Artificial intelligence is reshaping investor sentiment across the software industry, sending valuations sharply lower even as many leading software-as-a-service (SaaS) companies continue to report double-digit revenue growth. The growing concern—dubbed the "SaaSpocalypse" by market watchers—is based on the belief that generative AI and autonomous agents could disrupt traditional enterprise software platforms. The selloff has been particularly severe for established software leaders: Intuit shares fell 58% this year and declined more than 60% over the past 12 months, Adobe is down 42% this year, Zscaler dropped 43%, and Workday dropped 39%. Despite those concerns, operating performance remains strong: Adobe reported quarterly revenue of $6.62 billion, up 13% year over year; Intuit posted 10% revenue growth to $8.6 billion; and Zscaler delivered revenue increasing 25% to $850 million. Many incumbents are embedding AI into their products, including Intuit across QuickBooks, Adobe expanding generative AI features, and Salesforce betting on Agentforce. The disconnect has led to a sharp valuation reset: Adobe trades at a forward price-to-earnings multiple of around 8, significantly below its five-year average of 25, while Intuit's forward multiple has fallen to about 12 from a historical average of 34.