We read through the Q3 earnings call transcripts of 65 publicly traded SaaS companies we follow. We pulled all the quotes and comments regarding tariffs and the economy, and then like a college kid we dumped that data into ChatGPT and asked for a synopsis. Below are the key themes:
Customers are cautious, but buying. The software sector is navigating a cautiously resilient economy. Demand for digital transformation, security, and AI-driven solutions remains robust, but customers are slower to sign contracts, more careful with budgets, and particularly sensitive in certain segments.
Some companies are reporting resilience. Many leaders report healthy growth, especially in areas tied to cloud migration, automation, AI, and cybersecurity. Companies like Adobe, DataDog, and SentinelOne emphasize that enterprise buyers continue to invest in platforms that reduce costs or enable new capabilities. As one CEO put it, “Overall, I don’t think we’re seeing any significant evidence of macro weakness in our numbers.”
Sales cycles are longer and scrutiny is up. The most consistent theme is not a collapse in demand but rather friction in closing deals. Multiple executives noted that after being selected, contracts now linger in legal or procurement. Budget owners want to prove ROI, compliance teams are more involved, and CFOs are taking a closer look at invoices. In practice, this means pipelines are healthy, but revenue recognition may slide from one quarter to the next.
SMB is showing strain. While large enterprises are spending, small and mid-sized businesses are showing strain. Several companies flagged incremental weakness in SMB bookings and heightened price sensitivity. Some customers are trimming headcount or delaying purchases, making this segment the softest pocket of the market.
Tariffs of course. Tariffs, foreign exchange swings, and geopolitical uncertainty continue to surface on calls, but most executives describe these as timing and operational issues rather than existential threats. Companies are hedging and adjusting pricing, but few report direct hits to demand so far.
AI and security are standouts. Perhaps the most encouraging signal is how consistently companies mention AI and security as active spending priorities. Buyers are “wide open” to AI innovation, in the words of one executive, and cybersecurity remains a top-three line item regardless of sector. These categories are acting as accelerants, pulling budgets forward even as other areas face scrutiny.
Taken together, these calls tell a story of an economy that is stable but cautious. Enterprises continue to fund transformative projects, while SMBs tighten belts. Deals are still happening, just slower, with more signatures required. Emphasize ROI, reduce friction in procurement, and lean into the categories where wallets are open like AI, automation, and security.
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Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Email the author at sammy@blossomstreetventures.com.