We are reading through the Q2 2026 earnings calls every SaaS company we follow. The results so far are exceptional and The SaaSpocalypse narrative is falling apart in real time. Below are the key observations.
The numbers are extraordinary across the board. What is coming is a big ugly paragraph, but only because every SaaS company we’ve reviewed is financially dominating, with a combination of beating guidance, raising guidance, accelerating growth, and/or pushing profitability.
Palantir’s revenue grew 93% year-over-year and 19% sequentially to $1.935 billion. Zeta had its 20th consecutive beat-and-raise quarter. Freshworks beat the high end of guidance with 16% year-over-year growth. Klaviyo beat revenue expectations, raised guidance, and signed it’s largest deal ever. Atlassian’s adjusted EPS was $1.87 against a consensus of $1.50, a 24.67% beat, on revenue of $1.77 billion growing 28% year-over-year. Dynatrace exceeded the high end of every single guided metric simultaneously while delivering the fourth consecutive quarter of organic net new ARR acceleration. Datadog had its best growth quarter in four years; revenue was $1.12 billion, up 36% year-over-year. Cloudflare’s revenue was $696.1 million, up 36% year-over-year. Large customers reached 4,698, up 27% year-over-year, with 986 net additions, a record by a wide margin and the most ever added in any 12-month period. ServiceNow beat guidance on nearly every metric and raised full-year subscription revenue guidance raised to $15.755-$15.770 billion, implying 21% constant currency growth. Jfrog’s revenue was $163.8 million, up 29% year-over-year, beating the top end of guidance. When OpenAI had a sandbox breach, they contacted JFrog immediately. JFrog remediated fast, confirmed the fix, and maintained transparency throughout. Twilio set records in all metrics and raised guidance. Shopify had its fifth consecutive quarter of GMV growth above 30%. FIVN’s revenue beat the high end of guidance and their full-year AI growth outlook was raised from more than 40% to at least 60%. Procore revenue was $375 million, up 15.8% year-over-year, beating the high end of guidance by 2.5%, while achieving profitability and raising guidance. Paylocity’s revenue accelerated for the second consecutive quarter to ~12% while EBITDA margin expanded to 37%. Doximity’s revenue and EBITDA beat the high end of guidance. Salesforce’s Q2 was the most commercially spectacular in the company’s history. Crowdstrike’s call was also historic: every single guided metric set an all-time record simultaneously. SentinelOne’s revenue was $292 million, up 21% year-over-year, beating the high end of guidance. Adjusted EPS of $0.08 doubled year-over-year, beating estimates. Workday’s subscription revenue was $2.471 billion, up 14% — ahead of guidance. Non-GAAP operating margin was 31.1%, beating guidance. Okta had a record quarter and revenue of $805 million grew 11% year-over-year, beating the $793 million consensus. MongoDB recorded it’s highest revenue growth since 2024 (30% YOY) while operating margin hit 24%, up from 15% a year ago. C3’s revenue of $52.4 million beat guidance. Adjusted EPS loss of $0.20 beat the $0.25 estimate by 20%. Snowflake’s product revenue of $1.49 billion grew 37% year-over-year, the third consecutive quarter of acceleration, and EPS beat guidance. Full-year product revenue guidance was raised. Zscaler reported revenue of $898 million grew 25% year-over-year, beating the high end of guidance. At Asana, revenue of $216.4 million grew 10% year-over-year, the strongest pace in recent quarters, beating the high end of guidance. Docusign revenue grew 9% year-over-year, beating consensus by $8.5 million. Non-GAAP operating margin of 31.6% expanded 180 basis points. They also inked the largest US public sector deal in company history, and the largest LatAm deal in company history. UI Path’s revenue of $410.3 million grew 13% year-over-year, beating the $397.8 million consensus by $12.5 million. Cloud ARR of approximately $1.3 billion grew more than 19%. Dollar-based net retention improved to 109%, up 2 points year-to-date. $1 million-plus ARR customers grew 21% to 387. Rubrik’s revenue of $427.3 million grew 38% year-over-year, beating the $396.3 million consensus by $31 million, a 7.82% beat. Samsara’s revenue beat consensus, and they had quarterly records in both $100K+ and $1M+ customer additions.
In summary we’ve reviewed 34 earnings calls, and all 34 companies are posting a fantastic quarter.
Growth is accelerating, not decelerating. The narrative coming into Q2 was that SaaS growth was slowing. The data says the opposite. CrowdStrike accelerated for the fifth consecutive quarter on revenue and fourth on ARR. Snowflake’s acceleration is now three consecutive quarters. Atlassian cloud revenue accelerated to 31%. Twilio grew 22% with free cash flow up 81%. Rubrik grew 38% and beat by nearly $31 million. Samsara crossed $2.1 billion in ARR growing 30% with a record quarter for both $100K and $1M+ customer additions. The best SaaS companies are growing faster.
AI is adding revenue, not destroying it. This is the most important takeaway from the entire earnings cycle. Benioff said it best: “seats grew, attrition hit near-record lows, pricing power improved, and nine of the top 10 AI companies use Salesforce and Slack with spend up 435% year-over-year.” ServiceNow’s AI ACV surpassed $1 billion. Workday’s AI products drove over $100 million in new ACV in a single quarter. Datadog’s non-AI customer revenue accelerated to the high-20s. Atlassian’s Rovo is used by over 80% of the Fortune 500. The companies that were supposedly going to be disrupted by AI are instead the companies AI depends on and the ones putting out the most compelling AI products.
Profitability improved materially. Along with accelerating growth, margins expanded across the board. CrowdStrike’s non-GAAP operating margin was 25%, growing 46% year-over-year in absolute dollars. Snowflake expanded non-GAAP operating margin 400 basis points to 15%. Samsara hit 21% non-GAAP operating margin, up 6 points year-over-year. Freshworks posted its first-ever quarter of GAAP net income. Procore posted its first-ever quarter of GAAP operating profitability. Twilio hit a quarterly record on free cash flow.
The SaaSpocalypse was wrong. None other than Salesforce’s Marc Benioff dismantled six specific SaaSpocalypse predictions with six specific data points. “Skeptics said seats would decline; Agentforce sales, service, and Slack all grew year-over-year. Skeptics said customers would leave; attrition is near its lowest level ever. Skeptics said pricing power would erode; A1E and A4X bookings more than doubled quarter-over-quarter. Skeptics said contract length would shrink; terms improved across all segments. Skeptics said agents accessing our system would kill apps; usage surged sixfold. Skeptics said frontier models would eliminate the need for CRM; instead, they depend on it. Nine of the top 10 AI companies use Salesforce and Slack. Their spend is up 435% year-over-year.” Salesforce is far from alone. Atlassian’s mentioned that while intelligence can be hired by the token, 25 years of enterprise work data across 200 billion objects cannot. MongoDB made the same point about live operational data versus stale warehouse copies. Shopify’s Catalog converts at twice the rate of AI-scraped product data. Doximity’s clinical AI hit a 4.8% error rate versus 13.6% for the best frontier model in an independent head-to-head trial. The companies that have proprietary data, embedded workflows, and enterprise trust are not being disrupted. They are the ones building the best AI products.
What this means for private SaaS founders. The public comps matter for private valuations. When the median public SaaS multiple moves from 3.5x at the end of May to ~4.9x today a 39% improvement, that flows downstream into how investors price private deals and importantly what happens in M&A markets.
The SaaS model is stronger than ever.
Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Other resources we’ve built for founders include: SoftwareMultiples.com; softwareMRRcalculator.com; FounderInvited.com, and TwoFoundersTalk.com. Founders are always welcome to reach out to sammy@blossomstreetventures.com as well.