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Just For You Amid the "SaaS Apocalypse", These 3 Names Are Boosting BuybacksReported by Leo Miller. Originally Published: 2/16/2026. 
Key Points - The massive decline in software stocks, dubbed the "SaaS Apocalypse," has left many names deeply in the red during 2026.
- However, three software names are expressing confidence going forward, increasing their buyback capacity.
- Two names now have buyback authorizations equal to 9% or more of their market caps.
- Special Report: [Sponsorship-Ad-6-Format3]
The rout in software stocks has yet to see a meaningful reprieve. The iShares Expanded Tech-Software Sector ETF (BATS: IGV), a common proxy for the industry's performance, is down nearly 22% in 2026. Amid this weakness, several software companies are taking a confidence-inspiring step: announcing sizable share buyback authorizations. For these beaten-down names, buybacks signal management's belief that the market is undervaluing their shares. DT: Limiting 2026 Losses and Expanding Buyback Firepower First up is observability-platform provider Dynatrace (NYSE: DT). Its software helps customers monitor critical application performance, identify bottlenecks and resolve issues that affect business operations. Dynatrace has held up better than many peers in 2026, down only about 14% so far. That resilience followed the firm's latest earnings report, in which it beat sales and adjusted EPS estimates. The stock gained about 7% after the results, though it remains roughly 40% below its 52-week high. Most notably, Dynatrace announced a $1 billion share repurchase authorization — roughly 9% of its ~ $11 billion market capitalization. That's double the size of the previous authorization from May 2024, when the shares traded at a higher level. The company said the new program underscores "the view that our shares are undervalued." PEGA's Buyback Capacity Tops 10% of Market Cap Pegasystems (NASDAQ: PEGA) has fared worse in 2026, with shares down about 26% year to date. The company provides business-process-management software that helps clients automate internal workflows. Its GenAI Blueprint tool enables companies to build or improve tools with minimal coding, a potentially significant advantage as AI reshapes development. Despite beating estimates on sales and adjusted EPS, Pegasystems shares fell nearly 12% after the report, as its 2026 guidance may have disappointed some investors. Pega also announced an additional $1 billion buyback authorization — about 13.5% of its roughly $7.4 billion market cap. The company said the authorization "reflects our confidence in the durability of our cash flows and our commitment to disciplined capital allocation." Even without extensive detail, the program's size relative to market cap suggests management believes the shares are attractively priced. Down 30% in 2026, SHOP Unveils $2 Billion Buyback Finally, e-commerce platform Shopify (NASDAQ: SHOP) has been a notable loser in 2026, off roughly 30%. Shopify's tools let businesses build and run direct-to-consumer e-commerce platforms, and the company has seen strong growth. Shopify has reported revenue growth of at least 20% year over year for 14 consecutive quarters. The company also beat sales and earnings estimates in its latest report, yet the stock fell more than 6% in each of the two subsequent trading days. Alongside its earnings, Shopify announced a $2 billion buyback authorization. While larger in absolute terms than the DT and PEGA programs, it represents only about 1.4% of Shopify's roughly $146 billion market capitalization. Still, it is a positive signal—particularly since there appears to be no prior record of a Shopify share-repurchase program. Buybacks: A Positive Signal, but Not a Cure-All These buyback announcements are constructive: they show managements willing to use capital to support their shares. But investors should remain mindful of the broader challenges facing the software industry. Markets are increasingly concerned that incumbents' growth could be constrained by the rapid emergence of new artificial-intelligence tools. That pressure may persist as more AI capabilities are released, so investors should be selective if attempting to "buy the dip" in software stocks.
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