The software sector has recovered nearly all of its market value after the AI-driven crash dubbed the « SaaSpocalypse ». The IGV software ETF has risen nearly 40% from its April lows, after falling an equal amount from its highs in the third quarter of 2025. Snowflake reported second-quarter results beating estimates with adjusted EPS of 62 cents on revenue of $1.55 billion, sending its shares up 22%. Palo Alto Networks also exceeded fourth-quarter fiscal estimates with adjusted EPS of $1.02 and revenue of $3.41 billion. According to Jefferies, data platforms and cybersecurity offer better prospects than applications, where AI monetization remains unpredictable.
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