As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including JFrog (NASDAQ:FROG) and its peers.
As legendary VC investor Marc Andreessen says, "Software is eating the world", and it touches virtually every industry. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming.
The 12 software development stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2% while next quarter’s revenue guidance was 1.8% above.
Luckily, software development stocks have performed well with share prices up 14.1% on average since the latest earnings results.
JFrog (NASDAQ:FROG)
Named after the amphibian that continuously evolves from egg to tadpole to adult, JFrog (NASDAQ:FROG) provides a platform that helps organizations securely create, store, manage, and distribute software packages across any system.
JFrog reported revenues of $163.8 million, up 28.7% year on year. This print exceeded analysts’ expectations by 5.2%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ adjusted operating income estimates.
Interestingly, the stock is up 10.4% since reporting and currently trades at $91.67.
Best Q2: Fastly (NASDAQ:FSLY)
Taking its name from the core advantage it delivers to customers, Fastly (NASDAQ:FSLY) operates an edge cloud platform that processes, secures, and delivers web content as close to end users as possible, enabling faster digital experiences.
Fastly reported revenues of $183.3 million, up 23.3% year on year, outperforming analysts’ expectations by 5.3%. The business had an exceptional quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
Fastly delivered the biggest analyst estimate beat and highest full-year guidance raise in the group. The market seems happy with the results as the stock is up 9.6% since reporting. It currently trades at $28.54.
Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Akamai (NASDAQ:AKAM)
With a massive distributed network spanning 4,100+ points of presence in nearly 130 countries, Akamai Technologies (NASDAQ:AKAM) provides a global distributed cloud platform that helps businesses deliver, secure, and optimize their digital experiences online.
Akamai reported revenues of $1.1 billion, up 5.4% year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted a miss of analysts’ adjusted operating income estimates and full-year revenue guidance meeting analysts’ expectations.
Akamai delivered the weakest performance against analyst estimates and weakest guidance update among its peers. The stock is flat since the results and currently trades at $118.46.
Read our full analysis of Akamai’s results here.
GitLab (NASDAQ:GTLB)
With its all-remote workforce pioneering a new approach to software development, GitLab (NASDAQ:GTLB) provides a single-application DevSecOps platform that helps development, operations, and security teams collaborate to build, secure, and deploy software faster.
GitLab reported revenues of $286.3 million, up 21.3% year on year. This print topped analysts’ expectations by 4.8%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 9% since reporting and currently trades at $49.16.
Read our full, actionable report on GitLab here, it’s free.
Dynatrace (NYSE:DT)
With its platform processing over 30 trillion pieces of IT performance data daily, Dynatrace (NYSE:DT) provides an AI-powered platform that helps organizations monitor, secure, and optimize their applications and IT infrastructure across cloud environments.
Dynatrace reported revenues of $554.5 million, up 16.2% year on year. This number surpassed analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates.
Dynatrace had the weakest full-year guidance update of the whole group. The stock is up 28.6% since reporting and currently trades at $58.78.
Read our full, actionable report on Dynatrace here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.