Mitchell Green: Strong SaaS results face an innovation test from AI and debt

Mitchell Green said public software-company earnings are a practical gauge of the global sector and described recent SaaS results as strong. He recalled that Workday had indicated roughly $400 million or $600 million in AI-related revenue, though the exact figure was not established.

Large enterprises often prefer existing vendors to develop AI solutions rather than replace them with new suppliers. Green nevertheless said AI, agents, robotics and humanoids could accelerate innovation and leave companies that do not invest behind.

He argued that the key risk is high leverage, not simply private-equity ownership. Using Stellantis and Ford as a comparison, he said a heavily indebted company may have less capacity to invest if robotics and AI transform manufacturing; highly leveraged businesses generally may find it harder to reinvent themselves while paying rising interest costs.