Investing.com — BofA Securities has reiterated its top picks in Software, namely SAP, Sage Group, Planisware, HBX Group, Nemetschek and Temenos, after what it calls a “solid” start to the Q3 reporting season.
Twelve companies in BofA’s universe have reported, with ten still to come, seven of them this week. Ten of the twelve beat revenue expectations, and only Temenos and Netcompany missed. All four companies that reported profit beat expectations.
Most raised guidance, including Dassault Systèmes, SAP, Temenos, Alten, Capgemini, Netcompany, Sopra Steria and Wise. Adyen was the exception, cutting its margin guidance as it invests in acquisitions to capture strong demand.
BofA sees no clear signs of AI-driven disintermediation, and no material macro impact from political uncertainty in France or the Middle East.
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Sentiment toward the sector is still fragile. On 29 October, SAP shares fell nearly 2% in premarket trading after ServiceNow and Fortinet disappointed.
Both raised annual outlooks, but investors focused on weak Q4 guidance, slowing growth in Fortinet’s services unit, and lagging subscription revenue and backlog at ServiceNow.
On 23 October, Planisware fell 7.3% despite Q3 revenue of €57.4 million, up 15.6% year on year and ahead of expectations.
The company kept its 2026 targets of at least 13% constant-currency revenue growth and an adjusted EBITDA margin of at least 37.4%, which disappointed investors hoping for an upgrade. It plans to launch its Prisma AI solution commercially by the end of Q1 2027.
Fundamentals across BofA’s coverage look healthy, with broad beats and guidance upgrades.
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