Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Q2 Holdings (NYSE: QTWO) and its peers.

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

While some vertical software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.8% since the latest earnings results.

Q2 Holdings (NYSE: QTWO)

With a platform powering digital services for approximately 25 million account holders across America, Q2 Holdings (NYSE: QTWO) provides cloud-based digital solutions that help financial institutions, fintechs, and alternative finance companies deliver modern banking experiences to their customers.

Q2 Holdings reported revenues of $208.2 million, up 13.8% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations but a significant miss of analysts’ billings estimates.

Unsurprisingly, the stock is down 9.9% since reporting and currently trades at $51.01.

Is now the time to buy Q2 Holdings? Access our full analysis of the earnings results here, it’s free.

Best Q4: Autodesk (NASDAQ: ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.96 billion, up 19.4% year on year, outperforming analysts’ expectations by 2.1%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $243.84.

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

Weakest Q4: Doximity (NYSE: DOCS)

With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.

Doximity reported revenues of $185.1 million, up 9.8% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted revenue and EBITDA guidance for next quarter missing analysts’ expectations.

As expected, the stock is down 26% since the results and currently trades at $24.66.

Read our full analysis of Doximity’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 $503.1 million, up 10.1% year on year. This print surpassed analysts’ expectations by 2.1%. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations.

The stock is down 11% since reporting and currently trades at $25.85.

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

Cadence Design Systems (NASDAQ: CDNS)

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Cadence Design Systems reported revenues of $1.44 billion, up 6.2% year on year. This number topped analysts’ expectations by 1%. It was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Cadence Design Systems had the weakest full-year guidance update among its peers. The stock is up 8.8% since reporting and currently trades at $308.50.

Read our full, actionable report on Cadence Design Systems 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.

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