As of July 2026, the Pegasus spyware, developed by Israeli firm NSO Group, has seen a dramatic decline in its market viability. Following a series of international sanctions and legal challenges, the company's flagship product has lost key clients and revenue streams. Reports indicate that NSO Group's valuation has plummeted, and the spyware is no longer the dominant surveillance tool it once was.
The U.S. Department of Commerce added NSO Group to its Entity List in November 2021, restricting its access to American technology. Subsequent investigations by media outlets like The Guardian and Amnesty International revealed widespread misuse of Pegasus against journalists, activists, and politicians. By 2026, multiple governments have canceled contracts, citing ethical concerns and reputational risks.
NSO Group has attempted to pivot to cybersecurity services, but the damage to its brand has been severe. The company's financial reports for 2025 showed a 70% drop in revenue compared to 2020. Industry analysts predict that Pegasus may become obsolete as open-source alternatives and stricter regulations emerge.
