Despite a banner year for a wide range of semiconductor companies in the tech sector, most enterprise software stocks demonstrated more muted action throughout 2025.
The Philadelphia Semiconductor Index (SOX) increased 44% during 2025. In contrast, the iShares Expanded Tech-Software Sector ETF (IGV) only gained 6%.
Several of the major enterprise software stocks finished the year well behind where they started. For example, ServiceNow (NOW) declined by 27%, Salesforce (CRM) fell by 20% and Workday (WDAY) slipped 16%. The losses came despite these companies embracing artificial intelligence tools, such as Salesforce, which was expected to experience some momentum from its Agentforce offering.
However, Palantir (PLTR) bucked this trend, with its shares surging 138% in 2025 as it regularly racked up multi-year deals with government agencies and commercial enterprises. Its year-over-year revenue growth ranged from 40% to more than 60% for each reported quarter during 2025.
Several cybersecurity and identity security firms also outperformed the broader enterprise software sector. CrowdStrike (CRWD) shares gained 38% year to date, CyberArk (CYBR) increased by 35% and Zscaler (ZS) rose 25%. Rubrik (RBRK) shares increased by 18% during its first full year as a publicly traded company.
Enterprise software firms that also develop data centers and cloud networks performed better than average. Oracle (ORCL), which experienced a dramatic rise and fall in 2025, still managed to finish the year up 18%. Microsoft (MSFT) increased by 15% due in large part to its Azure segment. Google (GOOG)(GOOGL) demonstrated impressive momentum, with shares increasing 65% year to date.
However, on the final trading day of 2025, virtually all enterprise software stocks, along with the rest of the market, were down slightly. The benchmark S&P 500 (SP500), the Nasdaq Composite (COMP:IND), and the Dow (DJI) were all down about 0.2% by noon trading.