Leading global software companies are undergoing one of the most brutal re-ratings in recent years as investors fret about the possibility of autonomous AI agents disrupting their traditional high-margin subscription model. It doesn’t help when the newly minted Fed chair, Kevin Warsh, has taken a hawkish stance on interest rates, having held rates steady between 3.5% and 3.75% in June. These headwinds are setting a massive disconnect between the prevailing market narrative and the actual operational realities of some of these high-growth software companies. We check out their fundamentals that Wall Street is ignoring – and you shouldn’t.

ServiceNow (NYSE: NOW) – The Software Compounder

ServiceNow has plunged roughly 50% from its 52-week high of US$210 per share to US$105, a decline which is hard to ignore for investors. However, what is harder to ignore are its hyper-growth engines. In the first quarter of 2026 (1Q2026), ServiceNow’s subscription revenue grew 22% year on year (YoY) to US$3.67 billion, driving non-GAAP free cash flow (FCF) up 12.7% to US$1.67 billion....