The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automation software stocks fared in Q4, starting with SoundHound AI (NASDAQ: SOUN).

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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 3% 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 13.5% since the latest earnings results.

Weakest Q4: 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 $55.06 million, up 59.4% year on year. This print exceeded analysts’ expectations by 2.3%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ billings estimates but a significant miss of analysts’ EBITDA estimates.

SoundHound AI scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 0.7% since reporting and currently trades at $6.71.

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

Best Q4: Appian (NASDAQ: APPN)

Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ: APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.

Appian reported revenues of $202.9 million, up 21.7% year on year, outperforming analysts’ expectations by 7.2%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Appian achieved the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $23.88.

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

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 $481.1 million, up 13.6% year on year, exceeding analysts’ expectations by 3.5%. Still, it was a mixed quarter as it posted a significant miss of analysts’ billings estimates.

As expected, the stock is down 11% since the results and currently trades at $11.02.

Read our full analysis of UiPath’s results here.

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 $504.3 million, up 2.7% year on year. This print beat analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ billings estimates and full-year EPS guidance exceeding analysts’ expectations.

Pegasystems delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $42.68.

Read our full, actionable report on Pegasystems 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 $81.27 billion, up 16.7% year on year. This result topped analysts’ expectations by 1.2%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is down 23.2% since reporting and currently trades at $369.80.

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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.