Software stocks underperformed the broader market for much of 2026 despite fears that generative AI would damage the sector’s fundamentals not materializing. Nuveen’s chief investment officer Saira Malik argues that software company earnings tell a different story than stock charts, with revenue growth rates remaining fairly stable and job cuts not occurring to the degree feared. Workday beat second-quarter revenue and profit estimates, while Autodesk raised its full-year revenue outlook but saw shares fall due to concerns over free cash-flow tied to an acquisition. Marvell beat both revenue and profit estimates, confirming the bullish momentum sparked by Nvidia, which raised its fiscal 2027 revenue growth outlook to 70%, well above the roughly 45% Wall Street had expected.
Source: Read the original article
