Bloomberg Surveillance · Tuesday, September 1, 2026
The software sector has shown remarkable resilience, with earnings revisions consistently trending upward throughout the year. While valuation multiple compression was a factor earlier, a positioning chase and positive news have led to a strong rebound, with the IGV ETF up significantly in August and major companies like Microsoft also seeing gains.
“If you look at the trend of software earnings, it never wobbled all year long. Earnings revisions continued to be up, and the 12-month forward earnings estimate for software continued to make new highs, actually accelerated in 26th.”
“All of the weakness was driven by valuation multiple compression.”
“IGV up 16% in August. That's quite a month for that index, for that ETF. And as for single names, Microsoft ups something like 9% too. So software, to your point, Danny, has had its moment.”