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 software development stocks fared in Q1, starting with Bandwidth (NASDAQ: BAND).

As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.

The 12 software development stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.9% while next quarter’s revenue guidance was in line.

Luckily, software development stocks have performed well with share prices up 32.5% on average since the latest earnings results.

Bandwidth (NASDAQ: BAND)

Powering communications for tech giants like Microsoft, Google, and Zoom, Bandwidth (NASDAQ: BAND) provides cloud-based communications software and APIs that enable businesses to embed voice, messaging, and emergency services into their applications and platforms.

Bandwidth reported revenues of $208.8 million, up 19.8% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Bandwidth achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 187% since reporting and currently trades at $69.43.

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

Best Q1: Datadog (NASDAQ: DDOG)

Named after a database the founders had to painstakingly look after at their previous company, Datadog (NASDAQ: DDOG) provides a software platform that helps organizations monitor and secure their cloud applications, infrastructure, and services.

Datadog reported revenues of $1.01 billion, up 32.2% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ annual recurring revenue and billings estimates.

Datadog delivered the biggest analyst estimate beat among its peers. The company added 240 enterprise customers paying more than $100,000 annually to reach a total of 4,550. The market seems happy with the results as the stock is up 61.8% since reporting. It currently trades at $232.50.

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

Slowest Q1: Akamai (NASDAQ: AKAM)

With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ: AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.

Akamai reported revenues of $1.07 billion, up 5.8% year on year, in line with analysts’ expectations. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations.

Akamai delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 22.1% since the results and currently trades at $142.43.

Read our full analysis of Akamai’s results here.

F5 (NASDAQ: FFIV)

Originally named after the F5 tornado, the most powerful on the meteorological scale, F5 (NASDAQ: FFIV) provides security and delivery solutions that protect applications across cloud, data center, and edge environments for large organizations.

F5 reported revenues of $811.7 million, up 11% year on year. This number beat analysts’ expectations by 3.7%. Overall, it was an exceptional quarter as it also logged a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 30.6% since reporting and currently trades at $396.88.

Read our full, actionable report on F5 here, it’s free.

Twilio (NYSE: TWLO)

Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE: TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.

Twilio reported revenues of $1.41 billion, up 20% year on year. This result topped analysts’ expectations by 4.7%. It was an exceptional quarter as it also put up a significant improvement in its net revenue retention rate and an impressive beat of analysts’ EBITDA estimates.

The stock is up 42.5% since reporting and currently trades at $211.00.

Read our full, actionable report on Twilio 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.