The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Appian (NASDAQ: APPN) and the rest of the automation software stocks fared in Q2.
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 an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 9.1% while next quarter’s revenue guidance was in line.
Luckily, automation software stocks have performed well with share prices up 11.5% on average since the latest earnings results.
Appian (NASDAQ: APPN)
Founded by Matt Calkins and his three friends out of an apartment in Northern Virginia, Appian (NASDAQ: APPN) sells a software platform that lets its users build applications without using much code, allowing them to create new software more quickly.
Appian reported revenues of $170.6 million, up 16.5% year on year. This print exceeded analysts’ expectations by 6.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.
“Appian AI drove strong financial results in the second quarter of 2025, with higher prices and a larger pipeline,” said Matt Calkins, CEO & Founder.
Appian achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 10.4% since reporting and currently trades at $29.73.
Is now the time to buy Appian? Access our full analysis of the earnings results here, it’s free.
Best Q2: SoundHound AI (NASDAQ: SOUN)
Founded in 2005, SoundHound AI (NASDAQ: SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers.
SoundHound AI reported revenues of $42.68 million, up 217% year on year, outperforming analysts’ expectations by 31.2%. The business had an incredible quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
SoundHound AI delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 52.7% since reporting. It currently trades at $16.41.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Pegasystems (NASDAQ: PEGA)
Founded by Alan Trefler in 1983, Pegasystems (NASDAQ: PEGA) offers a software-as-a-service platform to automate and optimize workflows in customer service and engagement.
Pegasystems reported revenues of $384.5 million, up 9.5% year on year, exceeding analysts’ expectations by 5.9%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ EBITDA estimates.
Pegasystems delivered the slowest revenue growth in the group. Interestingly, the stock is up 1.8% since the results and currently trades at $51.90.
Read our full analysis of Pegasystems’s results here.
ServiceNow (NYSE: NOW)
Founded by Fred Luddy, who coded the company's initial prototype on a flight from San Francisco to London, ServiceNow (NYSE: NOW) is a software provider helping companies automate workflows across IT, HR, and customer service.
ServiceNow reported revenues of $3.22 billion, up 22.4% year on year. This number surpassed analysts’ expectations by 2.9%. It was an exceptional quarter as it also produced an impressive beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
ServiceNow had the weakest performance against analyst estimates among its peers. The stock is down 11% since reporting and currently trades at $850.86.
Read our full, actionable report on ServiceNow here, it’s free.
Microsoft (NASDAQ: MSFT)
Short for microcomputer software, Microsoft (NASDAQ: MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services.
Microsoft reported revenues of $76.44 billion, up 18.1% year on year. This print beat analysts’ expectations by 3.5%. Overall, it was an exceptional quarter as it also logged a narrow beat of analysts’ revenue estimates, as Personal Computing, Intelligent Cloud, and Business Services all beat and an impressive beat of analysts’ operating income estimates.
The stock is up 1.8% since reporting and currently trades at $523.26.
Read our full, actionable report on Microsoft here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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