US Application Software: 1Q26 Off-Quarter Quiet Period Round Up: AI Monetization Path and Disruption Risks in Focus

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US Application Software: 1Q26 Off-Quarter Quiet Period Round Up: AI Monetization Path and Disruption Risks in Focus

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16 Jul 2026 06:57:49 ET │ 19 pages

US Application Software

1Q26 Off-Quarter Quiet Period Round Up: AI Monetization Path and

Disruption Risks in Focus

Steven Enders, CFA AC

CITI'S TAKE +1-415-951-1745

We caught up with IR teams for off-Q companies ahead of quiet period (FQ steven.enders@citi.com

end 7/31). Companies outlined evolving AI strategies including increasing George Kurosawa, CFA

emphasis on consumption/credit systems and agentic offerings.

Competitive concerns around AI disruption were actively downplayed: BOX +1-415-658-4247

cited governance and security as structural insulation, INTU noted george.kurosawa@citi.com

deterministic accuracy requirements of tax prep, ASAN differentiating on

multiplayer agent architecture, and WDAY leaned into platform and data

cloud as underappreciated defensible layers. We feel most confident in BOX

with AI monetization ramping for mission critical workflows, increasing

optimism with ASAN and its expanding TAM with incremental AI

investments, and incremental caution on INTU with estimate risk into FY27.

AI Risks Linger, Monetization Top of Mind — AI monetization remains in early

innings across our conversations, with companies building toward credit- and

consumption-based models while pushing back on disintermediation concerns.

– ASAN: NRR is moving in the right direction with renewals coming in better than

expected, and the product portfolio now grown to five from one over the past

18mo. Further re-accel potential exists as AI Teammates and new vertical apps

(Client Service Management, Service Management) ramp, though PLG recovery

timing remains uncertain with no clear inflection to date.