Let’s dig into the relative performance of nCino (NASDAQ: NCNO) and its peers as we unravel the now-completed Q2 vertical software earnings season.

Software is eating the world, and while a large number of solutions such as project management or video conferencing software can be useful to a wide array of industries, some have very specific needs. As a result, vertical software, which addresses industry-specific workflows, is growing and fueled by the pressures to improve productivity, whether it be for a life sciences, education, or banking company.

The 14 vertical software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.5% above.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

nCino (NASDAQ: NCNO)

Born from the internal technology needs of a community bank in 2011, nCino (NASDAQ: NCNO) provides cloud-based software that helps financial institutions streamline client onboarding, loan origination, and account opening processes.

nCino reported revenues of $161 million, up 8.2% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ billings estimates and a solid beat of analysts’ adjusted operating income estimates.

"We delivered an exceptional second quarter of fiscal 2027, once again exceeding all financial guidance. We are seeing many of our largest customers consolidating more of their most critical operations on nCino and expanding their commitments to include our market leading AI capabilities. The confidence behind those commitments reflects a simple reality: deploying AI in financial services demands deep domain context and expertise, and nCino is uniquely positioned to deliver it at scale globally," said Sean Desmond, CEO at nCino.

Interestingly, the stock is up 3.8% since reporting and currently trades at $21.60.

Is now the time to buy nCino? Access our full analysis of the earnings results here, it’s free.

Best Q2: Unity (NYSE: U)

Powering over half of the world's mobile games and expanding into industries from automotive to architecture, Unity (NYSE: U) provides software tools and services that allow developers to create, run, and monetize interactive 2D and 3D content across multiple platforms.

Unity reported revenues of $546.5 million, up 23.9% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with an impressive beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Unity scored the biggest analyst estimate beat of the whole group. The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $42.32.

Is now the time to buy Unity? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Upstart (NASDAQ: UPST)

Using over 2,500 data variables and trained on nearly 82 million repayment events, Upstart (NASDAQ: UPST) is an AI-powered lending platform that uses machine learning to help banks and credit unions more accurately assess borrower risk for personal loans, auto loans, and home equity lines of credit.

Upstart reported revenues of $364.7 million, up 41.7% year on year, exceeding analysts’ expectations by 2.3%. Still, it was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations significantly.

Upstart delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 17.6% since the results and currently trades at $24.98.

Read our full analysis of Upstart’s results here.

Toast (NYSE: TOST)

Born from the frustrations of three friends waiting too long for their restaurant bill, Toast (NYSE: TOST) provides a cloud-based digital technology platform with software, payment processing, and hardware solutions built specifically for restaurants.

Toast reported revenues of $1.91 billion, up 23.1% year on year. This result surpassed analysts’ expectations by 1.8%. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ billings estimates but EBITDA guidance for next quarter slightly missing analysts’ expectations.

The stock is down 7% since reporting and currently trades at $31.44.

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

PTC (NASDAQ: PTC)

Originally known as Parametric Technology Corporation until its 2013 rebranding, PTC (NASDAQ: PTC) provides software that helps manufacturers design, develop, and service physical products through digital solutions for CAD, PLM, ALM, and SLM.

PTC reported revenues of $600 million, down 6.8% year on year. This number missed analysts’ expectations by 1.3%. Overall, it was a slower quarter as it also logged a significant miss of analysts’ billings estimates and a miss of analysts’ annual recurring revenue estimates.

PTC had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $132.68.

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

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.