As third-quarter earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the software development industry, including HashiCorp (NASDAQ:HCP) and its peers.
As legendary venture capital investor Marc Andreessen says, “Software is eating the world,” and it’s affecting virtually every industry. That’s driving increasing demand for tools that help software developers do their work, whether it’s monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
The eleven software development stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 3.3%, while revenue expectations for the next quarter were 0.7% above.
Fortunately, the companies’ share prices have been resilient, having risen an average of 8.7% since the last earnings results.
HashiCorp (NASDAQ:HCP), originally founded as a research project at the University of Washington, provides software that allows companies to manage their own applications in a multi-cloud environment.
HashiCorp reported revenue of $173.4 million, up 18.7% year over year. This print exceeded analyst expectations by 6.1%. Overall, it was a strong quarter for the company, with a solid increase in EBITDA estimates and analyst billings in line with analyst estimates.
“The HashiCorp team delivered strong performance during the third quarter of fiscal 2025, with revenue growth of 19% year-over-year and 8% growth at $100,000 customers year-over-year,” said Dave McJannet, CEO of HashiCorp.
Unsurprisingly, the stock is down 1.2% since reporting and is currently trading at $33.23.
Is Now the Time to Buy HashiCorp? See our full analysis of earnings results here. It’s free.
JFrog (NASDAQ:FROG), named after its founders’ affinity for frogs, offers a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
JFrog reported revenue of $109.1 million, up 23% year over year, and beat analyst expectations by 3.3%. The company had a very strong quarter with an impressive return on analyst expectations and accelerating growth among major customers.
While it had a good quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It is currently trading at $31.20.
Is Now the Time to Buy JFrog? See our full analysis of earnings results here. It’s free.
Founded in 1999 by two MIT engineers, Akamai (NASDAQ:AKAM) provides software that helps organizations efficiently deliver Web content to their customers.
Akamai reported revenue of $1.00 billion, up 4.1% year over year, beating analyst expectations by 0.5%. Still, it was a slower quarter as full-year revenue expectations met analyst expectations.
Akamai delivered the weakest performance compared to analyst estimates, the slowest revenue growth and the weakest full-year guidance update within the group. As expected, the stock has fallen 6.4% since the results and is currently trading at $97.74.
Read our full analysis of Akamai’s results here.
F5 (NASDAQ:FFIV) initially started as a hardware equipment company in the late 1990s, making software that helps large enterprises ensure their web applications are always available by distributing network traffic and protecting them from cyberattacks.
F5 reported revenue of $746.7 million, up 5.6% year over year. This figure exceeded analyst expectations by 2.2%. Overall, it was a strong quarter, as analyst expectations and revenue expectations for the following quarter were also significantly exceeded. This quarter was slightly higher than analyst expectations.
The stock is up 21.2% since reporting and is currently trading at $264.85.
Read our full, actionable report on F5 here. It’s free.
Named after a database that the founders had to painstakingly maintain at their previous company, Datadog (NASDAQ:DDOG) is a software-as-a-service platform that makes it easier to monitor cloud infrastructure and applications.
Datadog reported revenue of $690 million, up 26% year over year. This result exceeded analyst expectations by 3.8%. It was a very strong quarter, as analysts’ annual recurring revenue estimates and earnings per share guidance for the next quarter also showed solid improvement, exceeding analyst expectations.
The company added 100 business customers paying more than $100,000 annually, bringing the total to 3,490. The stock is up 20.8% since reporting and is currently trading at $155.
Read our full, actionable report on Datadog here. It’s free.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs and is moving closer to the 2% target. This disinflation has occurred without serious consequences for economic growth, indicating a soft landing success. The stock market boomed in 2024, boosted by recent interest rate cuts (0.5% in September and 0.25% in November), and a notable rally followed Donald Trump’s presidential election victory in November, sending the indices to historic highs were pushed. Nevertheless, the outlook for 2025 remains clouded by possible changes in trade policy and corporate tax discussions, which could impact business confidence and growth. The path forward involves both optimism and caution as new policies take shape.
Do you want to invest in winners with rock-solid fundamentals? View our Top 6 stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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