Software Development Stocks Q4 Results: Benchmarking Twilio (NYSE:TWLO)

Wrapping up Q4 earnings, we look at the numbers and key takeaways for the software development stocks, including Twilio (NYSE:TWLO) 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 strong Q4. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.

Luckily, software development stocks have performed well with share prices up 28.8% on average since the latest earnings results.

Twilio (NYSE:TWLO)

Known for the clever "Twilio Magic" demo that had developers creating functioning communications apps in minutes, Twilio (NYSE:TWLO) provides a platform that enables businesses to communicate with their customers through voice, messaging, email, and other digital channels.

Twilio reported revenues of $1.37 billion, up 14.3% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with revenue guidance for next quarter beating analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Interestingly, the stock is up 17.9% since reporting and currently trades at $130.17.

Is now the time to buy Twilio? Access our full analysis of the earnings results here, it’s free.

Best Q4: Fastly (NASDAQ:FSLY)

Taking its name from the core advantage it delivers to customers, Fastly (NYSE: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 $172.6 million, up 22.8% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 261% since reporting. It currently trades at $33.60.

Is now the time to buy Fastly? Access our full analysis of the earnings results here, it’s free.

Slowest Q4: Nutanix (NASDAQ:NTNX)

Originally pioneering hyperconverged infrastructure to break down traditional data center silos, Nutanix (NASDAQ:NTNX) provides a unified software platform that enables organizations to run applications and manage data across private, public, and hybrid cloud environments.

Nutanix reported revenues of $722.8 million, up 10.4% year on year, exceeding analysts’ expectations by 1.8%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ billings estimates.

Interestingly, the stock is up 6.7% since the results and currently trades at $41.02.

Read our full analysis of Nutanix’s results here.

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 $145.3 million, up 25.2% year on year. This print topped analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EBITDA estimates.

The company added 47 enterprise customers paying more than $100,000 annually to reach a total of 1,168. The stock is down 5.3% since reporting and currently trades at $50.49.

Read our full, actionable report on JFrog here, it’s free.

Cloudflare (NYSE:NET)

With a massive network spanning more than 310 cities in over 120 countries, Cloudflare (NYSE:NET) provides a global network that delivers security, performance and reliability services to protect websites, applications, and corporate networks.

Cloudflare reported revenues of $614.5 million, up 33.6% year on year. This number beat analysts’ expectations by 4.1%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.

Cloudflare pulled off the fastest revenue growth among its peers. The stock is up 17.5% since reporting and currently trades at $211.50.

Read our full, actionable report on Cloudflare here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.