• AI-native SaaS companies are commanding a ~2x valuation premium over legacy SaaS providers, reflecting market preference toward defensible technology assets with strong AIupside.
  • AI-driven enterprise software spending is expected to surpass $450B in 2026, with AI software alone projected to grow ~60% YoY as enterprises seek to keep pace with rapidly modernizing workflows and operations.
  • Enterprise AI pioneers are increasingly capturing significant productivity gains at scale, with 20-30% improvements in software development efficiency and 25-40% reductions in time-toinsight across enterprise workflows.

S&S M&A Weather Report

SS MA Weather Report July 2026

Geopolitical conflict and an ever-dynamic rate environment have resulted in a volatile M&A market in 1H 2026. Should Middle East tensions cool, economic indicators stabilize, and current tech-IPO market momentum persist, the software market could be poised for a Q3 rebound.

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