April 2026 Market Intelligence

Monthly Insights on the B2B Software Market

Our April 2026 Market Update captures a market under sustained pressure: valuations have continued their sharp decline, reaching multi-year lows not seen since early 2017, while a polarized deal environment sees AI capital concentrating in mega-rounds even as broader M&A activity remains sluggish.

• The numbers are stark: the B2B Software Universe fell 4.8% in March, now down 22.2% year-to-date, significantly underperforming the S&P 500 (-4.6% YTD) and Nasdaq (-7.1% YTD). EV/Sales multiples have dropped further to 4.0x, down 29% from 5.6x at the start of the year and well below the 10-year average of 6.6x.
• On the deals side, venture capital has already surpassed the full-year 2025 total in deal value just three months in, driven by landmark AI financings, yet deal count across VC, PE and M&A was lower in Q1 2026 than the same period last year.
• Earnings told a more resilient story: 18 out of 18 B2B software companies tracked reported year-over-year revenue growth in Q4 2025, with 16 of those beating consensus, though market reactions were mixed based on forward guidance.

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Download the full April 2026 Market Intelligence briefing to access the complete analysis and data behind this month's insights.

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What we analyze in this month's report

Valuation compression deepening across all segments

‍The B2B Software Universe is now down 22.2% year-to-date, with all segments in negative territory. EV/Sales multiples have fallen to 4.0x, their lowest level since Q1 2017, while EV/EBITDA has declined to 14.1x, well below the decade average of 27.3x. We examine the structural dynamics behind this prolonged reset and what it means for how the market is re-pricing growth versus profitability.

Healthcare software: this month's deep dive‍

Our segment spotlight focuses on healthcare software, one of the more structurally complex verticals in B2B tech, shaped by regulatory constraints, fragmented incumbents, and increasing AI-driven disruption in clinical workflow and patient management tools.

A polarized deal environment

‍VC deal value has already surpassed the entirety of 2025 driven by outsized AI financings, while private equity activity showed higher deal value year-over-year on the back of select large take-privates like Dayforce. Corporate M&A, however, remains cautious, both deal count and deal value in Q1 2026 came in below Q1 2025 levels.

Earnings resilience, mixed market reaction

‍Q4 2025 earnings were broadly strong: 18/18 companies tracked delivered year-over-year revenue growth, with 16 beating consensus. But stock performance diverged sharply, with CrowdStrike rewarded for record ARR metrics while MongoDB sold off on weaker forward guidance.

IPOs remain muted

‍B2B software listings in March fell below historical averages, with declining SaaS valuations, AI disruption uncertainty, and the recent underperformance of tech IPOs all weighing on issuance appetite.

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Why this matters

The B2B technology sector is in the middle of a prolonged valuation reset, one driven not just by macro headwinds, but by a structural reassessment of where durable growth and margin durability exist across the software stack. As capital concentrates around AI infrastructure plays and earnings diverge along guidance quality lines, the ability to identify which software categories are defensible, and which are exposed, becomes critical.

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Download the full April 2026 Market Intelligence briefing to access our latest data, analysis and sector insights, or contact our team to discuss the findings in more detail.