Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Bentley Systems (NASDAQ: BSY) 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 4 vertical software stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.5% 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 7.5% since the latest earnings results.

Bentley Systems (NASDAQ: BSY)

Pioneering the concept of "digital twins" for infrastructure projects long before it became an industry buzzword, Bentley Systems (NASDAQ: BSY) provides software solutions that help engineers design, build, and operate infrastructure projects across sectors including roads, bridges, utilities, mining, and industrial facilities.

Bentley Systems reported revenues of $391.6 million, up 11.9% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a solid beat of analysts’ billings estimates and full-year guidance of accelerating revenue growth.

CEO Nicholas Cumins said, “We delivered a strong finish to the year, giving us great momentum for our 2026 outlook, and I want to thank our colleagues for their outstanding dedication and our users for their continued partnership. The standout growth of our Seequent business continues to successfully expand our addressable market into critical resources. In parallel, we are building momentum in AI, from the growing commercial traction of Bentley Asset Analytics in operations, to our strategic push in the foundational area of AI in design—where we see enormous potential and are building the market to secure long-term leadership.”

Bentley Systems achieved the highest full-year guidance raise of the whole group. The stock is up 5.8% since reporting and currently trades at $34.36.

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

Best Q4: Guidewire Software (NYSE: GWRE)

With its systems powering the operations of hundreds of insurance brands across 42 countries, Guidewire Software (NYSE: GWRE) provides a technology platform that helps property and casualty insurance companies manage their core operations, digital engagement, and analytics.

Guidewire Software reported revenues of $359.1 million, up 24% year on year, outperforming analysts’ expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts’ billings and EBITDA estimates.

Guidewire Software delivered the biggest analyst estimates beat and 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 13% since reporting. It currently trades at $139.86.

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

Weakest Q4: Manhattan Associates (NASDAQ: MANH)

Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.

Manhattan Associates reported revenues of $270.4 million, up 5.7% year on year, exceeding analysts’ expectations by 2.2%. Still, it was a mixed quarter as it posted full-year EPS guidance missing analysts’ expectations.

Manhattan Associates delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.5% since the results and currently trades at $129.78.

Read our full analysis of Manhattan Associates’s results here.

Alarm.com (NASDAQ: ALRM)

Processing over 325 billion data points annually from more than 150 million connected devices, Alarm.com (NASDAQ: ALRM) provides cloud-based platforms that enable residential and commercial property owners to remotely monitor and control their security, video, energy, and other connected devices.

Alarm.com reported revenues of $261.7 million, up 8% year on year. This result surpassed analysts’ expectations by 4.3%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA and billings estimates.

Alarm.com had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $45.64.

Read our full, actionable report on Alarm.com 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 Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.