5 takeaways from the State of Software Delivery Q2 Pulse report

The 2026 State of Software Delivery Q2 Pulse report highlights the growing disparity between top-performing engineering teams and the rest, as AI-driven code generation increases but efficient code shipping remains challenging. Analyzing over 20 million CircleCI workflows, the report notes that while code production is up, elite teams are successfully navigating the complexities of software delivery by focusing on operational habits that enhance speed and reduce costs, such as maintaining a low Merge Efficiency Ratio (MER) and integrating fast feedback in development loops. These teams demonstrate significantly higher throughput, achieving up to 2,165 main-branch workflows per day compared to the median's 1.7, by effectively managing code validation and integrating AI tools like Chunk sidecars to streamline processes. The report suggests that shifting validation tasks earlier in the development process can markedly reduce delivery costs, exemplified by the potential $700,000 savings for a 50-developer team. The document underscores the transition from code generation to validation as the primary bottleneck and encourages teams to adopt strategies that accommodate the increasing code volume driven by AI advancements.

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