The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how automation software stocks fared in Q1, starting with UiPath (NYSE: PATH).
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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.5% 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 19.1% since the latest earnings results.
UiPath (NYSE: PATH)
Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.
UiPath reported revenues of $418.4 million, up 17.3% year on year. This print exceeded analysts’ expectations by 5.2%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ billings estimates.
UiPath delivered the weakest guidance update and weakest full-year guidance update of the whole group. The market seems disappointed with the results as the stock is down 14% since reporting and currently trades at $9.96.
Read our full report on UiPath here, it’s free.
Best Q1: 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 $44.2 million, up 51.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates.
SoundHound AI pulled off the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 35.6% since reporting. It currently trades at $6.20.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $430 million, down 9.6% year on year, falling short of analysts’ expectations by 7.3%. It was a softer quarter as it posted billings in line with analysts’ estimates.
Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 25.8% since the results and currently trades at $29.13.
Read our full analysis of Pegasystems’s results here.
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 $3.77 billion, up 22.1% year on year. This result surpassed analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it underperformed in some other aspects of the business.
The stock is down 12.8% since reporting and currently trades at $89.92.
Read our full, actionable report on ServiceNow here, it’s free.
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 $82.89 billion, up 18.3% year on year. This print topped analysts’ expectations by 1.7%. It was a strong quarter as it also recorded a decent beat of analysts’ EPS estimates.
The stock is down 16.3% since reporting and currently trades at $355.30.
Read our full, actionable report on Microsoft 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 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
