Dedale Intelligence’s B2B software market update for October 2025: valuations, stock performance, deals & investor insights
Written by :
Matthew Cortez
Miguel Tang
March 11, 2026
September marked a modest gain for B2B software stocks. Our index of 250+ public companies rose +0.7%, trailing the broader indices:
Despite muted recent performance, this follows strong gains in 2024.
By segment, majors (Oracle, Microsoft,etc.) continue to lead the pack, up nearly +30% YTD, while infrastructure and industrial software also posted healthy gains thanks to the AI wave and industrial digitization. On the downside, supply chain management software remains under pressure amid trade and tariff headwinds, while workflow, CRM, and HCM vendors face valuation strain due to anticipated AI disruption.
U.S. inflation rose from 2.7% in July to 2.9% in August; in September, the Federal Reserve cut rates by 25 basis points, marking its first rate cut of the year amid rising concerns over labor market weakness and slowing job growth. In Europe, the ECB kept its deposit rate unchanged at 2.0%, citing weak growth, persistent inflation, and an exceptionally uncertain outlook.
Valuations recovered +5% from August lows, with theB2B software universe now trading at:
High-growth companies (>20% revenue growth) are now valued at 12.6x EV/Sales, the only cohort posting positive YTD gains(+11%).
Mid-growth firms (10–20% growth) trade at 6.4x, while low-growth peers remain near 4.0x.
Rule of 40 companies trade at 11.1x, whilesub-20 companies hover near 3x.
The North America vs. Europe premium widened further to +90% (7.1x vs. 3.7x), driven by stronger expected growth (11% vs. 3%).
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Private equity and corporate M&A activity accelerated sharply in Q3, confirming 2025 as a rebound year.
Mega-deals (> $1B) are returning, reflecting improved debt markets and renewed buyout appetite.
Notable transactions included:
On the venture side, AI continues to dominate funding:
Public listings are gradually reopening, with strong early signs in H2 2025.
Recent IPOs Netskope (Cybersecurity, $500M revenue, +30% growth) and Via Transportation (Mobility software, $300M revenue, +35% growth) illustrate selective investor appetite for high-growth, high-quality assets.
The Fed’s dovish turn supported valuations in North America, while Europe remains hampered by weak growth expectations. The 90% transatlantic premium is at its highest in five years.
Q2 earnings were broadly positive across the board:
AI adaptation, cybersecurity resilience, and cloud transformation remain key earnings themes.
Top names this month:
Dedale Intelligence’s market sessions provide a curated,data-driven lens into what’s really happening in B2B software, from valuations and macro trends to investment signals and segment-level dynamics.
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