The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automation software stocks fared in Q4, starting with ServiceNow (NYSE: NOW).

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 6 automation software stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.7% since the latest earnings results.

ServiceNow (NYSE: NOW)

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 $3.57 billion, up 20.7% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates.

The stock is down 26.4% since reporting and currently trades at $95.40.

We think ServiceNow is a good business, but is it a buy today? Read our full report here, it’s free.

Best Q4: Appian (NASDAQ: APPN)

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 $202.9 million, up 21.7% year on year, outperforming analysts’ expectations by 7.2%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

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 11.1% since reporting. It currently trades at $21.39.

Is now the time to buy Appian? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: SoundHound AI (NASDAQ: SOUN)

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 $55.06 million, up 59.4% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 11.1% since the results and currently trades at $7.98.

Read our full analysis of SoundHound AI’s results here.

Microsoft (NASDAQ: MSFT)

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 $81.27 billion, up 16.7% year on year. This result topped analysts’ expectations by 1.2%. Overall, it was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is down 13.6% since reporting and currently trades at $415.98.

Read our full, actionable report on Microsoft here, it’s free.

Pegasystems (NASDAQ: PEGA)

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 $504.3 million, up 2.7% year on year. This print surpassed analysts’ expectations by 2.6%. It was a very strong quarter as it also recorded a solid beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.

Pegasystems pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $42.79.

Read our full, actionable report on Pegasystems here, it’s free.

Market Update

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’s 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’ 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 Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.