Since the beginning of the year, AI application software stocks have shown robust performance, with several companies releasing better-than-expected quarterly results, leading to significant stock price increases. Among them, Doximity, Inc.(DOCS.US), Palantir Technologies(PLTR.US), AppLovin Corporation(APP.US), and Cloudflare(NET.US) saw their stock prices soar by approximately 36%, 24%, 24%, and 18%, respectively, on the first day after their earnings releases. These stocks have surged by around 44%, 57%, 58%, and 59% respectively.

Here is a detailed analysis of the US AI application software stocks with a market capitalization greater than $10 billion and a year-to-date increase ranking in the top 15. The data is as of the market close on February 14.

• One of the hottest AI tech stocks in the US market, mobile app advertising platform AppLovin Corporation(APP.US), reported explosive earnings. The company's AI tools have significantly boosted its ad monetization rates, making it one of the most sought-after stocks on Wall Street. The stock skyrocketed over 712% last year and has continued to rise nearly 58% this year.

On February 12, after the market closed, the company reported its Q4 earnings, with revenue and profit exceeding market expectations. Revenue reached $1.37 billion, up 44% year over year far exceeding analysts' expectations of $1.263 billion. Net income was $599.2 million, up 248% year over year, and adjusted EBITDA was $776.7 million, higher than the expected $764 million. Advertising revenue surged 73% to nearly $1 billion.

Applovin's Q1 earnings guidance also exceeded Wall Street expectations, The company projects revenue between $1.36 billion and $1.39 billion, with a midpoint of $1.37 billion, higher than analysts' expectations of $1.32 billion. The midpoint of EBITDA guidance is $870 million, surpassing analysts' expectations of $795.1 million.

• AI defense stock giant Palantir Technologies(PLTR.US) also delivered impressive results after its earnings release. The stock continuously hit new highs, soaring over 340% last year and rising approximately 58% this year.

The company reported its Q4 earnings on February 3 after the market closed. Revenue grew 36% year over year and 14% quarter over quarter to $828 million, beating analysts' expectations of $776 million. The company forecasts 2025 revenue between $3.74 billion and $3.76 billion, surpassing analysts' expectations of $3.54 billion. For Q1, it expects revenue between $858 million and $862 million, above analysts' expectations of $802.9 million.

• Digital platform for healthcare professionals Doximity, Inc.(DOCS.US) saw its stock skyrocket by 36% on the first day after its earnings release, the highest post-earnings gain among AI application software stocks so far.

The company reported its Q3 FY2025 earnings on February 6 after the market closed. Revenue and the full-year outlook both exceeded analysts' expectations. Quarterly revenue was $168.6 million, and non-GAAP diluted earnings per share were $0.45. The company expects Q4 revenue between $132.5 million and $133.5 million and full-year revenue between $564.6 million and $565.6 million.

• Internet services and infrastructure company Cloudflare(NET.US) has surged nearly 59% year-to-date, leading the pack among AI application software stocks that have released earnings.

The company reported its latest quarterly earnings on February 6 after the market closed, showing Q4 FY2024 revenue of $460 million, up 27% year-over-year, driven by strong corporate growth. The company expects Q1 FY2025 revenue between $468 million and $469 million, and full-year revenue between $2.09 billion and $2.094 billion.

Additionally, AI application software companies monday.com Ltd.(MNDY.US), Atlassian Corp. Plc Class A(TEAM.US), and Confluent, Inc.(CFLT.US) have all previously reported better-than-expected earnings, with strong post-earnings stock performance.

However, not all AI application software companies have seen stellar stock performance post-earnings. Communication platform as a service company Twilio, Inc. Class A(TWLO.US), which released its earnings, saw its stock drop over 15% last week. Q4 revenue was $1.195 billion, above the expected $1.18 billion, but non-GAAP earnings per share were $1.00, missing market expectations. Despite this, Twilio's stock has risen over 36% year-to-date as of yesterday's close.

Which AI Software Companies Are Set to Announce Their Earnings Reports

1. Tempus AI

AI healthcare stock Tempus AI(TEM.US), backed by notable investors like Cathie Wood and Nancy Pelosi, is set to release its earnings on February 24 after the market closes. The stock has surged 465% year-to-date, leading AI application software stocks.

Tempus AI is a US-based tech company focused on revolutionizing medical diagnostics and treatment through AI, particularly in the field of cancer. In January, Nancy Pelosi purchased 50 call options expiring in January 2026 with a strike price of $20. Earlier, in December, Cathie Wood accumulated over 600,000 shares this year, making it the 10th largest holding in the ARK Innovation ETF(ARKK.US), accounting for 3.2% of the fund's total assets.

Tempus AI previously announced preliminary Q4 and full-year financial results, showcasing strong growth in its core business areas. The report indicated full-year revenue of approximately $693 million, a 30% increase year-over-year, and Q4 revenue of around $200 million, up 35% year-over-year. Additionally, the company's adjusted EBITDA (a non-GAAP financial measure) showed continuous improvement for both the full year and Q4 of 2024.

Eric Lefkofsky, founder and CEO of Tempus, emphasized the strong growth in the company's core business, projecting a 30% increase in Q4 genomics revenue and a 45% increase in data and services revenue, bringing the company closer to achieving its full-year revenue and adjusted EBITDA guidance.

2. MongoDB

Developer data platform MONGODB(MDB.US) will release its earnings on March 5 after the market closes. The stock has risen nearly 25% year-to-date and was recently rated as Morgan Stanley's "top pick" for 2025 in the AI outlook.

MongoDB is known for its NoSQL database technology, allowing developers to build applications without dealing with the complexities of traditional relational databases like SQL.

Morgan Stanley has an "Overweight" rating on MongoDB with a price target of $350. The firm noted that MongoDB is set to benefit from the strong growth of AI-driven code development, accelerated new application growth, optimized cloud migration expectations, and consolidation opportunities as customers prefer to standardize with fewer vendors amid the current economic downturn.

In Q3, MongoDB reported revenue of $529 million, a 22.17% year-over-year increase, driven primarily by subscription-related revenue growth. Looking ahead, MongoDB expects Q4 2025 revenue to reach $517 million and earnings per share of $0.64. For the full year, the company forecasts revenue of $1.97 billion and earnings per share of $3.05.

3. Snowflake

Internet services and infrastructure company Snowflake(SNOW.US) will release its earnings on February 26 after the market closes. The stock has climbed nearly 22% year-to-date, hitting its highest price since March last year.

Snowflake has received positive ratings from several institutions recently. Mizuho Bank maintained a "Buy" rating and raised its price target from $195 to $205. Evercore ISI Group also maintained a "Buy" rating, adjusting its price target from $190.00 to $200.00. KeyBanc maintained its "Overweight" rating with a new price target of $210.

In Q3 FY2025, Snowflake reported revenue of $942 million, a 28.3% year-over-year increase, exceeding market expectations of $898 million. Non-GAAP earnings per share were $0.20, above the expected $0.15. Snowflake expects Q4 FY2025 product revenue to be between $906 million and $911 million, with a midpoint year-over-year growth of about 23%. For FY2025, the company projects product revenue to grow 29% year-over-year to $3.43 billion.

4. GitLab

Cloud-based software development tool provider GITLAB INC.(GTLB.US) has not yet announced the date for its Q4 FY2025 earnings report. The stock has risen nearly 21% year-to-date.

GitLab has been actively advancing its AI initiatives, launching several key projects in Q4 last year. These include the integration of GitLab Duo and Amazon Q with AWS, providing an AI-driven developer experience, and the introduction of Advanced SAST (Static Application Security Testing) features for Ultimate version customers.

In Q3, GitLab posted impressive results, with revenue reaching $196 million, surpassing market expectations of $188 million. Earnings per share were $0.23, significantly higher than the expected $0.16. Net income was $28.3 million, a strong recovery from a loss of $286 million in the same period last year.

GitLab also provided an optimistic Q4 outlook, projecting revenue between $205 million and $206 million and adjusted earnings per share between $0.22 and $0.23, compared to the expected $0.14.

In addition to these four stocks, other AI application software companies with strong year-to-date performance but pending earnings reports include Duolingo, Inc.(DUOL.US), Samsara, Inc.(IOT.US), and Rubrik Inc.(RBRK.US), with year-to-date gains of approximately 33%, 35%, and 19%, respectively.

What’s the Future Outlook for AI Software?

This year, DeepSeek has made a splash by significantly slashing AI model training costs. Experts say that DeepSeek's arrival has lowered the barriers for small and medium-sized businesses to develop AI applications, speeding up industry adoption. Enterprise software, like Agent AI, is poised to quickly roll out, boosting corporate efficiency and driving the software sector to outperform hardware.

Additionally, the big four U.S. tech giants— Amazon.com, Inc.(AMZN.US),  Meta Platforms(META.US), Google-A ( Alphabet Inc. Class A(GOOGL.US))/Google-C ( Alphabet Inc. Class C(GOOG.US) ), and Microsoft Corporation(MSFT.US) —are planning to ramp up their AI investments in 2025 to maintain their market leadership and technological edge. Many institutional investors believe that with this influx of capital, the U.S. software industry, already benefiting from AI, could become a leading sector in 2025.

Wedbush recently highlighted in a client report that the AI revolution is firmly taking root in the software sector, as seen in the recent performance and announcements from  Palantir Technologies(PLTR.US). Despite Palantir's significant valuation jump after its latest earnings and guidance, Wedbush analyst Dan Ives believes Wall Street is still underestimating AI's impact on software.

Dan Ives emphasized the broad application prospects in the software sector, predicting that 2025 will be a peak year for enterprise adoption. By then, large language models (LLMs) will be widely used, and the true adoption of generative AI will be a key driver for the software industry and its major players, allowing them to benefit from this once-in-a-lifetime fourth industrial revolution, which will significantly advance the tech sector.

Analyst Dan Ives also highlighted that Palantir Technologies(PLTR.US) and  Salesforce.com, inc.(CRM.US) will lead the 2025 AI revolution. He also pointed out other software companies that could benefit from the AI trend, including Oracle Corporation(ORCL.US),  International Business Machines Corporation(IBM.US),  Innodata Inc.(INOD.US),  Snowflake(SNOW.US),  MONGODB(MDB.US),  Elastic N.V.(ESTC.US), and Pegasystems Inc.(PEGA.US).