Overview
- The long slide in enterprise software has at least paused after a strong rebound in May that analysts called the sector's best month in more than two decades.
- Microsoft reported rapid AI traction with paid Copilot users up 250% year over year to 20 million, software revenue growth of 17%, Azure up 39%, and annual recurring AI revenue rising 123%.
- Salesforce posted 13% revenue growth to $11.1 billion and said Agentforce annual recurring revenue topped $1 billion, up 205% year over year, while its stock has fallen about 30% year to date and now trades at a lower valuation.
- ServiceNow is pitching its configuration management database as a durable system of record that can anchor an 'agentic' AI orchestration platform and protect workflow‑tied monetization from per‑seat risks.
- The takeaway for investors and customers is a narrower, selective opportunity: valuations have reset enough to invite buy‑the‑dip strategies for firms showing measurable AI monetization and embedded data or workflow moats.