Can These 5 Internet Software Stocks Hit Targets This Earnings Season?

Internet Software companies are expected to report strong quarterly results driven by sustained demand for digital transformation, cloud computing and AI integration across industries. Businesses and consumers have increased their use of data-driven tools, SaaS models and online platforms in recent quarters. This momentum is likely to have continued into the to-be-reported quarter.

The growing importance of cloud-based infrastructure is likely to have aided the Internet Software stocks’ performance. Companies offering networking, data analytics, cybersecurity and collaboration tools have seen higher demand as organizations shift from outdated systems to hybrid and multi-cloud environments. Moreover, the rapid shift from VPN-based cybersecurity solutions and the growing adoption of zero-trust cybersecurity applications among the clients of these companies are also adding to the prospects of Internet software providers.

Artificial intelligence (AI) and machine learning (ML) capabilities have also increased the value of Internet software solutions. Businesses are using AI to improve customer experiences, automate workflows, and gain insights from large datasets. This is expected to bolster the performance of the Internet software companies.

Per the Grand View Research report, the global software market size was valued at $730.70 billion in 2024 and is expected to reach $1,397.31 billion by 2030, registering a CAGR of 11.3% from 2025 to 2030. Internet Software companies are expected to benefit from this growth.

Amid the ongoing situation, investors interested in the Internet Software industry are eagerly awaiting the earnings releases of players like Astera Labs ALAB, Arista Networks ANET, Match Group MTCH, Paylocity Holdings PCTY, and Pinterest PINS, scheduled for Nov. 4.

Per the Zacks model, a company needs to have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — to increase the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Let’s delve deeper.

Insight Into Key Releases

Astera Labs’ third-quarter 2025 revenues are likely to have benefited from increasing demand for artificial intelligence (AI) servers and data center infrastructure. Strong momentum across its three key product families, Aries, Taurus, and Leo, is likely to have contributed well. 

Astera Labs expects third-quarter 2025 revenues between $203 million and $210 million, suggesting an increase of 6% to 9% year over year.  The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $206.73 million, indicating year-over-year growth of 82.80%.

Earnings are expected to be between 38 cents and 39 cents per share for the third quarter. The consensus mark for earnings is currently pegged at 39 cents per share, unchanged over the past 30 days, and suggests 69.57% year-over-year growth.

However, the stock’s combination of an Earnings ESP of 0.00% and a Zacks Rank #3 makes a surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Astera Labs, Inc. Price and EPS Surprise

Astera Labs, Inc. price-eps-surprise | Astera Labs, Inc. Quote

Arista Networks’ third-quarter performance is expected to have benefited from robust demand across AI, cloud, and enterprise sectors. The company’s focus on AI networking, cloud infrastructure upgrades, and enterprise campus solutions, including the integration of VeloCloud’s SD-WAN technology, is expected to have contributed to its growth in the third quarter of 2025.

For the third quarter of 2025, management expects revenues of approximately $2.25 billion. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $2.26 billion, indicating an increase of 24.83% year-over-year. 

The Zacks Consensus mark for earnings is currently pegged at 72 cents per share, unchanged over the past 30 days, and suggests 20% growth over the figure reported in the year-ago quarter.

The combination of an Earnings ESP of +4.17% and a Zacks Rank #3 increases the odds of an earnings beat for ANET. 

Arista Networks, Inc. Price and EPS Surprise

Arista Networks, Inc. price-eps-surprise | Arista Networks, Inc. Quote

Match Group’s third-quarter performance is expected to have benefited from positive FX impacts and increased marketing spending for Tinder and Hinge. Rising global singles and expanding adoption of online dating provide strong tailwinds, while its diverse brand portfolio is expected to continue attracting and retaining subscribers.

Match Group expects third-quarter 2025 revenues of $910-$920 million, suggesting 2-3% year-over-year growth. The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $915.04 million, indicating an increase of 2.18% year over year.

The Zacks Consensus mark for earnings is currently pegged at 91 cents per share, unchanged over the past 30 days and suggests 74.83% year-over-year growth.

However, the stock’s combination of an Earnings ESP of 0.00% and a Zacks Rank #3 makes a surprise prediction difficult

Match Group Inc. Price and EPS Surprise

Match Group Inc. price-eps-surprise | Match Group Inc. Quote

Paylocity Holdings’ first-quarter fiscal 2026 performance is expected to have benefited from strong demand for its innovative product portfolio. The successful launch of Paylocity for Finance, which integrates finance and HR functions into a unified platform, has been noteworthy. This new offering is expected to drive cross-sell opportunities within its existing client base of more than 41,650 customers and attract new clients.

For the first quarter of fiscal 2026, the company expects total revenues of $397.5-$402.5 million, indicating 10% growth from the year-ago period’s actual. The Zacks Consensus Estimate for the first quarter of fiscal 2026 revenues is currently pegged at $400.36 million, indicating a year-over-year increase of 10.30%.

The Zacks Consensus mark for earnings is currently pegged at $1.50 per share, unchanged over the past 30 days, and suggests a 9.64% year-over-year decline. 

However, the stock’s combination of an Earnings ESP of 0.00% and a Zacks Rank #3 makes a surprise prediction difficult.

Paylocity Holding Corporation Price and EPS Surprise

Paylocity Holding Corporation price-eps-surprise | Paylocity Holding Corporation Quote

Pinterest’s third-quarter 2025 performance is expected to have benefited from sustained user growth, particularly among Gen Z, advancements in AI-powered ad tools like Pinterest Performance+ and expanding monetization in international markets such as Europe and the Rest of the World. Additionally, strong verticals like retail and financial services continue to drive revenue momentum.

For the third quarter of 2025, Pinterest expects revenues in the range of $1.033-$1.053 billion, indicating 15-17% year-over-year growth. The Zacks Consensus Estimate for the third quarter of 2025 revenues is currently pegged at $1.05 million, indicating a year-over-year increase of 16.60%.

The Zacks Consensus mark for earnings is currently pegged at 40 cents per share, which has decreased by a couple of pennies over the past 30 days. 

However, our proven model does not conclusively predict an earnings beat for PINS this earnings season as it has an Earnings ESP of -4.78% and a Zacks Rank #3 at present.

Pinterest, Inc. Price and EPS Surprise

Pinterest, Inc. price-eps-surprise | Pinterest, Inc. Quote

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This article originally published on Zacks Investment Research (zacks.com).

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