US software stocks reach fresh 2026 highs
U.S. software stocks climbed to fresh 2026 highs as concerns that artificial intelligence would disrupt the industry faster than expected continued to ease.
The S&P 500 software and services index rose 1.3% on Tuesday to its highest level since November 2025, after posting its strongest quarterly advance since the second quarter of 2020 during July-September.
Strong results from Salesforce, ServiceNow and Accenture, alongside partnerships with AI labs, have supported the recovery.
AI-related competitive risks have not disappeared, however. As additional data-center capacity comes online and lowers the cost of AI-assisted software development, traditional software companies could face a more significant competitive test, particularly from the second half of 2027.
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