US software stocks highest since November 2025 on AI, earnings
US software stocks are on a roll, reaching highest levels since November 2025 as AI partnerships and upbeat earnings push the sector forward.
The S&P 500 software and services index jumped again this Tuesday, thanks to strong results from big names like Salesforce, ServiceNow, and Accenture.
Experts say AI is helping, not hurting, the industry's comeback.
Analysts expect 20.6% software earnings growth
This surge follows a rough patch earlier in the year when software stocks dropped over 26% during the so-called "SaaSpocalypse," mostly because of fears about companies using AI to build applications in-house more cheaply.
Now, cybersecurity firms like Crowdstrike and Palo Alto Networks are seeing major gains as businesses boost digital security spending.
Looking ahead, analysts expect software earnings to grow by 20.6% in 2026, and they're watching closely to see how companies handle more changes coming with AI in 2027.