Macquarie Equity Research has outlined its favored names in the AI software landscape, identifying three companies it sees as well placed to benefit from rising demand for AI-enabled security tools and continued software consumption. The research note emphasizes that recent developments, such as Anthropic’s Project Glasswing announcement and Frontier Red Team’s April 7 blog, reinforce a trend toward using AI to combat AI within cybersecurity. Macquarie argues that the increased speed and scale of AI-driven attacks will push the industry to advance red teaming, exposure management, and vulnerability management technologies.
The firm also observed that overall software demand remains intact. Hyperscaler revenue, a bellwether for enterprise cloud consumption, accelerated by 5 percentage points sequentially to 35% year-over-year. At the same time, Macquarie highlighted a noteworthy weakening in hiring signals: job postings across its 40-company software index declined meaningfully in February and March, suggesting some cooling beneath the surface of otherwise steady top-line indicators.
1. Autodesk Inc. (ADSK)
Macquarie retains an Outperform rating on Autodesk with a $310 price target. The research note points to several catalysts that support the recommendation: expanding penetration into greenfield construction markets, distinctive AI-driven product advances, improved internal efficiencies, and cross-selling potential tied to a recent transaction model. Autodesk reported a strong fourth-quarter result that exceeded expectations and provided guidance for fiscal 2027 that sits above consensus, though the company cautioned that revenue tailwinds from the new transaction model are expected to taper.
Autodesk is scheduled to report first-quarter results in late May. Macquarie remains constructive on the company’s efforts to create a marketplace ecosystem, develop next-generation design tools, and apply AI to better align design and manufacturing workflows. The note also summarizes recent analyst activity: Wolfe Research and Stifel reiterated positive views given Autodesk’s AI strategy, while BMO Capital and DA Davidson reduced their price targets, with BMO specifically noting the need to monitor some fine-tuning within the sales organization.
2. Datadog Inc. (DDOG)
Macquarie highlights Datadog’s favorable market dynamics, potential for share gains, resilient revenue model, core AI positioning, multi-product uptake, and strong free cash flow generation. Datadog posted a sizable top-line beat in the fourth quarter, with revenue growth accelerating versus prior periods. Company metrics and management commentary pointed to broad strength across customer segments and product areas, and management guided well ahead of prior first-quarter consensus revenue estimates.
Datadog is expected to report first-quarter earnings in early May and has new product introductions planned at its DASH user conference scheduled for June 9-10. Recent market activity included an upgrade by Guggenheim from Neutral to Buy, citing Datadog as a beneficiary of AI-driven growth. The company also announced general availability of its MCP Server, a feature that gives developers access to live observability data for AI agents.
3. Zscaler Inc. (ZS)
Macquarie favors Zscaler for its product differentiation, competitive positioning, and execution within a robust cybersecurity market. The research note argues that major cybersecurity platform vendors such as Zscaler are among the best situated to acquire or internally develop defenses required to counter AI-driven threats.
Zscaler delivered a strong second-quarter revenue result, outperforming the high end of guidance by $17 million. That performance was driven by large deals and broad-based volume strength, particularly in the Americas. The company subsequently raised fiscal 2026 revenue guidance by an incremental $4 million at the high end. Zscaler is expected to report third-quarter results in late May and plans new product launches at its Zenith Live user conference scheduled for June 8-10.
Market reactions to Zscaler include a downgrade from Buy to Neutral by BTIG, which cited a shift in competitive dynamics following recent field checks. Separately, Zscaler announced an expansion of its data sovereignty capabilities, including a planned deployment in Canada.
Summary and context
Macquarie’s selections underscore two concurrent dynamics in enterprise software: accelerating hyperscaler revenues that point to ongoing cloud consumption, and the specific urgency around AI-focused cybersecurity capabilities as adversaries adopt AI at scale. At the same time, weaker hiring signals in a curated software index introduce an element of caution about the broader labor and demand backdrop.
Key upcoming company events
- Autodesk: first-quarter earnings in late May.
- Datadog: first-quarter earnings expected in early May; DASH user conference June 9-10 for product launches.
- Zscaler: third-quarter earnings in late May; Zenith Live user conference June 8-10 for product announcements.