Will these stocks continue to perform in H2 2026?

Technical patterns suggest continued leadership, but the sector remains under pressure from macroeconomic factors.

How did the software sector index perform compared to these stocks?

The IGV ETF fell about 15% year-to-date, while JFrog held its gains and Qualys declined less.

JFrog and Qualys Defy Software Stock Rout

Q: Why did JFrog and Qualys outperform?

Due to bullish technical patterns and strong fundamentals including accelerating revenue growth and expanding customer base.

While software stocks have been crushed, JFrog and Qualys have outperformed thanks to bullish technical patterns that suggest continued leadership into the second half of 2026.

June 30, 2026

2 min read

Source: Barrons.com

Amid a severe selloff in software stocks, JFrog (FROG) and Qualys (QLYS) have managed to outperform their peers, according to a report from Barron's. Bullish technical patterns indicate both stocks could continue leading into the second half of 2026.

Bullish Technical Patterns

Analysts note that both stocks are displaying positive chart formations, such as double bottoms and breakouts above key moving averages, reinforcing confidence in the upward trend.

Outperformance

While the iShares Expanded Tech-Software Sector ETF (IGV) has fallen about 15% year-to-date, JFrog has held onto its annual gains, while Qualys declined less than the sector average.

Fundamental Support

The resilience is backed by strong fundamentals, including accelerating revenue growth and an expanding customer base, particularly in software security and application lifecycle management.

What It Means for Investors

Despite the technical optimism, analysts caution that the sector remains under pressure from rising interest rates and reduced enterprise spending. Investors should watch upcoming earnings reports to confirm sustained momentum.

Frequently Asked Questions

JFrog (FROG) and Qualys (QLYS) have outperformed the software sector during the recent selloff.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.