2026 SaaS Rebound
The +38% rebound has been the fastest in the last decade
In just 34 trading days, public software has staged one of the sharpest rebounds in a decade — and one of the narrowest. The market cap-weighted SaaS index is up +38% off its April 10, 2026, low, the fastest recovery so far of any cycle in the past 10 years, reversing a 40% drawdown from its November 3, 2025 peak — the deepest in a decade. But the move has been driven by remarkably few names: just 10 companies — largely the AI and security winners like CrowdStrike, Datadog*, Palantir, and Snowflake* — account for ~80% of the market cap regained, re-rating the top 10’s cap-weighted multiple from 9.9x to 14.8x NTM (next-twelve-months) revenue. The median software company, by contrast, still trades at just 3.3x NTM revenue — up only 19% off the lows. The full breakdown is in the deck below:
*Denotes a Meritech investment.