Five Guys Extends Partnership with SoundHound AI

What Happened?

A number of stocks traded in opposite directions in the afternoon session after geopolitical tensions between the United States and the European Union escalated, sparking fears of a renewed trade war. 

The broader markets adopted a "risk-off" mode, with investors seeking safe-haven assets amidst the uncertainty. The market's primary fear gauge, the VIX, jumped to a fresh eight-week high, signaling rising investor anxiety. 

The dispute, centered on Greenland, raised the possibility of a revived trade conflict, which could disrupt global supply chains and economic activity. 

Mega-cap technology stocks, many of which have significant international sales and operations, were particularly affected by the souring risk sentiment as a potential trade war threatened their global business models.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Developer Operations company GitLab fell 0.9%. Is now the time to buy GitLab? Access our full analysis report here, it’s free.
• Advertising Software company DoubleVerify jumped 0.7%. Is now the time to buy DoubleVerify? Access our full analysis report here, it’s free.
• Data Analytics company Samsara fell 7%. Is now the time to buy Samsara? Access our full analysis report here, it’s free.
• Automation Software company SoundHound AI fell 2.4%. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.
• Video Conferencing company 8x8 fell 2.7%. Is now the time to buy 8x8? Access our full analysis report here, it’s free.

Zooming In On Samsara (IOT)

Samsara’s shares are very volatile and have had 23 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 12 days ago when the stock dropped 6.3% on the news that a broader market rotation out of the technology sector led to profit-taking following a recent rally. 

The move was part of a wider trend that saw high-growth technology stocks fall, with the Nasdaq experiencing the sharpest decline among the major indices. Multiple reports indicated that traders were locking in profits, particularly from the artificial-intelligence trade, which had previously seen a strong run-up. This market action represented a shift in investor focus, as money moved out of tech. 

Defense stocks emerged as the primary beneficiary of this capital shift, surging after President Trump proposed a massive $1.5 trillion defense budget for 2027. Major contractors rallied on the news, with Northrop Grumman jumping over 10% and Lockheed Martin gaining nearly 8%, providing a counterbalance to the tech slump that kept the S&P 500 flat. The rotation into heavy industry was further supported by a stabilization in energy markets, as crude prices rebounded.

Samsara is down 4.8% since the beginning of the year, and at $32.28 per share, it is trading 47% below its 52-week high of $60.96 from February 2025. Investors who bought $1,000 worth of Samsara’s shares at the IPO in December 2021 would now be looking at an investment worth $1,307.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how automation software stocks fared in Q3, starting with SoundHound AI .

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 7 automation software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.7% since the latest earnings results.

Weakest Q3: SoundHound AI

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year. This print exceeded analysts’ expectations by 2.7%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EBITDA and billings estimates.

SoundHound AI scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 8.2% since reporting and currently trades at $11.17.

Read our full report on SoundHound AI here, it’s free.

Best Q3: Pegasystems

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.

Pegasystems achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8.2% since reporting. It currently trades at $52.38.

UiPath

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

UiPath reported revenues of $411.1 million, up 15.9% year on year, exceeding analysts’ expectations by 4.7%. It was a satisfactory quarter as it also posted an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

As expected, the stock is down 4.8% since the results and currently trades at $14.33.

Read our full analysis of UiPath’s results here.

Appian

Powering billions of transactions daily since its founding in 1999, Appian provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge.

Appian reported revenues of $187 million, up 21.4% year on year. This number topped analysts’ expectations by 7.4%. It was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 2.1% since reporting and currently trades at $28.70.

Read our full, actionable report on Appian here, it’s free.

Microsoft

Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide.

Microsoft reported revenues of $77.67 billion, up 18.4% year on year. This result beat analysts’ expectations by 2.9%. Overall, it was a very strong quarter as it also recorded a narrow beat of analysts’ revenue estimates, as the beat in Intelligent Cloud and Business Services trumped the miss in Personal Computing and a solid beat of analysts’ revenue estimates.

The stock is down 15.3% since reporting and currently trades at $460.52.

Read our full, actionable report on Microsoft here, it’s free.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Jamf and the rest of the automation software stocks fared in Q3.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

The 7 automation software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.4% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.7% since the latest earnings results.

Jamf

With its name playfully derived from "Just Another Management Framework," Jamf provides software that helps organizations deploy, manage, and secure Apple devices across their workforce while maintaining a seamless user experience.

Jamf reported revenues of $183.5 million, up 15.2% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Jamf delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 1.4% since reporting and currently trades at $13.04.

Best Q3: Pegasystems

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 8% since reporting. It currently trades at $52.47.

Weakest Q3: SoundHound AI

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 22.4% since the results and currently trades at $11.14.

Read our full analysis of SoundHound AI’s results here.

UiPath

Starting with robotic process automation (RPA) and evolving into a comprehensive automation powerhouse, UiPath provides an AI-powered business automation platform that enables organizations to create software robots that mimic human actions to streamline repetitive tasks and processes.

UiPath reported revenues of $411.1 million, up 15.9% year on year. This print surpassed analysts’ expectations by 4.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

The stock is down 4.9% since reporting and currently trades at $14.32.

Read our full, actionable report on UiPath here, it’s free.

ServiceNow

Built on a single code base that processes over 4 billion workflow transactions daily, ServiceNow provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security.

ServiceNow reported revenues of $3.41 billion, up 21.8% year on year. This number topped analysts’ expectations by 1.4%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.

ServiceNow had the weakest performance against analyst estimates among its peers. The stock is down 30.2% since reporting and currently trades at $127.20.

Read our full, actionable report on ServiceNow here, it’s free.

Let’s dig into the relative performance of Asana and its peers as we unravel the now-completed Q3 productivity software earnings season.

Rising employee costs and the shift to more remote work has increased the ever-present pressure to improve corporate productivity, which in turn has driven rising demand for productivity software that enables remote work, streamline project management and automate business tasks.

The 17 productivity software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% since the latest earnings results.

Asana

Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.

Asana reported revenues of $201 million, up 9.3% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

The stock is down 13.9% since reporting and currently trades at $11.58.

Best Q3: Pegasystems

With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes.

Pegasystems reported revenues of $381.4 million, up 17.3% year on year, outperforming analysts’ expectations by 8.5%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

Pegasystems scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $53.22.

Weakest Q3: SoundHound AI

Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services.

SoundHound AI reported revenues of $42.05 million, up 67.6% year on year, exceeding analysts’ expectations by 2.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and a miss of analysts’ billings estimates.

As expected, the stock is down 23.5% since the results and currently trades at $10.99.

Read our full analysis of SoundHound AI’s results here.

monday.com

With its colorful interface of boards, columns, and automation that replaced the chaos of spreadsheets, monday.com is a cloud-based work operating system that helps teams manage projects, track tasks, and streamline workflows through customizable interfaces.

monday.com reported revenues of $316.9 million, up 26.2% year on year. This number surpassed analysts’ expectations by 1.4%. Aside from that, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The company added 291 enterprise customers paying more than $50,000 annually to reach a total of 3,993. The stock is down 29.5% since reporting and currently trades at $133.75.

Read our full, actionable report on monday.com here, it’s free.

Atlassian

Started by two Australian university friends who funded their startup with credit cards, Atlassian provides software tools that help teams plan, track, collaborate, and share knowledge across organizations.

Atlassian reported revenues of $1.43 billion, up 20.6% year on year. This print topped analysts’ expectations by 2.2%. More broadly, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ billings estimates.

Atlassian had the weakest full-year guidance update among its peers. The stock is down 20% since reporting and currently trades at $128.58.

Read our full, actionable report on Atlassian here, it’s free.