May 19, 2026
As the Q1 earnings season comes to a close, it\u2019s time to take stock of this quarter\u2019s best and worst performers in the automation software industry, 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 satisfactory Q1. As a group, revenues beat analysts\u2019 consensus estimates by 0.8% while next quarter\u2019s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.5% 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 $430 million, down 9.6% year on year. This print fell short of analysts\u2019 expectations by 7.3%. Overall, it was a softer quarter for the company with a significant miss of analysts\u2019 revenue and EBITDA estimates. <\/p>\n
Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 11.8% since reporting and currently trades at $34.67.
Read our full report on Pegasystems here, it\u2019s free<\/a>.
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 $202.2 million, up 21.5% year on year, outperforming analysts\u2019 expectations by 5.6%. The business had a very strong quarter with a solid beat of analysts\u2019 billings and EBITDA estimates.
Appian scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.2% since reporting. It currently trades at $21.05.
Is now the time to buy Appian? Access our full analysis of the earnings results here, it\u2019s free<\/a>.
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 $44.2 million, up 51.7% year on year, exceeding analysts\u2019 expectations by 3.4%. It was a satisfactory quarter as it also posted a solid beat of analysts\u2019 billings estimates but a significant miss of analysts\u2019 EBITDA estimates.
As expected, the stock is down 13.5% since the results and currently trades at $8.33.
Read our full analysis of SoundHound AI\u2019s results here. <\/a>
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 $82.89 billion, up 18.3% year on year. This print topped analysts\u2019 expectations by 1.7%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts\u2019 revenue and EPS estimates.
The stock is flat since reporting and currently trades at $423.17.
Read our full, actionable report on Microsoft here, it\u2019s free.<\/a>
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 $3.77 billion, up 22.1% year on year. This number beat analysts\u2019 expectations by 0.6%. It was a strong quarter as it also put up an impressive beat of analysts\u2019 EBITDA estimates and a narrow beat of analysts\u2019 annual recurring revenue estimates.
The stock is up 2.3% since reporting and currently trades at $105.48.
Read our full, actionable report on ServiceNow here, it\u2019s free.<\/a>
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today\u2019s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US\u2019 conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks<\/a> and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory\u2019s analyst team \u2014 all seasoned professional investors \u2014 uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.<\/em>
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Data sources: actuals and consensus estimates from StockStory<\/a>, S&P Global Market Intelligence<\/a>, and Visible Alpha<\/a>. Market data from Massive<\/a>.
Provided for general information purposes only and does not constitute investment advice or a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific individual. Information on our investment framework and performance methodology is available here<\/a>.
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