANH). Shares have added about 5.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Manhattan Associates due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. Manhattan Associates reported second-quarter 2026 non-GAAP adjusted earnings of $1.39 per share, beating the Zacks Consensus Estimate by 6.11% and increasing 6.1% year over year.Revenues beat the consensus mark by 3.6% and climbed 9.3% year over year to $297.8 million. Management reported better-than-expected revenues and profitability, accelerating cloud growth and a sharp increase in remaining performance obligations.RPO increased to $2.47 billion as of June 30, 2026, compared to $2.35 billion as of March 31, 2026, representing 23% growth year over year. Cloud subscription revenues surged 26.2% year over year to $126.7 million. Software license revenues rose 25.9% year over year to $1.9 million, reflecting stronger deal activity within a still small revenue base. Maintenance revenues slipped 12.9% year over year to $30.5 million as customers continued migrating to cloud-native deployments. Services revenues grew 3.2% year over year to $133.0 million. Hardware revenues declined 14.4% year over year to $5.6 million.On a geographic basis, Americas revenues grew 9.9% year over year to $227 million. EMEA revenues increased 5.9% year over year to $55.4 million. APAC revenues rose 14% year over year to $15.4 million. GAAP total costs and expenses rose 16.6% year over year to $231.6 million, driven in part by an $8.3 million restructuring charge tied to the June headcount reduction. GAAP operating income declined 10.2% year over year to $66.2 million. Non-GAAP adjusted operating income increased 2.7% year over year to $103.9 million.GAAP net income declined 11.3% year over year to $50.4 million while GAAP EPS fell 8.6% year over year to 85 cents, reflecting the restructuring expense and elevated equity-based compensation costs relative to the year-ago period. Non-GAAP adjusted EPS grew 6.1% year over year to $1.39. Cash flow from operations grew 22.6% year over year to $90.7 million. Days Sales Outstanding improved to 67 days at June 30, 2026 from 72 days at March 31, 2026. Cash totaled $186.1 million at June 30, 2026, down 17.7% from $226.1 million at March 31, 2026, largely reflecting continued share repurchase activity.Capital expenditures were $1 million in the second quarter of 2026, down 74.7% year over year from $4 million in the second quarter of 2025. Manhattan Associates ended the quarter with no debt on its balance sheet.During the three months ended June 30, 2026, the company repurchased approximately 874,029 shares for a total of $125.0 million. Over the six months ended June 30, 2026, total repurchases reached 1,917,341 shares for $275.0 million. Approximately $225 million remained under the existing March 2026 repurchase authority as of quarter end. For full-year 2026, Manhattan Associates raised guidance for total revenues to a range of $1.16 billion to $1.166 billion, implying 7-8% growth. GAAP operating margin guidance is 24.2% to 24.4% while non-GAAP adjusted operating margin is expected at 35-35.2%. GAAP EPS is projected at $3.59-$3.65 while non-GAAP adjusted EPS is guided at $5.44-$5.5, representing 8-9% growth.Full-year 2026 cloud revenue guidance was raised, with the midpoint increasing to $505.5 million, implying approximately 24% growth. It turns out, estimates review have trended upward during the past month. Currently, Manhattan Associates has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Manhattan Associates has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Manhattan Associates belongs to the Zacks Computer - Software industry. Another stock from the same industry, Pegasystems (PEGA), has gained 9.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago. Pegasystems is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +60%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Pegasystems. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Manhattan Associates, Inc. (MANH) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

UiPath (PATH) surged 8% and Pegasystems (PEGA) gained 5% Thursday despite neither company reporting earnings, driven entirely by sector momentum. Salesforce (CRM) beat revenue, raised full-year guidance, and launched ClaudeForce with Anthropic, jumping 10% and lifting the software ETF IGV 3%. C3.ai reports September 2 and UiPath reports September 3, giving investors the first hard earnings test of whether this sector re-rating survives. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Software's post-earnings bid is broadening past the names that actually reported. UiPath (NYSE:PATH) stock is up 9% to $18.20 in Thursday morning trading, and Pegasystems (NASDAQ:PEGA) stock is up 4% to $35.29. Neither company reported this week, which makes the size of both moves the interesting part. There's no verified company-specific catalyst behind UiPath stock today. UiPath did issue a Thursday morning press release announcing that CEO Daniel Dines has published a book on orchestrating AI agents, automation, and people inside the enterprise, but a book announcement carries too little weight to explain a move of this size. The mechanism that does hold up is sector momentum from Wednesday's software earnings, plus an oversold-name bounce in the beaten-down agentic-AI cohort. The broader software complex is riding the same wave. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) is up 3% to $105.19, while the Invesco QQQ Trust (NASDAQ:QQQ) is up 1% to $718.40, a much tamer move that pins this rally to software rather than large-cap tech in general. Salesforce (NYSE:CRM) reported fiscal Q2 2027 after Wednesday's close, beat on revenue, raised its full-year guide, and announced an expanded partnership with Anthropic tied to a new product the two are calling ClaudeForce. Salesforce stock is up 10% to $226.80 on the results, and that report is the origin of Thursday's software bid. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. The read-through matters for automation and agentic-AI vendors because Salesforce management framed enterprise AI as an orchestration problem sitting on top of trusted data, workflows, business rules, and governance. That's essentially the pitch UiPath and Pegasystems have been making to their own customers, which is why the bid is spilling into non-reporters that fit the same theme. When the largest enterprise software vendor validates that framing on an earnings call and raises guidance behind it, the market tends to reward every name that maps to the same idea. The common thread across today's software winners is that they are beaten-down agentic-AI names catching a lift on someone else's results. Also, C3.ai (NYSE:AI) stock is up 5% to $10.23, another oversold enterprise-AI name that did not report and had no fresh company-specific news of its own on the wires this morning. Underlying setups vary materially by name. UiPath stock was up 44% over the past month through Wednesday's close, so Thursday's session is compounding an existing recovery in a name that had already gone from left-for-dead to one of the sharper software rebounds of the summer. Pegasystems stock was down 43% year to date through Wednesday's close, so today's bid there looks more like an oversold reaction to a friendlier sector narrative than a fundamental re-rating driven by anything the company itself said or did. A one-year picture reinforces the divergence. UiPath stock was up 55% over the trailing year through Wednesday's close, while Pegasystems stock was down 35% over the same window. Both are up meaningfully Thursday for reasons that live outside their own fundamentals, which is what makes today a sector re-rating rather than a stock-picker's session. Positioning ahead of UiPath's September earnings report is a plausible contributing factor rather than a confirmed cause. Dines has been telegraphing UiPath's positioning in agentic AI for months, writing in his new book that the real project "is producing a governed description of how the business actually works — the map — and the machinery that executes stable parts exactly — the rails." That framing dovetails cleanly with what Salesforce told the market on Wednesday. Investors can watch for whether today's gains hold into Thursday's close and whether sell-side desks publish read-through notes lifting price targets on UiPath and Pegasystems on the back of the Salesforce results. A follow-through session in the IGV ETF would confirm this is a genuine sector re-rating rather than a one-day chase. UiPath is scheduled to report fiscal Q2 2027 results after the close on September 3, which is where the first fundamental confirmation of today's move will arrive. Pegasystems reports in late October, giving that name a longer runway before its own catalyst arrives. C3.ai reports on September 2, and its response will be the cleanest early test of whether this rally survives a real earnings check. A cautious position size may be warranted given that Thursday's move rests on someone else's numbers. Rallies built on read-through can unwind on read-through when the next earnings check arrives, and investors sizing their exposure into next week's PATH and AI reports should weigh the strong monthly momentum already in the chart against the absence of a company-specific catalyst today. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and UiPath didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

It has been about a month since the last earnings report for Cadence Design Systems (CDNS). Shares have lost about 3.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cadence due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Cadence Design Systems, Inc. before we dive into how investors and analysts have reacted as of late. Cadence delivered strong second-quarter 2026 results, driven by broad-based demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI. Non-GAAP earnings per share (EPS) of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year and topped management’s guided range of $2.02 to $2.08. Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. All the product groups witnessed double-digit growth. On the earnings call, the company cited agentic AI as a durable tailwind. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles, thereby expanding the addressable market. Management highlighted “strong early traction” for its AI Super-Agent portfolio.A standout metric was a record backlog of $8.1 billion, driven by strong bookings. Strong quarterly performance and accelerating AI demand led to a raise in its 2026 revenue outlook.Cadence raised its full-year 2026 revenue outlook to a band of $6.26-$6.34 billion, compared with the earlier guided range of $6.125-$6.225 billion. Non-GAAP EPS for 2026 is now expected to be between $8.05 and $8.15, compared with the earlier guided range of $7.85 to $7.95. Product & Maintenance revenues (90.3% of total revenues) of $1.431 billion rose 22.3% year over year. Services revenues (9.7%) of $154 million jumped 46.7% year over year. Recurring revenues comprised 78% of total revenues, while the remainder was upfront revenues. The Americas contributed 43% of revenues, while China accounted for 15%, Other Asia 20%, Europe, Middle East and Africa 15% and Japan 7%, pointing to diversified demand across geographies.Product-wise, Core EDA, Intellectual Property (“IP”) and Systems Design & Analysis accounted for 68%, 15% and 17% of total revenues, respectively.The System Design & Analysis business, up 37% in the second quarter, is gaining from higher demand for Allegro X AI, 3D-IC and BETA CAE solutions. Management noted that the integration of Hexagon's D&E business was “progressing well” with some deals closed with key clients in the quarter.Core EDA business, which includes Custom IC, Digital IC and Functional Verification, experienced 18% year-over-year growth. The demand for new hardware systems continued to gain traction, driven by AI/HPC customers. Apart from hardware, demand for digital full-flow solutions was steady, with expanded adoption of the Tempus and Certus sign-off tools. It added 12 new logos in the reported quarter as well as expanded business with several AI clients. The IP business was up 40% year over year in the second quarter. The company is witnessing higher demand for its Star IP portfolio across AI and HPC applications, including HBM, PCIe, UCIe and LPDDR6. Non-GAAP gross margin expanded 100 basis points (bps) to 88.2%. Total non-GAAP costs and expenses increased 18.4% year over year to $863 million.However, non-GAAP operating margin expanded 270 bps on a year-over-year basis to 45.5%. As of June 30, 2026, Cash and cash equivalents stood at $1.44 billion compared with $1.407 billion as of March 31, 2026. Long-term debt was $2.482 billion, compared with $2.481 billion as of March 31, 2026. Cadence generated an operating cash flow of $635 million in the reported quarter compared with the prior quarter’s $356 million. Free cash flow was $582 million compared with $307 million in the previous quarter.The company repurchased its shares worth $200 million in the second quarter. Non-GAAP operating margin for 2026 is now forecasted to be in the band of 43.75% to 44.75%, compared with the range of 43.5% to 44.5% guided earlier. Also, operating cash flow is expected to be $2 billion compared with $1.875 billion to $1.975 billion projected earlier. The company expects to utilize at least 50% of its free cash flow to repurchase shares in 2026.For the third quarter of 2026, revenues are estimated to be $1.595-$1.625 billion. The company reported sales of $1.55 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.01 and $2.07 compared with $1.92 reported in the year-ago quarter. Non-GAAP operating margin is estimated to be between 43.5% and 44.5% in the third quarter. It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 6.85% due to these changes. At this time, Cadence has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cadence has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Cadence belongs to the Zacks Computer - Software industry. Another stock from the same industry, Pegasystems (PEGA), has gained 15.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Pegasystems reported revenues of $420.72 million in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $0.35 for the same period compares with $0.28 a year ago. Pegasystems is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +60%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Pegasystems has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking back on automation software stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Pegasystems (NASDAQ:PEGA) and its peers. The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software. The 5 automation software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 3.8% above. Luckily, automation software stocks have performed well with share prices up 20% on average since the latest earnings results. With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes. Pegasystems reported revenues of $420.7 million, up 9.4% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ billings estimates. "Pega Infinity™ 26 uniquely deploys the power of AI with predictable outcomes and predicable costs by applying agents at design time to optimize run-time token use,” said Alan Trefler, founder and CEO, Pega. Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 7.4% since reporting and currently trades at $33.24. Read our full report on Pegasystems here, it’s free. Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services. SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates. SoundHound AI achieved the biggest analyst estimate beat and fastest revenue growth of the whole group. The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $6.94. Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free. Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ:APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge. Appian reported revenues of $203.3 million, up 19.1% year on year, exceeding analysts’ expectations by 5.1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations. Interestingly, the stock is up 25.7% since the results and currently trades at $37.67. Read our full analysis of Appian’s results here. Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide. Microsoft reported revenues of $90.01 billion, up 17.7% year on year. This number surpassed analysts’ expectations by 2.6%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates. The stock is up 23.2% since reporting and currently trades at $481.14. Read our full, actionable report on Microsoft here, it’s free. Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security. ServiceNow reported revenues of $3.99 billion, up 24% year on year. This result beat analysts’ expectations by 1.6%. It was a very strong quarter as it also produced an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ annual recurring revenue estimates. The stock is up 35.9% since reporting and currently trades at $129.78. Read our full, actionable report on ServiceNow here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

It has been about a month since the last earnings report for Pegasystems (PEGA). Shares have added about 30.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pegasystems due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Pegasystems Inc. before we dive into how investors and analysts have reacted as of late. Pegasystems reported second-quarter 2026 non-GAAP earnings of 35 cents per share, missing the Zacks Consensus Estimate by 18.61%. Earnings rose 25% year over year. Revenues rose 9.4% year over year to $420.72 million but missed the consensus mark by 1.84%. The shortfalls came despite continued cloud momentum. Pega Cloud annual contract value rose 22% year over year, while total annual contract value increased 7% or 8% in constant currency.Backlog grew year over year, supporting longer-term revenue visibility. Total backlog increased 10% year over year to $2.02 billion as of June 30, 2026 or 11% in constant currency. Pega Cloud backlog rose 18% to $1.56 billion and accounted for 77% of total backlog, up from 72% a year earlier. Pega Cloud revenues climbed 28% year over year to $213.93 million and represented 51% of quarterly revenues, up from 43% a year earlier. Maintenance revenues declined 6% to $74.53 million.Together, subscription services revenues advanced 17% to $288.46 million. Subscription license revenues rose 2% to $82.03 million, taking total subscription revenues up 13% to $370.49 million. Consulting revenues declined 13% year over year to $50.23 million and accounted for 12% of total revenues compared with 15% in the prior-year quarter. The decline partly offset gains across the subscription business.Subscription revenues represented 88% of quarterly revenues, up from 85% a year earlier. The higher recurring-revenue mix supported the top-line increase, but higher operating costs and delayed client decisions limited the benefit to profitability. Total annual contract value (ACV) reached $1.62 billion at June 30, 2026, compared with $1.51 billion a year earlier. Pega Cloud ACV increased to $926.29 million from $761.05 million, highlighting the continued shift toward cloud contracts.However, management said unprecedented changes in the AI market prompted clients to delay purchasing decisions. The company added that ACV growth slowed in the first half and warned that these factors may continue to pressure growth for the rest of the year. Gross profit rose 13.7% year over year to $312.69 million. The gross margin expanded about 280 basis points to 74.3%, driven by revenue growth and a slight decline in total cost of revenues. Operating expenses increased 14.9% to $296.05 million. Selling and marketing expenses rose 12.4%, research and development expenses increased 6.8%, and general and administrative expenses jumped 37.6%.GAAP operating income slipped 3.7% year over year to $16.64 million. The operating margin contracted roughly 50 basis points to 4% as expense growth outpaced revenues. As of June 30, 2026, cash and cash equivalents and marketable securities totaled $361.9 million, down from $474 million as of March 31, 2026.For the first six months of 2026, cash provided by operating activities increased 2.7% year over year to $298.23 million. Free cash flow rose 0.6% to $288.26 million, even as the company cautioned that slower ACV growth could weigh on cash generation for the remainder of the year. In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -24.31% due to these changes. At this time, Pegasystems has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Pegasystems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Its operating margin is a fraction of the market's while its net margin sits above the market's, which is where the earnings comparison stops being about the business. UiPath (PATH) stock has climbed 52.4% over the trailing three months against 4.6% for the S&P 500, and trades at about $15.30 a share. On earnings it looks unremarkable, at 24.4 times against 23.8 for the market. That is the least informative comparison here. Its Earnings Multiple Is Not Measuring Its Operations UiPath runs a 6.0% operating margin against 18.4% for the S&P 500, and yet reports a net margin of 19.6% against the market's 13.1%. Earnings that large do not come out of an operating line that thin: the gap opens up below the operating line, and that is why the earnings multiple looks ordinary. Priced on sales, the premium is plain at 4.8 times against 3.3 for the index, on $1.7 billion of revenue over the trailing twelve months. On operating cash flow the premium is narrower, at 20.8 times against 15.6 for the index. The Sales Premium Is A Bet On Process Orchestration What the company sells has changed. It grew up on deterministic robots that repeat one task the same way every time; what it leads with now is process orchestration, software that sequences agents, automations, systems and people through a whole workflow. Maestro Case, in public preview, pushes that into exception-heavy work with no fixed path, and its UiPath for coding agents product targets what management says nearly every customer conversation surfaces: an automation backlog growing faster than customers can build and maintain. Revenue has grown at an average annual rate of 15.1% over the last three years against 5.9% for the S&P 500. Growth alongside margins earned in the operation is one of the things the Trefis High Quality Portfolio insists on in its holdings, and it is the second half of that pairing that is still missing here. Its Recurring Base Is Compounding Slower Than Its Revenue The counter is in the recurring line. Annual recurring revenue reached $1.901 billion in fiscal Q1 2027, up 12% year over year, while reported revenue grew 17.3%, and ARR rather than the reported line is the rate a subscription platform actually compounds at. Management's answer is that on a trailing twelve-month basis revenue growth is 15% against ARR's 12%. Asked to size the ARR coming from the AI products the case rests on, management said only that it would disclose product ARR periodically. The downside record is part of the counter: the stock fell 75% during the 2022 inflation shock against a 24% drop for the S&P 500, and remains about 65% below its pre-crisis high. What The September Report Has To Show UiPath reports fiscal Q2 2027 results on September 3. Two lines matter most: whether ARR growth closes on revenue growth, and whether GAAP operating income builds on the $28 million posted in fiscal Q1 2027, up from a $16 million operating loss a year earlier. Get both and the premium becomes a claim about the operation rather than the platform story. Miss both, with the operating margin still near 6.0%, and the multiple that made the stock look market-priced goes on measuring something other than the business. Rather than judge that on a single number, a scorecard that grades a company across five factors keeps the whole picture in front of you. One Contested Platform Bet Is A Narrow Way To Own Software Deciding on PATH means picking a side in an argument a single quarter's results will not close. The Trefis High Quality Portfolio takes the other route, holding a group of quality businesses rather than resolving a single company's debate. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Pegasystems stock is coming off a difficult stretch, with the share price down about 51% over the past five years, while current valuation checks point to something closer to a fair price than a clear bargain. The company now sits in an interesting spot where a Discounted Cash Flow (DCF) intrinsic value estimate suggests the shares are roughly in line with fundamentals, yet market based multiples still screen as undervalued. Over the last five years Pegasystems has declined about 51%, which means anyone looking at the stock today is assessing a business that the market has already marked down heavily. Recent recognition as a leader in AI platforms and expanded FedRAMP certified capabilities may support expectations for future workflow and AI related revenue. At the same time, the special cash dividend tied to litigation settlement highlights that legal and capital allocation decisions can still influence how investors think about value. Pegasystems scores 3 out of 6 on our valuation checks, which points to a mixed picture rather than a clear bargain or clearly expensive stock on the broader tests. The issue now is whether the current price fairly reflects Pegasystems' intrinsic value or if the apparent discount on some metrics leaves room for a more attractive entry point. Find out why Pegasystems' -40.6% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model estimates what Pegasystems is worth based on the cash the business is expected to generate for shareholders. Pegasystems has produced last twelve month free cash flow of about $500.5 million, and the 2 Stage Free Cash Flow to Equity model uses projections that assume cash flows gradually ease back rather than climb aggressively. On this basis, the model arrives at an estimated intrinsic value of about $31.18 per share. That figure sits just below the current share price, which implies the stock screens as roughly 0.5% overvalued on this intrinsic value view. The recent recognition of Pegasystems as a leader in AI platforms helps explain why the market is prepared to price the shares slightly above what the current cash flow profile alone would suggest. Overall, Pegasystems looks about fairly valued on a DCF basis, with the share price sitting very close to the model's intrinsic value estimate. Pegasystems is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Pegasystems. P/E is a useful cross check for Pegasystems because the company currently reports positive earnings that can be compared directly with the price you pay for each share. Pegasystems trades on a P/E of about 15.9x, which is roughly half the Software industry average of 31.0x and well below the peer group average of 35.0x. The Fair Ratio for the stock is 24.8x, which is the level suggested by its mix of growth prospects, margins, size and risk profile. That is materially above where the shares trade today. This gap indicates that the market is pricing Pegasystems at a sizeable discount to what this tailored P/E framework implies, even though the stock does not screen as a clear bargain on every other metric. On the P/E multiple alone, Pegasystems stock appears undervalued compared with both its peers and its own Fair Ratio benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Pegasystems valuation puzzle leaves off. They spell out the specific assumptions about Pegasystems' future growth, margins and earnings that would need to hold for the stock to be worth materially more or less than today's price, and they sit on Simply Wall St's Community page. Rather than focusing on a single multiple or model, each Narrative sets out the assumptions behind its view of fair value so you can later compare them with actual results. The community is split on Pegasystems, with one side seeing substantial upside if AI and cloud bets pay off and the other focused on competitive and execution risks. Bull case: 55% undervalued Read the full Bull Case to see why Pegasystems could be undervalued Bear case: 25% overvalued Read the full Bear Case to see why Pegasystems could be overvalued Do you think there's more to the story for Pegasystems? Head over to our Community to see what others are saying! Pegasystems now sits in a middle ground where the Discounted Cash Flow (DCF) intrinsic value estimate points to a share price that is close to fair, while the P/E multiple still signals undervalued territory relative to peers and its Fair Ratio. That mixed read suggests the stock is no longer a clear mispricing, yet the market may still be cautious about execution, competition in low code and AI, and how sustainably cash flows support equity holders. The key question from here is whether Pegasystems can convert its AI and workflow positioning into durable earnings that justify a higher multiple rather than a value trap discount. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEGA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Pegasystems (PEGA) is back in focus after its second quarter 2026 earnings and fresh product news, with investors weighing softer profitability, analyst downgrades, and a new AI platform rollout against ongoing share repurchases. See our latest analysis for Pegasystems. The earnings miss, slower annual contract value growth, analyst downgrades, and insider selling have all weighed on sentiment. Pegasystems' share price is now US$25.99 with a 1-year total shareholder return down 55.07% and 5-year total shareholder return down 61.60%, pointing to fading momentum despite the launch of Pega Infinity 26 and ongoing buybacks. If this AI driven reset in expectations has you reassessing your watchlist, it could be a good moment to broaden your search with 54 AI infrastructure stocks Bulls see Pegasystems as an AI platform on sale after a sharp reset in expectations, while bears focus on slowing annual contract value, earnings misses, and insider selling. Which side does the current valuation argue for next? The most followed valuation narrative currently places Pegasystems' fair value at $59.82, well above the last close of $25.99. This frames the recent reset in expectations in a very different light. Read the complete narrative. Want to understand why this narrative sees Pegasystems trading so far below its modeled value? The assumptions blend faster revenue, resilient margins, and a future earnings multiple that many investors reserve for high quality software leaders. Curious which specific growth and profitability paths need to line up for that fair value to hold? Result: Fair Value of $59.82 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Pegasystems narrative could be tested if volatility in term license revenue or weaker back office software demand disrupts the expected stability of recurring cloud income. Find out about the key risks to this Pegasystems narrative. If the mixed sentiment around Pegasystems has you on the fence, review the numbers now and shape your own view by checking the 5 key rewards. If Pegasystems has sharpened your thinking, do not stop there. Broaden your opportunity set now with focused screens that highlight different strengths across the market. Target potential mispricings by scanning 47 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their financial profile. Prioritize resilience by reviewing 82 resilient stocks with low risk scores that score well on stability so sudden shocks are less likely to catch you off guard. Spot future standouts early by combing through a screener containing 20 high quality undiscovered gems before the crowd starts paying attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEGA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Pegasystems recently reported its second-quarter 2026 results, with revenue rising to US$420.72 million while net income and earnings per share declined year over year, and management linked slower annual contract value growth to clients delaying software purchases amid rapid shifts in the AI market. At the same time, Pegasystems has been rolling out its new Pega Infinity 26 AI suite and completing a long-running share repurchase program, setting up a contrast between product investment and capital returns on one hand and near-term demand uncertainty on the other. We’ll now examine how client spending delays tied to AI uncertainty may affect Pegasystems’ previously optimistic investment narrative around recurring revenue. The future of work is here. Discover the 33 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. To own Pegasystems today, you have to believe its AI-heavy platform and growing subscription base can offset lumpier consulting revenue and recent contract softness. The sharp slowdown in annual contract value growth, tied to client AI uncertainty, directly challenges the near term recurring revenue catalyst and amplifies the key risk that larger deals take longer to close, which could keep earnings and cash generation bumpier than many shareholders might like. The launch of Pega Infinity 26 is central here, because it is meant to make AI adoption more predictable and cost transparent for clients at the very moment those clients are pausing deals. Its flat fee, “no AI token tax” model and agent orchestration tools aim to strengthen Pegasystems’ differentiation, but until hesitant customers restart spending, the benefits of this new suite may take time to show up in bookings and reported growth. Yet even if Infinity 26 ultimately gains traction, investors should be aware that rising competitive and technology pressures could still... Read the full narrative on Pegasystems (it's free!) Pegasystems' narrative projects $2.5 billion revenue and $447.5 million earnings by 2029. This requires 12.0% yearly revenue growth and roughly a $54 million earnings increase from $393.4 million today. Uncover how Pegasystems' forecasts yield a $59.82 fair value, a 130% upside to its current price. Some of the most optimistic analysts had expected revenue to reach about US$2.6 billion and earnings around US$533.0 million, yet the latest AI driven deal delays highlight how quickly those upbeat assumptions and the idea that Pegasystems could outrun larger cloud suite competitors might need to be revisited, reminding you that smart people can look at the same company and see very different futures. Explore 6 other fair value estimates on Pegasystems - why the stock might be worth over 3x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Pegasystems research is our analysis highlighting 5 key rewards that could impact your investment decision. Our free Pegasystems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Pegasystems' overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: Find 47 companies with promising cash flow potential yet trading below their fair value. We've uncovered the 7 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 29 best rare earth metal stocks of the very few that mine this essential strategic resource. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEGA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Pega Cloud ACV Growth: Increased by $165 million year-over-year, growing 22% as reported and in constant currency. Total ACV Growth: Grew 7% as reported and 8% in constant currency year-over-year. Free Cash Flow: Generated $288 million in the first half of 2026. Share Repurchases: Repurchased 9 million shares for over $360 million in the first half of 2026. Pega Cloud ACV as Percentage of Total ACV: Now 57% of total ACV. Warning! GuruFocus has detected 3 Warning Signs with OTLY. Is PEGA fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pegasystems Inc (NASDAQ:PEGA) reported a 22% year-over-year growth in Pega Cloud ACV, reflecting the continued expansion of their cloud business. The company introduced Infinity Studio, which, along with Pega Blueprint, creates a more complete AI-powered lifecycle for clients, enhancing design, build, and operational capabilities. Pegasystems Inc (NASDAQ:PEGA) generated $288 million in free cash flow in the first half of 2026, showcasing the strength of their subscription model. The company is committed to leveraging AI technology to improve operational efficiency and create additional operating leverage. Pegasystems Inc (NASDAQ:PEGA) has a strong pipeline and late-stage pipeline, indicating potential for future growth despite current market confusion. The company experienced a slower-than-expected start to the first half of 2026, with challenges in executing go-to-market changes and driving deeper client engagement. Market confusion around AI and software development has led to elongated decision cycles and buyer uncertainty, impacting sales. Total ACV growth was below expectations, with a 7% increase as reported and 8% in constant currency year-over-year. There is pressure on maintenance and subscription license ACV growth due to the shift towards Pega Cloud, which may continue to affect future periods. The company faces challenges in recovering from the first half shortfall, with a significant portion of net new ACV expected in the second half of the year. Q: Can you provide more clarity on the demand side and whether deals that were pushed from Q2 are starting to close? A: Alan Trefler, CEO: We are seeing movement, although there is still a lot of confusion in the market. Clients are trying to figure out how AI fits into their future. However, there is excellent engagement from customers, and our recent announcements have generated enthusiasm. While some deals are starting to move, the third quarter is generally a challenging time for turnaround. We are confident in our strategy and expect deals to unlock in the second half, but the timing remains uncertain. Q: How are you approaching investments to achieve the $700 million free cash flow target in a few years? A: Alan Trefler, CEO: We are committed to maintaining our Rule of 40 cash flow generation and will temper investments to avoid returning to a high-spend culture. Kenneth Stillwell, CFO: We are focusing on running a disciplined business, optimizing operations with AI, and improving efficiency across all financial areas. We aim to deliver shareholder value through strategic investments and cash flow generation. Q: How much of the current challenges are within your control, and how much is due to market conditions? A: Kenneth Stillwell, CFO: The AI disruption coincided with our efforts to expand into new logos and workflows, which required internal changes. We underestimated the need to manage this change, but we believe there is significant value to unlock even in a confused market. Much of the situation is within our control, and we are working to address it. Q: Why not adjust guidance given the challenging first half? A: Kenneth Stillwell, CFO: We avoid constant guidance adjustments due to the nature of our business cycle. While we have a lot of work to do in the second half, reguiding in an uncertain environment is not helpful. We initially planned for two-thirds of our business in the second half, and while making up the first-half gap is challenging, we are focused on achieving our original targets. Q: Can you provide more context on deal elongation and its impact on ACV growth? A: Kenneth Stillwell, CFO: We are not seeing deals go away, but rather elongation in the buying cycle. Clients are still engaging and interested in transformation, but the market dynamics have caused delays. The pipeline remains strong, and we are confident in our ability to convert opportunities as the market stabilizes. For the complete transcript of the earnings call, please refer to the full earnings call transcript.