tech
February 20, 2026
Beaten-down software stocks RingCentral and Five9 rally as earnings quell some AI concerns
Software stocks have been in sell-off mode in recent weeks on fears that new AI tools will uproot their longstanding business models.
TL;DR
- RingCentral shares rose 34% and Five9 shares climbed 12% after their earnings reports.
- Both companies reported that accelerating AI adoption has boosted demand for their customer service solutions.
- Recent fears that AI could displace software-as-a-service business models had led to a selloff in the tech-software sector.
- RingCentral reported its annual recurring revenue from customers using AI tools doubled year over year.
- Five9 reported that its enterprise AI bookings more than doubled from a year ago and its AI portfolio reached $100 million in annual recurring revenue.
- The iShares Expanded Tech-Software Sector ETF has plunged about 23% this year.
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