Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Toast (NYSE: TOST) and its peers.

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.6% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.8% since the latest earnings results.

Toast (NYSE: TOST)

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Toast reported revenues of $1.63 billion, up 21.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

Toast delivered the weakest performance against analyst estimates of the whole group. The market seems disappointed with the results as the stock is down 16% since reporting and currently trades at $24.69.

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

Best Q1: Adobe (NASDAQ: ADBE)

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Adobe reported revenues of $6.62 billion, up 12.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Adobe delivered the highest guidance raise and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $195.25.

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

Weakest Q1: Upstart (NASDAQ: UPST)

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Upstart reported revenues of $308.2 million, up 44.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and full-year revenue guidance slightly missing analysts’ expectations.

Interestingly, the stock is up 3.7% since the results and currently trades at $32.32.

Read our full analysis of Upstart’s results here.

Procore Technologies (NYSE: PCOR)

With a mission to build software for the people that build the world, Procore Technologies (NYSE: PCOR) provides cloud-based software that enables owners, contractors, and other stakeholders to collaborate and manage construction projects from any device.

Procore Technologies reported revenues of $359.3 million, up 15.7% year on year. This print surpassed analysts’ expectations by 1.9%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ annual recurring revenue estimates but billings in line with analysts’ estimates.

The stock is down 37.1% since reporting and currently trades at $39.05.

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

Autodesk (NASDAQ: ADSK)

Starting with AutoCAD in the 1980s and evolving into a comprehensive design ecosystem, Autodesk (NASDAQ: ADSK) provides software solutions for architecture, engineering, construction, manufacturing, and entertainment industries to design, simulate, and visualize projects.

Autodesk reported revenues of $1.93 billion, up 18.4% year on year. This number topped analysts’ expectations by 2.2%. It was a strong quarter as it also produced an impressive beat of analysts’ billings estimates and EPS guidance for next quarter beating analysts’ expectations.

The stock is down 19.6% since reporting and currently trades at $193.75.

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