From Nasdaq: 2025-03-28 09:44:00

The Zacks Equity Research discusses the software industry’s uncertainty due to global macroeconomic conditions. However, companies like Microsoft Corp., Open Text Corp., and ACI Worldwide, Inc. are well-positioned to benefit from digital transformation. The industry is evolving, with trends like AI, cloud computing, and cybersecurity driving growth.

Software industry trends include higher spending on AI and cloud computing, leading to increased demand for AI-powered software tools. The industry is expected to grow by 14.2% in 2025, driven by AI hardware upgrades. Cybersecurity focus is also increasing due to advanced technologies like AI and IoT, driving demand for security software.

Global macroeconomic headwinds remain a concern, with volatile supply chain dynamics impacting the software industry. Inflation and uncertainty in business visibility could hinder industry performance. The Zacks Computer Software industry has a Zacks Industry Rank of #135, indicating dull prospects in the near term.

ACI Worldwide, a payment orchestration software provider, reported revenue growth of 10% in 2024. The company’s focus on modernization and payments hub products is driving growth. Open Text Corp. is focusing on cloud, security, and AI solutions, with a next-generation platform expected in 2025. Microsoft dominates the PC software market but faces challenges in the cloud space.

ACI Worldwide, Open Text Corp., and Microsoft are top software stocks to watch. ACI Worldwide reported revenue growth of 10% in 2024, while Open Text Corp. is pivoting towards cloud solutions. Microsoft is seeing growth in AI business but faces challenges in the cloud space. The industry is underperforming the broader sector and S&P 500.



Read more at Nasdaq: Zacks Industry Outlook Highlights Microsoft, Open Text and ACI Worldwide