The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how vertical software stocks fared in Q2, starting with Agilysys (NASDAQ: AGYS).
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 Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.5% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Agilysys (NASDAQ: AGYS)
With a tech stack that powers everything from check-in to checkout at some of the world's top hospitality venues, Agilysys (NASDAQ: AGYS) develops and provides cloud-based and on-premise software solutions for hotels, resorts, casinos, and restaurants to manage operations and enhance guest experiences.
Agilysys reported revenues of $87.68 million, up 14.3% year on year. This print exceeded analysts’ expectations by 1.7%. Overall, it was a satisfactory quarter for the company with full-year revenue guidance slightly topping analysts’ expectations.
Ramesh Srinivasan, President and CEO of Agilysys, commented, “Q1 Fiscal 2027 was another good quarter with the overall business fundamentals making excellent progress. Revenue was a record $87.7 million, the 18th consecutive record revenue quarter, driven by subscription growth of 26% and record professional services revenue of $19.6 million.
Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 3.4% since reporting and currently trades at $99.71.
Is now the time to buy Agilysys? Access our full analysis of the earnings results here, it’s free.
Best Q2: Unity (NYSE: U)
Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.
Unity reported revenues of $546.5 million, up 23.9% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with a solid beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Unity scored the biggest analyst estimate beat of the whole group. The market seems happy with the results as the stock is up 16.3% since reporting. It currently trades at $41.25.
Is now the time to buy Unity? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $364.7 million, up 41.7% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly.
Upstart delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 19% since the results and currently trades at $24.55.
Read our full analysis of Upstart’s results here.
Dolby Laboratories (NYSE: DLB)
Known for its iconic "D" logo that appears before countless movies and TV shows, Dolby Laboratories (NYSE: DLB) designs and licenses audio and video technologies that enhance entertainment experiences in movies, TV shows, music, and other media.
Dolby Laboratories reported revenues of $305 million, down 3.3% year on year. This result lagged analysts’ expectations by 2%. More broadly, it was a mixed quarter as it also logged revenue guidance for next quarter exceeding analysts’ expectations but EPS guidance for next quarter meeting analysts’ expectations.
Dolby Laboratories pulled off the highest guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 11.1% since reporting and currently trades at $57.54.
Read our full, actionable report on Dolby Laboratories here, it’s free.
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 $375.2 million, up 15.8% year on year. This print topped analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is down 1.3% since reporting and currently trades at $49.52.
Read our full, actionable report on Procore Technologies here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
