Digital Download – 2Q26 results season awaits

Research evidence excerpt

Digital Download – 2Q26 results season awaits

EUROPE | Software EquityJuneResearch28, 2026

Chart 1 - Coverage ValuationDigital Download – 2Q26 results season

awaits JEFeCY26P/E CY27

AMS 15x 14x

Sentiment feels like it has retraced to lows seen earlier in the year. BYIT 18x 17x CAP 7x 6x

Sentiment is so one-sided that it seems likely to us that we will get a CCC 21x 19x

valuation recovery. Looking forwards, we are starting to focus on 2Q26 DSYGBG 13x11x 12x9x

results season. We think 2Q results are unlikely to de-risk the year and, as a NEM 21x 17x

result, it is unlikely to be a decisive turning point. SAPSCT 19x24x 16x22x

SGE 16x 14x

More pressure: The average share price performance of the 24 companies we track across .Source:TEMNJefferies, Factset 17x 16x

the sector was +0.7%. However, share prices across the sector have struggled all year on AI

uncertainties. The fact that share prices only rallied 0.7% in a week where the SOX was -5% and

press reports suggest that OpenAI may push an IPO out to 2027, speaks volumes for weak Chart 2 - Coverage Ratings

sentiment towards Software and Services. Sentiment is so universally cautious, we feel mean Coverage Ratings

reversion should lead to a valuation correction from here. Looking at the YTD trends, the 24 AMS BUY

companies we track are down 11%, underperforming the broader market - Stoxx Euro 600 - BYIT HOLD

by c19%. CAP HOLD

CCC BUY

Looking ahead to 2Q26 results season: Our touch points across the sector point to less Middle DSY UNPF

Eastern concern compared to 1Q26. That said, recent results from Accenture which called out GBG BUY

a c$100m revenue impact from the Middle East shows that residual risks remain. Furthermore, NEM BUY

the sector is typically 2H weighted.