Global macroeconomic uncertainty is threatening IT budgets within the Zacks Computer Software industry, which has underperformed traditional market indices, losing 12.1% over the past year. In contrast, the S&P 500 and broader tech sector saw gains of 20.3% and 26.7%, respectively. The industry is currently ranked #165 by Zacks, placing it in the bottom 33% of over 247 sectors.
Despite challenges, the global software market is projected to reach $2.46 trillion with a CAGR of 11.6% from 2026 to 2035. Key trends include a continued rise in AI and machine learning, with worldwide spending in these areas expected to hit $2.59 trillion by 2026, up 47% from 2025. Companies like Oracle Corporation (ORCL), ACI Worldwide (ACIW), and Progress Software Corporation (PRGS) are well-positioned to benefit from the seamless integration of AI technologies and the continued shift towards cloud-based services.
Notably, Oracle’s fourth-quarter revenues surged to $19.2 billion, a 21% increase year-over-year, while cloud infrastructure revenues rose 93%. ACI Worldwide reported second-quarter revenues of $430 million, a 7% year-over-year increase, and it raised its 2026 revenue guidance. Progress Software’s second-quarter revenues reached approximately $253 million, reflecting a 7% year-over-year rise, supported by embedded AI capabilities across its products.
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