B2B software valuations rise in August, but earnings season triggers a de-rating

B2B software valuations continued to recover in August 2026. The B2B Software Universe rose 11.6% during the month and is now up 4.8% year-to-date, though still lagging the S&P 500 (up 12.3%) and the Nasdaq (up 13.5%). EV/Sales NTM multiples rose to 4.9x, still significantly below the 10-year average of 6.6x and at levels last seen in Q1 2017. Cybersecurity (+43% YTD) and Infrastructure Software (+25% YTD) remain the two largest gainers for the year.

What this month's report covers

Dedale Intelligence's September 2026 Market Session covers five key themes across B2B software and technology markets:

• Valuations and market performance. EV/Sales NTM at 4.9x and EV/EBITDA at 18.5x, with detailed breakdowns across growth cohorts, FCF margin cohorts, Rule of 40 buckets, and geographic premiums. North American software trades at a 94% premium to European peers.
• GovTech segment deep-dive. Dedale Intelligence's survey of local authorities across the US, UK, and France shows security and compliance as the top purchasing criterion for core ERP systems, while AI and product innovation ranks last or near-last everywhere. The report covers the full GovTech deal landscape, where corporate acquirers account for 40 of 73 tracked deals year-to-date.
• Deal activity across PE, corporate M&A, and venture capital. Corporate M&A has reached approximately €18bn in Q3 2026 quarter-to-date, driven by OpenRouter, ArisGlobal, PCI Energy Solutions, and Airtable. Total 2026 YTD AI investment stands at $361bn, already surpassing the full-year 2025 total.
• IPO activity. July saw 32 IPOs and August saw 23, with no significant B2B software listing in either month as more activity shifts to the take-private and M&A side.
• Q2 2026 earnings. Across the 48 companies in Dedale Intelligence's coverage universe, 39 beat consensus and 33 raised guidance, yet only 33 traded up as the market de-rated software on AI disruption fears and hyperscaler capex concerns.

The full report contains detailed valuation tables by segment and cohort, the complete GovTech segment deep-dive including the local-authority survey results and deal-by-deal analysis, the full IPO tracker, earnings tables covering all 48 companies, and the segment zoom covering financials and valuations across the full B2B software universe.