Live Markets: EU software companies face major earnings test

Capgemini SE

14/04/2026 12:41

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EU SOFTWARE COMPANIES FACE MAJOR EARNINGS TEST

European software stocks head into the Q1 earnings season under pressure, after a bruising year in which share prices have sold off even as profits have broadly held up.

UBS says the group of those stocks it tracks is down 38% over the past 12 months, including a steep 27% drop in Q1 alone.

The bank warns that earnings resilience may be tested this time. It sees risks of bookings and licence softness at names such as SAP SAPG.DE and Dassault Systemes DAST.PA due to disruption from the conflict in the Gulf, with both also exposed to sectors sensitive to the surge in oil prices.

Beyond near-term numbers, UBS analysts including Michael Briest say investors are increasingly focused on whether established software groups can defend their long-term relevance as artificial intelligence reshapes the industry.

   They say investors "fear third party agent platforms will sit atop systems of record and become the system of action/engagement, relegating the incumbents to a subservient role, or that customers will exploit AI-based coding to develop more of their own solutions," they write.

That debate will likely take time to resolve, UBS says, keeping sentiment fragile even where results meet expectations.

SAP and Dassault kick off the European software reporting season with results on April 23, followed by Capgemini CAPP.PA and Nemetschek NEKG.DE on April 30, Amadeus AMA.MC on May 8 and Sage SGE.L on May 21.

(Danilo Masoni)

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EARLIER ON LIVE MARKETS:

HALF-TIME IN EUROPE: STOCKS BUOYANT CLICK HERE

MARCH SET TO POST BIGGEST ENERGY INFLATION IN 25 YEARS, UBS SAYS CLICK HERE

A LESS-SUPPORTIVE LIQUIDITY ENVIRONMENT CLICK HERE

EUROPEAN STOCKS HIGHER, COMPANIES FLAG CONFLICT HIT CLICK HERE

EUROPE BEFORE THE BELL: OPTIMISTIC MARKETS CLICK HERE

FINGERS CROSSED FOR A RESOLUTION CLICK HERE

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