Software stocks face high expectations as earnings season begins, with some top picks poised to impress.

The software sector has gained strong momentum recently, outperforming semiconductor stocks by over 26 percentage points in the past 100 trading days. This surge means software companies now have higher expectations to meet in their upcoming earnings reports. Analysts, including Macquarie's Steve Koenig, highlight certain software stocks like Datadog as potential standouts during this earnings season. Investors will be watching closely to see which companies can deliver strong results amid heightened scrutiny.

As of Oct 28, 2026 22:23 WIB, Datadog Inc (DDOG) trades at USD 278.46 on Pluang, showing a slight decline of 0.84% in the past day. The stock holds a significant market cap of $100.84 billion and experiences a high sell order activity of 83% compared to 17% buy orders. Investors on Pluang typically hold DDOG shares for about 77 days, reflecting cautious positioning ahead of earnings season.