Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Guidewire Software (NYSE: GWRE) and the best and worst performers in the vertical software industry.

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 7.1% since the latest earnings results.

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. This print exceeded analysts’ expectations by 4.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

Guidewire Software pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.7% since reporting and currently trades at $138.82.

We think Guidewire Software is a good business, but is it a buy today? Read our full report here, it’s free.

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, outperforming analysts’ expectations by 2.7%. The business had a strong quarter with a solid beat of analysts’ billings estimates and full-year guidance of accelerating revenue growth.

Bentley Systems scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $35.04.

Is now the time to buy Bentley Systems? 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 21.6% since the results and currently trades at $133.03.

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 print surpassed analysts’ expectations by 4.3%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.

Alarm.com had the weakest full-year guidance update among its peers. The stock is down 1.1% since reporting and currently trades at $44.69.

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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.