The Numbers Tell Two Stories
Software stocks are down 32% year-over-year despite most companies meeting or beating their plans. Meanwhile, the broader market is up roughly 15%. That gap tells you everything about where investor fear sits right now.
The concern isn't current performance. It's future relevance. Anthropic's recent legal AI tool launch was described by the industry as a "shot across the bow." When an AI lab can build legal research capabilities that compete with decades-old data moats, CTOs notice. When those capabilities ship as plugins rather than platforms, CFOs start asking harder questions about software spend.
What's Actually Happening
This isn't an extinction event. It's a repricing of growth assumptions. Software companies still ship value. Enterprises still need purpose-built tools. But the "land and expand" playbook that drove SaaS valuations assumes expansion comes from adding seats and modules. AI agents change that math.
The trade-off: software that agents can use might need fewer human users. Software that agents can't use might not survive. The middle ground, what some are calling "Agent SaaS," is where the smart money is looking.
The Enterprise Reality Check
For APAC CTOs making 2026 planning decisions, the disconnect between stock prices and actual software utility creates opportunity. Vendors are more willing to negotiate. Consolidation pressure means better integration commitments. And despite the panic, your teams still need tools that work.
The real question isn't whether AI will replace software. It's which software companies are building for a world where AI is the interface. Those answers won't come from stock tickers. They'll come from implementations.
Worth noting: this repricing is happening while AI infrastructure spending hits record levels. The money isn't leaving tech. It's repositioning. For enterprise buyers, that's leverage.