JPMorgan: IGV up 21% over two months, recommends Microsoft, ServiceNow, Snowflake

According to research, J.P. Morgan's report dated October 8, 2026 states that the Software Index ETF (IGV) has gained 21% since late June, infrastructure software is up 78% year-to-date, average revenue for infrastructure software beat estimates by 3.6% last quarter, and application software beat estimates by 1.4%. J.P. Morgan concludes that infrastructure software strength is driven by earnings upgrades, while application software strength comes from valuation re-rating. The bank recommends Microsoft, ServiceNow, Cloudflare, and Snowflake; expects Microsoft Copilot new seat additions to reach or exceed approximately 10 million, matching last quarter; notes ServiceNow's current remaining performance obligations exceeded expectations by roughly 200 basis points; downgrades HubSpot to Neutral with a lowered target price from $268 to $240; and raises Twilio's target price from $260 to $335.