Industry Overview - Software stocks are experiencing a significant sell-off, with the iShares Expanded Tech-Software Sector ETF (IGV) dropping approximately 5% in morning trading, marking its largest one-day decline since last April [2] - The ETF is now down about 21% from its recent high, indicating that the software industry has entered bear-market territory [2] Company Performance - ServiceNow reported fourth-quarter earnings that exceeded Wall Street expectations, yet its shares fell more than 11% on the day of the announcement [2] - Analysts from Morgan Stanley commented that while ServiceNow's performance was good, it was not sufficient to change the negative narrative surrounding incumbent application vendors [3] Market Sentiment - Investor concerns regarding the potential impact of artificial intelligence on traditional software business models are overshadowing positive earnings reports [3] - The sell-off has also affected major tech companies, with Microsoft experiencing a 10% decline after reporting a slowdown in cloud growth and providing softer-than-expected guidance for operating margins [4]

Polen Capital Management Llc released its "Polen Focus Growth Strategy" Q4 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, the Polen Focus Growth strategy delivered a -1.37% gross return, underperforming the Russell 1000 Growth Index (+1.12%) and the S&P 500 (+2.66%), as concentrated mega‑cap leadership and AI valuation concerns drove market volatility. The fund faced headwinds from market rotation and valuation pressures but remained disciplined in its investment approach, fo ...

Roper Technologies (NasdaqGS:ROP) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Company ParticipantsBrad Reback - Managing DirectorBrent Thill - JefferiesDean Dray - Managing DirectorJason Conley - EVP and CFOJoseph Giordano - Managing DirectorJoshua Tilton - DirectorNeil Hunn - President and CEOTerry Tillman - Managing DirectorZack Moxcey - VP and Head of Investor RelationsConference Call ParticipantsClarke Jeffries - VP and Senior Research AnalystDylan Baker - AnalystGeorge Kurosawa - Equity Research ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $2.06 billion, up 10% year-over-year, with acquisitions contributing 5% and organic growth of 4% [9] - EBITDA reached $818 million, also up 10% over the prior year, with a core EBITDA margin expansion of 60 basis points [9][14] - For the full year 2025, total revenue was $7.9 billion, reflecting a 12% increase, with acquisitions contributing nearly 7% growth [13] - Free cash flow for 2025 was nearly $2.5 billion, up 8%, representing 31% of revenue [15] Business Line Data and Key Metrics Changes - Application software revenue grew 10% in Q4, with organic growth of 4% and EBITDA margins expanding to 42.2% [10] - Network software revenue increased by 14% in Q4, with organic growth of 5%, although margins decreased to 52.8% due to recent acquisitions [11] - Tech segment revenue grew 6% in Q4, with organic growth of 5% and margins holding flat at 34.8% [12] - For the full year, application software revenue grew by 16% in total, with organic revenue growth of 5% [18] Market Data and Key Metrics Changes - The government contracting market remains challenging, impacting Deltek's performance, particularly in perpetual license revenue [11][19] - The freight market experienced a recession throughout 2025, affecting DAT's performance, although the company is evolving into a more automated marketplace [23] Company Strategy and Development Direction - The company is focused on long-term sustainable growth, with a commitment to investing in AI product development and enhancing operational execution [5][6] - Capital allocation strategy includes deploying $3.3 billion towards high-quality vertical software acquisitions and opportunistic share repurchases [8][30] - The company anticipates remaining active in M&A while maintaining discipline on pricing and business quality [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding improvements in the Deltek segment, contingent on government appropriations and market conditions [11][19] - The outlook for 2026 includes expectations for organic growth in the higher end of the mid-singles range, with a conservative approach to guidance [22][28] - AI is viewed as a significant growth driver, with plans to commercialize AI-related products across various business segments [54] Other Important Information - The company has a robust M&A pipeline and substantial financial flexibility, with over $6 billion in capacity for capital deployment in 2026 [16][30] - The company is not assuming a meaningful revenue uplift from AI development in its guidance but views it as an incremental upside [28] Q&A Session Summary Question: What is included in the 2026 guidance for Deltek and how is the company protecting against potential government shutdowns? - Management is not assuming improvement in the Deltek segment for 2026, citing lower organic growth due to perpetual license revenue issues [36] Question: What needs to happen for ProCare to meet expectations? - Management indicated that the primary issue is the slow implementation of software and payments, which is being addressed [38] Question: What segments of government appropriations would significantly impact Deltek? - Management highlighted that appropriations heavy on Defense and DHS funding would positively impact Deltek's customers [43] Question: What is the expected capital deployment for 2026? - Management stated that while there is a $6 billion capacity for capital deployment, the focus will be on high-quality acquisitions rather than a set budget [46] Question: When will the company quantify AI's impact on revenue? - Management expressed that while they aim to report AI-related revenue, they will not "AI wash" their revenue streams and expect AI to be a meaningful growth driver [54]

Core Viewpoint - Strategy, formerly known as MicroStrategy, has transitioned from a data analytics software company to the world's largest corporate holder of Bitcoin, accumulating significant assets in the cryptocurrency market over the past five and a half years [1][2]. Group 1: Bitcoin Investment Strategy - The company began accumulating Bitcoin in August 2020, shifting its focus from its stagnant software business to capitalize on the expected rise in Bitcoin's value [2]. - Bitcoin's price has increased approximately 670% since the company's first disclosed purchase, while Strategy's stock has surged around 1,100% [3]. - As of now, the company has invested $53.9 billion to acquire 709,715 Bitcoins, which are valued at $63.2 billion, exceeding its current enterprise value of $61.3 billion, indicating that its stock may be undervalued [3]. Group 2: Future Plans and Financial Strategy - In late 2024, Strategy announced a "21/21" plan to raise $42 billion, comprising $21 billion in equity and $21 billion in fixed income securities, aimed at funding future Bitcoin purchases [4]. - The company intends to maintain its enterprise software business, which has seen annual revenue declines for the past three years, to generate recurring revenues and cash for Bitcoin acquisitions without investing in new R&D or marketing [5]. - By retaining its software business, Strategy can issue convertible notes and raise capital at lower rates compared to Bitcoin trusts or ETFs, making it a more attractive investment option for institutional investors [6]. Group 3: Risks and Rewards - Strategy's significant investment in Bitcoin has yielded positive results over the past five and a half years, but the company's all-in approach could either lead to substantial gains or potential setbacks [7].

Market Overview - The stock market experienced volatility over the past month, influenced by geopolitical events and tariff discussions [1] - The S&P 500 and Nasdaq saw gains of 0.8% and 0.7% respectively from December 15 to the recent close [1] Top Performing Stocks - **Qnity Electronics**: Increased by 30.1%, driven by strong demand in the semiconductor sector and positive earnings from Taiwan Semiconductor Manufacturing [1] - **Boeing**: Rose by 22.6%, supported by new orders from Ethiopian Airlines and outselling Airbus for the first time since 2018 [1] - **Texas Roadhouse**: Gained 14.1%, with expectations of improved consumer spending due to tax refunds, despite previous margin pressures from cattle inflation [1] Underperforming Stocks - **Salesforce**: Declined by 15.5%, facing challenges from AI-driven disruptions that threaten its business model, although the CEO remains optimistic about AI's role [1] - **CrowdStrike**: Fell by 11.7% after reports of a ban on its software in China due to national security concerns, but the company’s acquisition of SGNL for $740 million is seen as a positive move [1] - **Apple**: Decreased by 11%, attributed to rising memory costs and a shift away from large tech stocks, though a new AI partnership with Alphabet is viewed positively [1]

Enterprise software stocks are starting to look tempting again, at least on a chart. Adobe Inc. (NASDAQ:ADBE) is trading at November 2022 lows and has lost 55% of its value since its February 2024 peak. Salesforce Inc. (NYSE:CRM) sits near May 2024 levels, down about 40% from its January 2025 high. ServiceNow Inc. (NYSE:NOW) is at its lowest since November 2023, off roughly 45% from its January 2025 peak. To many investors, that looks like classic mean reversion. AI hardware stocks like Micron Technology ...

Broadcom Inc. (NASDAQ:AVGO) is included among the 13 Top Tech Stocks Paying Consistent Dividends. AI Boom Drives Sharp Profit Growth at Broadcom (AVGO) Photo by Annie Spratt on Unsplash Broadcom Inc. (NASDAQ:AVGO) has consistently beaten the broader market and is on pace to do it again in 2025, which would mark its sixth straight year of outperformance. The last time the stock lagged the S&P 500 was back in 2019. Even then, the gap was narrow. The index climbed 29% that year, while Broadcom shares rose ...

Oracle Corporation (NYSE:ORCL) is included among the 13 Top Tech Stocks Paying Consistent Dividends. Oracle Says Michigan Data Center Deal Moving Ahead Without Blue Owl On December 17, Oracle Corporation (NYSE:ORCL) said talks around an equity deal for a major data center project in Michigan are “on schedule” and will move forward without Blue Owl Capital. Blue Owl has played a role in financing large data center projects for companies such as Oracle and Meta Platforms in recent months, but it will not b ...

Core Viewpoint - Oracle Corporation is recognized as one of the best stocks to buy in the S&P 500, with varying analyst ratings and price targets reflecting mixed financial performance and future expectations [1][2][3]. Financial Performance - Oracle's diluted EPS for Q2 fiscal 2026 was reported at $2.26, surpassing estimates of $1.64 per share, but revenue, adjusted operating income, and Remaining Performance Obligations (RPO) fell short of Wall Street expectations [3]. - The company's revenue growth and earnings forecast for Q3 also did not meet analysts' estimates, leading to a revised capital expenditure projection of $15 billion higher than initially expected for the full year [4]. Analyst Ratings and Price Targets - Barclays maintains an Overweight rating on Oracle with a price target of $310, while RBC Capital has reduced its price target from $310 to $250, maintaining a Sector Perform rating [1][2]. - As of December 17, the consensus among Wall Street analysts is a Moderate Buy rating, with an average one-year price target of $308.87, indicating a potential upside of 67% [6]. Investment Considerations - Analysts highlight that growth in cloud revenue and RPO is being counterbalanced by negative free cash flow and increased capital expenditures, shifting investor focus towards capital efficiency rather than just revenue growth [5]. - Future share price stability is contingent on Oracle demonstrating capital efficiency, credible free cash flow recovery, and sustained margins [5].