Core Viewpoint - Kessler Topaz Meltzer & Check, LLP is investigating potential violations of federal securities laws on behalf of investors of Commvault Systems, Inc. following a significant decline in stock price after the company reported its third-quarter financial results for fiscal 2026 [1] Financial Performance - Commvault reported a 40% growth in SaaS ARR, reaching $364 million for the third quarter of fiscal 2026, which is a deceleration from the 56% growth reported in the second quarter of fiscal 2026 [1] - The company indicated that 60% of its deals closed in the last few weeks of the quarter [1] Stock Market Reaction - Following the financial results announcement, Commvault's stock price fell by $40.23 per share, approximately 31.1%, from a closing price of $129.36 on January 26, 2026, to $89.13 on January 27, 2026 [1]

Core Viewpoint - Employees at Salesforce.com Inc are urging CEO Marc Benioff to publicly condemn the actions of U.S. Immigration and Customs Enforcement (ICE) and to prohibit the use of Salesforce software by immigration agents, while also advocating for federal legislation to reform the agency [1][2]. Group 1: Employee Concerns - An internal letter from Salesforce employees criticizes the company's reported pitch of AI tools to ICE, arguing that it conflicts with Salesforce's commitment to ethical technology use [2]. - The letter emphasizes Benioff's influence in Washington and calls for him to publicly denounce ICE's conduct and establish prohibitions on the use of Salesforce products for state violence [3]. Group 2: CEO's Controversial Remarks - The backlash against Benioff followed a joke he made during a company meeting, suggesting that ICE agents were present to monitor international employees, which was perceived negatively by staff [4]. Group 3: Industry Trends - There is a growing trend among tech employees to oppose their companies' relationships with government agencies, as seen with over a thousand Google employees calling for an end to contracts with federal immigration enforcement [5]. Group 4: Company Developments - Salesforce has been reducing its workforce amid a shift towards AI, and has appointed six new or promoted executives to lead key units, following the exit of five prominent leaders since December [7].

Core Insights - The company demonstrated resilience in 2025, achieving strong recurring revenue growth and free cash flow, with recurring revenues increasing by 11% and free cash flow reaching a record high with a margin of 41% in Q4 [1][16]. Financial Performance - Total revenues for Q4 were $575.2 million, up 6.3% year-over-year, with subscription revenue growing 16.1% and SaaS revenues surpassing $200 million for the first time [10][12]. - Transaction revenues increased by 12.1% to $1.967 billion, driven by higher transaction volumes and new service deployments [13]. - Annualized recurring revenue reached approximately $2.06 billion, up 10.9% [14]. Strategic Initiatives - The company is focused on four key growth pillars: completing the cloud transition, leveraging the client base, growing the transactions business, and expanding into new markets [5]. - SaaS bookings grew by 9.6% year-over-year, with significant momentum from converting on-premises clients to cloud solutions, resulting in a 645% increase in annual contract value from flips signed in Q4 [4][14]. Market Position and Opportunities - The public sector market fundamentals remain strong, with healthy budgets supporting an active pipeline and elevated levels of RFP and sales demo activity [4]. - The company is well-positioned to capitalize on opportunities in AI and digital transformation, with successful implementations of AI solutions in multiple states [21][22]. Guidance and Future Outlook - For 2026, the company expects total revenues between $2.5 billion and $2.55 billion, implying growth of approximately 8.3%, with GAAP diluted EPS projected between $8.30 and $8.61 [17]. - SaaS revenue growth is expected to be between 20.5% and 22.5%, while transaction revenues are projected to grow between 5% and 7% [18][19]. Capital Allocation - The company announced a new share repurchase program of up to $1 billion, reflecting confidence in its business trajectory and the attractiveness of its shares at current levels [28]. - The balance sheet remains strong, enabling the company to pursue strategic acquisitions while returning capital to shareholders [29][62].

Shares of leading public sector software company Tyler Technologies (NYSE: TYL) are down 15% as of noon ET on Thursday after the company reported fourth-quarter earnings. Sales and adjusted net income grew 6% and 8% during Q4, but fell well short of Wall Street's consensus. Management guided for 8% sales growth in 2026 -- a far cry from its 15% annualized growth rate over the last five years. On top of these underwhelming results, the software industry remains in turmoil as the market weighs which SaaS com ...

Core Insights - AppLovin delivered a beat-and-raise quarter for the fourth quarter, with revenue and profits exceeding analyst expectations [1] - Management provided guidance for the upcoming quarter that is above Wall Street estimates [1] Financial Performance - Revenue and profits for the fourth quarter surpassed analyst expectations, indicating strong financial performance [1] Future Outlook - The guidance issued by management for the next quarter is optimistic, suggesting continued growth and performance above market expectations [1]

Group 1: Software Stocks - Retail investors are actively buying software stocks despite the current poor performance of the sector, with some analysts cautioning against this trend [2][11] - The sentiment around software stocks is mixed, with some believing the market has overreacted and presents buying opportunities, while others remain skeptical about the long-term viability of certain companies like Workday and Salesforce [11][14] - The AI trade is still in its early stages, causing anxiety among investors about potential job losses and market changes, but there is optimism about new job creation in the long run [12][19] Group 2: Consumer Staples - Consumer staples have been performing well, with companies like Coca-Cola reporting solid earnings, while Kraft's performance was disappointing [3][42] - McDonald's has seen strong US sales attributed to value offerings and marketing strategies, despite concerns about the impact of GLP-1 weight loss drugs on consumer behavior [46][61] - The company is focusing on value and affordability to attract lower-income consumers, which has been successful in recent quarters [49][52] Group 3: Memory Chips - Lenovo's CEO indicated that the memory chip shortage affecting hardware companies will continue into the year-end, echoing sentiments from Cisco's CEO [5][6] - This ongoing shortage is seen as beneficial for memory chip companies like Sandisk, which are experiencing stock price increases [6] Group 4: Economic Outlook - The economy is showing signs of strength, with corporate earnings exceeding expectations and a robust jobs report indicating private payroll growth [23][26] - Analysts suggest that the current economic conditions favor cyclical and defensive value stocks, with the value trade up 4.5% year-to-date compared to a 1.5% decline in growth stocks [24][25] - There is a belief that the economy does not require further rate cuts, as current conditions do not indicate a downturn [28][29]

Core Insights - The software-as-a-service (SaaS) sector experienced significant market cap losses, with major companies like Salesforce, Intuit, ServiceNow, and Adobe shedding hundreds of billions of dollars as AI hyperscalers announced capital expenditures exceeding market expectations [2] - The energy and materials sectors are leading the current bull market, with both sectors up over 15% in 2026, driven by rising oil and metals prices, a weaker dollar, and a rotation trade [3] - The narrative of "sell America" has shifted to "buy ex-USA," as international equities have surged, coinciding with the Dow crossing 50,000 for the first time and the S&P 500 nearing record highs [5] Market Performance - Information Technology is currently near the bottom of the S&P 500 year-to-date sector performance, while resource stocks are outperforming [3] - Oil and gas companies are achieving higher profits and stock prices despite historically low WTI and Brent values, indicating improved efficiency [4] Economic Indicators - Treasury yields have decreased recently, and U.S. corporate bonds are trading close to multi-decade low yield spreads, while the dollar has weakened following comments from President Trump regarding its value [6] - The jobs market remains delicate, with elevated corporate layoff announcements despite a strong January payrolls report [7] Upcoming Events - A series of investor conferences are scheduled, where executives will face tough questions regarding their economic and cultural stances, which could impact market perceptions [8][10][11][12][13][14]

Core Viewpoint - The company has undergone a significant transformation from a business-intelligence software provider to a publicly traded entity focused on Bitcoin [1] Group 1: Company Transformation - The company started as a business-intelligence software company [1] - It has evolved into a publicly traded Bitcoin entity, indicating a dramatic shift in its business model [1]

Salesforce (CRM) has entered into a definitive agreement to acquire Cimulate, a rising player in AI-powered product discovery and agentic commerce, according to the company announcement. The deal is expected to close in the first quarter of fiscal year 2027, subject to customary closing conditions. The acquisition brings some interesting firepower to Salesforce's Agentforce Commerce platform. Cimulate specializes in intent-aware search technology that goes way beyond basic keyword matching. More News fr ...

Core Insights - Unity Software reported Q4 2025 non-GAAP EPS of 24 cents, a significant improvement from a loss of 30 cents in the same quarter last year, exceeding the Zacks Consensus Estimate by 20% [1] - The company's net revenues reached $503.09 million, reflecting a 10% year-over-year increase and surpassing the consensus mark by 2.21% [1] Revenue Breakdown - Create Solutions generated revenues of $165 million, an 8% increase year over year; excluding $10 million in non-strategic revenue from Q4 2024, the growth was 16% driven by strong subscription revenue [2] - Grow Solutions revenues were $338 million, up 11% year over year; Unity Vector accounted for 56% of total Grow Solutions revenues and achieved mid-teens sequential revenue growth for the third consecutive quarter [3] Operating Performance - Non-GAAP gross profit increased by 8.9% year over year to $415 million, with an adjusted gross margin of 82%, down 100 basis points year over year [4] - Research & development expenses rose 7.9% year over year to $143.8 million, while as a percentage of revenues, it contracted 100 basis points to 28% [4] - Sales and marketing expenses increased by 0.7% year over year to $103.8 million, with a percentage of revenues contracting 200 basis points to 21% [5] - General & administrative expenses grew 10.2% year over year to $42.6 million, remaining flat at 8% as a percentage of revenues [5] - Adjusted EBITDA was reported at $125 million, a 17.7% increase year over year, with an adjusted EBITDA margin of 25%, improving by 200 basis points compared to the prior year [6] Balance Sheet & Cash Flow - As of December 31, 2025, Unity had cash and cash equivalents of $2.06 billion, up from $1.91 billion as of September 30, 2025 [7] - Operating cash flow for the quarter was $121 million, an increase from $112 million in the year-ago quarter; free cash flow was $119 million compared to $106 million in the prior year, with a free cash flow margin of 24% [8] - For the full year 2025, Unity generated $404 million in free cash flow, representing a 41% year-over-year growth and converting 99% of adjusted EBITDA to free cash flow [8] - The company successfully refinanced $690 million of its 2026 convertible notes, extending maturities to 2030 [9] Guidance - For Q1 2026, Unity anticipates revenues between $480 million and $490 million; expects flat sequential revenue in Grow, with Vector projected to grow 10% sequentially, and double-digit year-over-year growth in Create, excluding non-strategic revenues [12] - Non-GAAP adjusted EBITDA is expected to be in the range of $105 million to $110 million, indicating an adjusted EBITDA margin expansion of 300 basis points year over year [12]