Snowflake's strong earnings ease 'SaaSpocalypse' fears, lifting software stocks including Dynatrace, Paycom, and Zeta Global

Snowflake surged 35% after reporting AI accounts on its platform jumped from 9,100 to 13,600 in a single quarter, product revenue grew 34%, and full-year guidance was raised by $180 million. The gains spread to other software stocks: ServiceNow gained 5%, Palantir rose nearly 6%, Oracle and Microsoft each added roughly 3%.

The 'SaaSpocalypse' thesis—a rolling selloff that had erased approximately $2 trillion from software market values since late 2025 on fears that autonomous AI agents (self-directed AI software) would replace per-seat software licences—proved overstated. Snowflake's results showed AI instead drove more consumption of its platform, with CFO Brian Robins stating that Cortex Code created a 'step function change' in AI revenue potential and was the single largest driver of the full-year guidance raise.

Dynatrace (cloud monitoring) jumped 4.6%, Paycom (HR software) jumped 4.3%, and Zeta Global (advertising software) jumped 4.4%.