From Nasdaq: 2025-06-18 10:10:00

The computer software industry is thriving due to the global digital transformation drive, with cloud and SaaS models driving growth. AI and ML integration are key trends, with the global software market projected to reach $1,397.31 billion by 2030. Industry leaders like Intuit, Adobe, and Pegasystems are well-positioned, despite macroeconomic uncertainties and competition concerns.

Three trends shaping the future of the software industry include higher spending on AI and cloud, increased cybersecurity focus, and macroeconomic headwinds. Worldwide IT spending is projected to grow 9.8% in 2025, with software expected to grow 14.2%. The industry’s Zacks Industry Rank #30 indicates strong prospects, with outperformance compared to the sector and S&P 500.

Software companies like Intuit, Adobe, and Pegasystems are poised for growth. Intuit’s shift to a cloud-based subscription model led to a 15.1% revenue increase in Q3 fiscal 2025. Adobe’s diverse software solutions saw a revenue increase of 11% in the last reported quarter. Pegasystems’ GenAI Blueprint and Customer Decision Hub solutions are driving top-line growth, with a 44% revenue increase in Q1 2025.

Intuit, Adobe, and Pegasystems are recommended as strong software stocks to consider. Intuit’s revenue growth and AI integration, Adobe’s innovative solutions, and Pegasystems’ focus on AI-driven products make them attractive investments. Zacks ranks Intuit as #1 (Strong Buy) with a projected earnings growth of 18.4%. Adobe and Pegasystems carry Zacks Rank #2 (Buy) with earnings growth projections of 11.8% and 19.1%, respectively.



Read more at Nasdaq: 3 Software Stocks to Watch as Industry Witnesses Strong Tailwinds