Amid a significant downturn in software stocks in 2026, three companies—Dynatrace, Pegasystems, and Shopify—are announcing substantial share buyback authorizations, signaling management confidence that their shares are undervalued. Despite beating earnings estimates, these stocks have faced selling pressure due to concerns about AI disrupting the software industry.

The global Intelligent Process Automation market is projected to grow from USD 16.68 billion in 2025 to USD 38.82 billion by 2031, with a CAGR of 15.12%. Growth is driven by enterprise digital transformation, AI integration with RPA, and generative AI adoption. However, significant challenges include a critical shortage of skilled professionals needed to design and manage these systems, which is hindering implementation and scaling efforts.

The article highlights three AI and cloud infrastructure stocks with strong analyst support and long-term growth potential: Twilio (cloud communications platform with 15% YOY revenue growth), Arista Networks (networking hardware for data centers with 28% YOY revenue growth and AI-based networking revenue expected to nearly double), and Pegasystems (CRM and process automation with 27% YOY cloud ACV improvement). All three companies demonstrate strong fundamentals, solid cash positions, and analyst conviction for continued growth into 2026 and beyond.

Shannon River Fund Management initiated a new $35.26 million position in FormFactor by acquiring 968,161 shares in Q3. FormFactor's stock has risen 22% over the past year, outperforming the S&P 500. The company beat Q3 estimates with revenue of $202.7 million, expanded gross margins, and strong free cash flow recovery, driven by double-digit growth in DRAM probe cards and momentum in co-packaged optics systems.

Pegasystems reported strong Q3 2025 earnings, beating Wall Street estimates with 17% revenue growth, 58% earnings improvement, and significant momentum in cloud services and AI strategy.

Pegasystems reported strong Q2 2025 financial results, with revenue of $384.5 million and non-GAAP earnings of $0.28 per share, exceeding analyst estimates. The company saw significant growth in cloud adoption, with cloud annual contract value rising 28% year-over-year.

Voice2Me.ai expanded its AI voice agent platform across Salesforce, PEGA, and ServiceNow, offering enterprise-grade security and a model-agnostic architecture for advanced conversational AI solutions.

Quavo, a cloud-based software provider for fraud and dispute management, received a $300 million investment from Spectrum Equity to accelerate business growth and innovation. The company automates dispute resolution for financial institutions, reducing write-offs and improving customer experience.

Three companies (O'Reilly Automotive, Interactive Brokers, and Pegasystems) recently completed stock splits. Research suggests stock splits can potentially drive positive returns, with Pegasystems emerging as the most promising candidate due to its GenAI innovations.

B2B marketing experts will debate the impact of AI on the industry, with the audience and AI itself deciding the winner. The debate will feature proponents and opponents of AI in B2B marketing.

The Case Management Market is projected to grow from $7.89 billion in 2023 to $17.43 billion by 2032, driven by the rising need for efficient workflow automation and regulatory compliance across industries.

Pegasystems (PEGA) reported strong Q1 2025 earnings, driven by the success of its GenAI product. The company's cloud-based offerings and AI-powered workflow automation solutions are gaining traction, indicating significant long-term potential.