As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the design software industry, including Procore Technologies (NYSE: PCOR) and its peers.

The demand for rich, interactive 2D, 3D, VR and AR experiences is growing, and while the ubiquitous metaverse might still be more of a buzzword than a real thing, what is real is the demand for the tools to create these experiences, whether they are games, 3D tours or interactive movies.

The 7 design software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 3% while next quarter’s revenue guidance was 1% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.4% since the latest earnings results.

Procore Technologies (NYSE: PCOR)

With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.

Procore Technologies reported revenues of $359.3 million, up 15.7% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ annual recurring revenue estimates but billings in line with analysts’ estimates.

The market seems disappointed with the results as the stock is down 34.1% since reporting and currently trades at $40.91.

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

Best Q1: Adobe (NASDAQ: ADBE)

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Adobe reported revenues of $6.62 billion, up 12.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Adobe delivered the highest guidance raise and highest full-year guidance raise 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 2.7% since reporting. It currently trades at $212.80.

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

Weakest Q1: Dolby Laboratories (NYSE: DLB)

Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE: DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media.

Dolby Laboratories reported revenues of $395.6 million, up 7.1% year on year, exceeding analysts’ expectations by 2.8%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly.

Dolby Laboratories delivered the weakest guidance update and slowest revenue growth of the whole group. As expected, the stock is down 23.4% since the results and currently trades at $49.15.

Read our full analysis of Dolby Laboratories’s results here.

Unity (NYSE: U)

Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.

Unity reported revenues of $508.2 million, up 16.8% year on year. This number surpassed analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.

Unity had the weakest performance against analyst estimates in the group. The stock is up 6.2% since reporting and currently trades at $28.98.

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

PTC (NASDAQ: PTC)

Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.

PTC reported revenues of $774.3 million, up 21.7% year on year. This result topped analysts’ expectations by 8.6%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ billings estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

PTC delivered the biggest analyst estimate beat and fastest revenue growth among its peers. The stock is down 17.3% since reporting and currently trades at $113.11.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

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.