US Software Sector Booms in August: Top Stocks Shine
The US software sector outperformed the broader market in August 2026, with the iShares Expanded Tech-Software Sector ETF (IGV) rising over 16% and the S&P 500 Index gaining about 2.6%. The sector's growth is driven by companies that generate recurring revenue through subscriptions or long-term contracts.
Among the notable software-concept stocks in the US market are Palantir (PLTR), Salesforce (CRM), ServiceNow (NOW), and Snowflake (SNOW). Palantir's second-quarter revenue came in at $1.935 billion, up 93% year-over-year, while Salesforce reported $11.345 billion in revenue, up 11%. ServiceNow's subscription revenue reached $3.877 billion, up 24.5%, and Snowflake's product revenue was $1.492 billion, up 37%
Palantir attributed its growth to the expanding adoption of AIP, but has not yet disclosed standalone AIP revenue. Salesforce's Agentforce ARR exceeded $1.5 billion, providing a clear metric for AI commercialization. ServiceNow's AI business ACV topped $1 billion, and Snowflake's product adoption drove data usage growth.