Looking back on vertical software stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Doximity (NYSE: DOCS) and its peers.

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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results.

Doximity (NYSE: DOCS)

With over 80% of U.S. physicians as members of its digital community, Doximity (NYSE: DOCS) operates a digital platform that enables physicians and other healthcare professionals to collaborate, stay current with medical news, manage their careers, and conduct virtual patient visits.

Doximity reported revenues of $145.4 million, up 5.1% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with full-year guidance of slowing revenue growth and full-year EBITDA guidance missing analysts’ expectations significantly.

Doximity delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The market seems disappointed with the results as the stock is down 7.2% since reporting and currently trades at $21.71.

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

Best Q1: Adobe (NASDAQ: ADBE)

Originally named after Adobe Creek that ran behind co-founder John Warnock's house, Adobe (NASDAQ: ADBE) develops software products used for digital content creation, document management, and marketing solutions across desktop, mobile, and cloud platforms.

Adobe reported revenues of $6.62 billion, up 12.7% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Adobe pulled off the highest guidance raise and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.3% since reporting. It currently trades at $221.65.

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

Weakest Q1: 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 $308.2 million, up 44.4% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a softer quarter as it posted a significant miss of analysts’ EBITDA estimates and full-year revenue guidance slightly missing analysts’ expectations.

Interestingly, the stock is up 6.9% since the results and currently trades at $33.33.

Read our full analysis of Upstart’s results here.

Cadence Design Systems (NASDAQ: CDNS)

Powering the chips behind everything from smartphones to AI accelerators for over 35 years, Cadence Design Systems (NASDAQ: CDNS) provides essential computational software, hardware, and intellectual property used by engineers to design and verify advanced electronic systems and semiconductors.

Cadence Design Systems reported revenues of $1.47 billion, up 18.7% year on year. This result beat analysts’ expectations by 1.9%. It was a strong quarter as it also recorded a solid beat of analysts’ billings estimates and full-year revenue guidance slightly topping analysts’ expectations.

The stock is up 14.9% since reporting and currently trades at $386.70.

Read our full, actionable report on Cadence Design Systems here, it’s free.

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 $1.63 billion, up 21.9% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly.

Toast had the weakest performance against analyst estimates among its peers. The stock is down 1.8% since reporting and currently trades at $28.84.

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

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.