August 17, 2026
RBC's checks with software resellers point to a strong quarter ahead for major software companies, moving roughly 218 billion dollars in market value.
What happened
RBC Capital Markets reported that feedback from software resellers is 'bullish', suggesting major software providers are poised to beat quarterly earnings estimates. The news moved roughly 218 billion dollars of market value across the software sector. This comes amid a calm market that is slipping today but still in a constructive upward trend.
Why it matters
Resellers sit between software makers and the businesses that buy their tools. When resellers report strong demand, it signals that companies are spending on software, upgrading systems, or expanding their digital operations. This activity feeds directly into the revenue of the large software providers, making reseller checks a leading indicator for earnings beats. The 218-billion-dollar move shows investors are betting this spending is durable.
The case against
Reseller checks capture a narrow slice of a vast market and can reflect one-off buying cycles rather than a lasting trend. The underlying evidence also flags a risk that global economic downturn could reduce demand, and that investors may be too optimistic about hyperscaler AI capex that is growing faster than revenue, implying negative returns on those massive investments.
Our read
The reseller report aligns with our view that investment in AI compute buildout will continue to drive growth, as companies spend to support AI infrastructure. It also fits our belief that advanced manufacturing and reshoring will boost smart factory tech. Both rest on the idea that corporate spending on specialized software is a multi-year story, not a one-time event.
What settles it
Confirming earnings reports from the major software providers tracked by the RBC survey, showing whether their revenue and guidance actually meet or exceed the resellers' bullish signal.