Markets
Janus Henderson: SaaS Isn't Dead But AI Is Forcing a Hard Reset — Software Trades at 20x 2027 Earnings, Below Historical Average
Janus Henderson published a contrarian investment thesis arguing application software stocks at 20x 2027 earnings (well below historical average) represent potential opportunity, not just disruption risk. Software has fallen roughly 18% YTD vs the NASDAQ which is only modestly negative. The firm views 2026 as a 'sorting mechanism' revealing which SaaS vendors evolve vs become structurally impaired. For builders: the beaten-down companies that demonstrate credible AI roadmaps will attract capital; the window to acquire cheap SaaS infrastructure is now.
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