Looking back on productivity software stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including monday.com (NASDAQ: MNDY) and its peers.
Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.
The 16 productivity software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.9% since the latest earnings results.
monday.com (NASDAQ: MNDY)
With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com (NASDAQ: MNDY) is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.
monday.com reported revenues of $351.3 million, up 24.5% 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’ annual recurring revenue estimates and a narrow beat of analysts’ billings estimates.
“Q1 was a strong quarter across every financial dimension, with revenue, margins and cash flow all coming in ahead of expectations,” said Eliran Glazer, monday.com CFO.
Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.7% since reporting and currently trades at $69.40.
Best Q1: SoundHound AI (NASDAQ: SOUN)
Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ: SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.
SoundHound AI reported revenues of $44.2 million, up 51.7% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates.
SoundHound AI pulled off the fastest revenue growth 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 33.1% since reporting. It currently trades at $6.45.
Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $430 million, down 9.6% year on year, falling short of analysts’ expectations by 7.3%. It was a softer quarter as it posted billings in line with analysts’ estimates.
Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.4% since the results and currently trades at $30.11.
Read our full analysis of Pegasystems’s results here.
RingCentral (NYSE: RNG)
Built on its proprietary Message Video Phone (MVP) platform that unifies multiple communication methods, RingCentral (NYSE: RNG) provides AI-driven cloud communications and collaboration solutions that enable businesses to connect through voice, video, messaging, and contact center services.
RingCentral reported revenues of $644.2 million, up 5.3% year on year. This result met analysts’ expectations. More broadly, it was a mixed quarter as it also logged full-year EPS guidance beating analysts’ expectations but a miss of analysts’ billings estimates.
The stock is down 21% since reporting and currently trades at $35.86.
Read our full, actionable report on RingCentral here, it’s free.
UiPath (NYSE: PATH)
Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath (NYSE: PATH) provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.
UiPath reported revenues of $418.4 million, up 17.3% year on year. This number topped analysts’ expectations by 5.2%. Aside from that, it was a mixed quarter as it also recorded full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ billings estimates.
The stock is down 10.9% since reporting and currently trades at $10.32.
Read our full, actionable report on UiPath 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.
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