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Alphabet fell roughly 6% and Microsoft slipped as well, pulling down the software sector. nCino fell 2.4%, JFrog fell 3.3%, and Guidewire Software fell 4.2%. The selloff follows Accenture's near-20% single-day drop the previous week after the consulting firm cut its growth outlook and cited AI compressing demand for traditional IT services.
Why it matters
Investors are extending Accenture's signal to software vendors, fearing that AI agents (software that independently makes decisions and performs tasks) will erode the seat-based subscription model that underpins enterprise software economics. Salesforce, which trades around $152, is down roughly 43% year-to-date and near its 52-week low; Adobe fell approximately 49% over the past year. The market appears to be pricing in cannibalization of the legacy subscription base even though these companies have not yet seen it materialize in their income statements.
What to watch
Some analysts see the selling as overdone. Salesforce carries the largest AI revenue line in its category and is acquiring usage-based billing platforms like m3ter to monetize AI agent actions rather than seats, and is retiring 10% of its shares through a $25 billion（約4兆円） buyback. Until software companies can prove that AI revenue scales faster than it erodes the legacy subscription base, the sector may remain under pressure.
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