What 82 SaaS earnings calls say about sales cycles and the economy

We read through the earnings calls of 82 publicly traded SaaS companies we follow, and pulled all the quotes regarding the state of the economy. Then like a college kid we dumped all that data into ChatGPT and asked for a synopsis. Below are the key themes:

Uncertainty is still causing friction in the sales cycle. Executives are describing a macro environment defined not by crisis, but by persistent, grinding uncertainty. Most companies aren’t calling out dramatic deterioration rather, they’re seeing the same slow-moving headwinds quarter after quarter: elongated sales cycles, more deal scrutiny, budget caution, and unpredictable timing on large commitments. Whether it’s cybersecurity platforms like SentinelOne, operations tools like PagerDuty, or enterprise data players like Couchbase and Sprinklr, the message is consistent: customers aren’t cutting spending outright, but they are being more careful, taking longer, and demanding higher certainty of ROI before signing. This uncertainty, rather than any single economic shock, has become the “steady state” that companies now plan for.

But customers still need important software. At the same time, many sectors are proving remarkably resilient to traditional macro swings. Cybersecurity vendors point out that “cyber doesn’t care about market cycles,” while field-service platforms like ServiceTitan and vertical systems like Samsara note that operational jobs, safety, and infrastructure workflows remain stable even through slowdowns. Companies such as DocuSign acknowledge that a severe global downturn would affect them, but ordinary regional or sector-specific softness now has limited impact. In industries like life sciences (Veeva), digital operations (Zoom), or digital commerce (Shopify), demand remains fundamentally healthy, with companies leaning on mission-critical positioning to buffer macro noise.

AI is helping offset economic concerns. A third theme is the rise of AI as a counter-cyclical force, offsetting macro hesitation with a wave of strategic investment. Companies from Similarweb to Datadog to Five9 report accelerating interest in AI-driven capabilities, with customers willing to spend when value is clear. Even firms facing top-of-funnel pressure, like Asana and Semrush, describe AI both as a catalyst for product reinvention and as a necessary response to structural search-platform changes. Others, like UiPath and GitLab, emphasize prudence in forecasting but highlight growing early traction in agentic automation, government demand, and deeper modernization initiatives. Across categories, AI is acting as a tailwind within a headwind, unlocking budget even in cautious conditions.

SMB and government sales are hurting. Budget conservatism remains real in SMB and government segments. Companies like PagerDuty, GitLab, MeridianLink, and Certera describe customers “rightsizing,” delaying renewals, or pushing deals into 2026. Federal spending has introduced a unique set of delays due to shutdown concerns, procurement slowdowns, and shifting agency priorities. Meanwhile, industries tied to advertising, retail, or consumer discretionary trends like DoubleVerify, PubMatic, The Trade Desk highlight soft pockets influenced by tariffs, policy changes, and shifting consumer sentiment. Even when demand is structurally strong, planning assumptions remain conservative.

Some see acceleration. Monday.com sees faster growth across all high-value customer segments; Sprout Social logged its strongest large-deal quarter outside Q4; Q2 Holdings reports steady demand tied to financial-services transformation; and construction-focused platforms like Procore and DigitalOcean frame the current cycle as a temporary downturn poised to flip into a tailwind. Even industries experiencing pressure like HVAC, biosciences, or community banking are signaling mid-term optimism as conditions normalize or rates decline. Companies see fundamental drivers intact.

Taken together, we’re in a macro environment defined less by contraction and more by elevated friction. Sales cycles are slower, not smaller. Budgets are scrutinized, not frozen. Customers want provable efficiency, automation, and value which is why AI, process modernization, and mission-critical workflows continue to attract investment even when discretionary spend tightens. The SaaS ecosystem is navigating uncertainty with more discipline, higher ROI hurdles, and stronger emphasis on durable operational value. The market may be cautious, but it’s not retreating and many companies believe the eventual macro turn will unlock a significant release of deferred demand.

Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Email the author at sammy@blossomstreetventures.com.