BNP Paribas analyst Stefan Slowinski highlighted improving fundamentals for software stocks, pointing to rising hiring demand and upcoming industry events as key catalysts shaping investor sentiment.

Hiring Trends Signal Underlying Strength

Slowinski emphasized that demand for software engineers continues to rise, with hiring up 18% year over year.

He noted that Atlassian Corp.’s (NASDAQ:TEAM) shares surged 30% after strong results driven by seat growth, reinforcing the view that AI could expand both seat-based and consumption-based opportunities.

He added that broader adoption of software across enterprises may require more engineers and tools, while AI-driven customer engagement could also boost Sales and Marketing functions.

Despite this backdrop, he believes the market has become overly negative on some software vendors.

AI Debate To Dominate Investor Events

Slowinski expects AI to remain a central theme at this week’s ServiceNow, Inc. (NYSE:NOW), International Business Machines Corp. (NYSE:IBM), and Atlassian conferences and analyst days.

However, he does not anticipate major AI monetization milestones. Instead, he believes companies will focus on outlining AI strategies following recent developments in agentic coding tools.

He added that investors are unlikely to find clear evidence that challenges bearish Software-as-a-Service (SaaS) narratives, though hiring data offers some support.

Product Roadmaps And Customer Data In Focus

Slowinski expects companies to use these events to detail product pipelines and highlight customer use cases that could signal future growth catalysts.

He noted that investors will pay close attention to updates on pricing, packaging, and adoption trends, particularly for AI offerings.

He also plans to assess enterprise AI adoption trends through discussions with customers and sales teams, as companies position themselves for potential revenue acceleration in the coming years.

Price Action: IBM shares were down 0.70% at $230.57, ServiceNow shares were up 2.57% at $93.50, and Atlassian shares were up 6.84% at $94.95 at the time of publication on Monday, according to Benzinga Pro data.

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