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AI Fears Shake Software Debt Markets
18 Feb
Summary
- Software firms preemptively release earnings to reassure lenders.
- AI's rapid advancement poses significant disruption risk to the industry.
- Companies like McAfee and Rocket Software report steady financial performance.
A number of software firms, including McAfee and Rocket Software, have accelerated the release of their financial earnings. This move is intended to demonstrate their resilience to potential disruptions posed by artificial intelligence and to reassure lenders amid market volatility.
McAfee reported preliminary fourth-quarter revenue of $626 million, with adjusted earnings seeing a slight decrease. Rocket Software disclosed a 5.2% rise in 2025 revenue to approximately $1.4 billion, alongside an increase in adjusted earnings. Perforce Software, however, noted a slight decline in annual revenue.
The software industry is experiencing significant shifts due to the rapid advancement of AI, leading to concerns about the viability of corporate debt. This has been termed 'SaaSpocalypse,' triggering a selloff in the industry's debt. Some private lenders are defending the sector, arguing that many companies will actually benefit from AI integration.
Companies like Cloudera have also highlighted recent financial momentum, with strong year-over-year growth in new business and robust annual recurring revenue. These disclosures aim to bolster confidence in the face of an increasingly uncertain market landscape driven by technological change.
