Automation Software Stocks: A Q3 Earnings Recap
As teh craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at automation software stocks, starting with Microsoft (NASDAQ:MSFT).
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 7 automation software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was in line.
While some automation software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.
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 $77.67 billion, up 18.4% year on year. This print exceeded analysts’ expectations by 2.9%. it was a very strong quarter for the company with a narrow beat of analysts’ revenue estimates, as the beat in bright Cloud and Business Services trumped the miss in Personal Computing and a solid beat of analysts’ revenue estimates.
“Our planet-scale cloud and AI factory, together with Copilots across high value domains, is driving broad diffusion and real-world impact,” said Satya Nadella, chairman and chief executive officer of Microsoft.
The stock is down 11.1% since reporting and currently trades at $483.36.
Read why we think that Microsoft is one of the best automation software stocks, our full report is free.
Best Q3: 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 $381.4 million,up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with a solid beat of analysts’ billings estimates and an extraordinary beat of analysts’ EBITDA estimates.
Pegasystems pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.7% as reporting. It currently trades at $59.73.
Is now the time to buy Pegasystems? Access our full analysis
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