Palantir reported Q1 2026 revenue of $1.633B, up 85% YoY, the highest growth rate in its public history. US commercial revenue hit $595M, up 133% YoY, with 47 deals over $10M in the quarter. Rule of 40 sits at 145%.
ServiceNow sits at 98% Gross Revenue Retention, Workday at 97%, both top of the public B2B SaaS stack. The numbers look solid. The problem: three-year contracts mean customers cannot leave even when they want to. That retention is structural, not earned, and it hides decay until renewal time hits.
Atlassian posted Q3 revenue of $1.79B, up 32% year-over-year, beating estimates and sending shares up 15% in after-hours trading. Cloud revenue hit $1.13B (up 29%), while the company guides full-year revenue growth at 22%. Worth noting: this comes two months after cutting 1,600 jobs in an AI restructure.
Two SaaS bellwethers just accelerated at scale, something that almost never happens. Atlassian added $400M in quarterly revenue year-on-year. Twilio hit its fastest growth in three years. Both stocks ripped 20% on the prints, but context matters: they are still down 65% and 40% respectively from highs.
ServiceNow holds 98% renewal rates. CrowdStrike sits at 97% GRR. Workday clears 95% consistently. These moats are real, but they only stop customers leaving. They do not capture AI budget. That is the problem.
Salesforce shed 1.2 million square feet in San Francisco, dropping from #1 to #3 tenant. OpenAI and Anthropic combined now occupy 2.15M sq ft, more than double Salesforce's current footprint. The shift maps where enterprise software headcount is actually growing.
Private equity firm Thoma Bravo handed Medallia back to creditors after a $5.1 billion equity wipeout, three years after the $6.4B take-private. The wider story: AI agents are choosing which software vendors and models they prefer, and those choices are reshaping enterprise software valuations. OpenAI is gaining ground because agents prefer its API, not because humans like the interface better.
Mastercard ran live trials in ANZ where AI agents analysed business data, made payment decisions, and executed transactions without requiring human sign-off. The trials involved Hnry, MYOB, and Pay.com.au. Target market: SMEs spending 10-20 hours weekly on payment admin.
One-third of Australian SMEs now use AI, but most are juggling chaotic piles of logins and half-adopted copilots instead of strategic workflows. The pitch: less AI, not more, might actually drive better outcomes for small sales teams drowning in subscriptions.
Gartner revised its 2026 software forecast up for the third time in six months. Total software spend now projected at $1.44 trillion, growing 15.1%. That is $190 billion in net new budget this year. If your company is growing slower than 15%, you are losing share.
Meta is cutting 8,000 employees while spending $115bn on AI. Microsoft is offering buyouts to 8,750 US workers while dropping $22bn per quarter on data centres. Analysts call it AI washing: using automation as cover for cost cuts that might not be about efficiency at all.
ServiceNow dropped 15% after beating revenue guidance. IBM fell 10%. Salesforce down 7%. The carnage hit every seat-based SaaS company, but infrastructure plays like Cloudflare and MongoDB are up 60% to 230% over 12 months. The market is repricing one specific business model: per-seat workflow software that agents can replace.