Key Highlights

● OneSpan now expects 2026 Revenue of $254 million to $258 million.

● Shares soared in extended trading as software stocks sold off.

● ServiceNow had its worst day on record and Fortinet plunged.

● The first test is whether the gains hold when trading opens Friday, October 30.

OneSpan (NASDAQ:OSPN) lifted its full-year revenue outlook after Thursday's close, and the digital security company's shares soared in extended trading even as much of the software sector reeled.

A higher forecast, a sharp after-hours jump

OneSpan shares soared in after-hours trading on Thursday, October 29, after the digital identity and anti-fraud software company raised its revenue forecast for 2026. The stock was among the biggest gainers in the Russell 2000 in extended trading, according to market data.

OneSpan now expects 2026 revenue of $254 million to $258 million, according to market data. A raised forecast this late in the year carries extra weight, because it implies a stronger fourth quarter than management had previously planned for, with only a couple of months left in which to deliver.

As with any after-hours move, the price action came in thinner trading than the regular session, and moves in extended hours can shift before the next day's open.

Against a brutal software backdrop

The timing made OneSpan's jump all the more notable. Software was the market's sore spot on Thursday. The iShares Expanded Tech-Software ETF slid sharply on the day, according to market data, in a selloff led by ServiceNow (NYSE:NOW) and Fortinet (NASDAQ:FTNT).

ServiceNow had its worst day on record after reporting results that ended a six-quarter streak of Earnings beats, and Fortinet plunged after its service revenue guidance fell short. Fortinet's drop dragged other Cybersecurity names lower, and Zscaler (NASDAQ:ZS) fell early before recovering some ground.

Several smaller software firms also struggled, including Alkami Technology (NASDAQ:ALKT), which plunged in the Russell 2000 despite reporting revenue growth.

OneSpan's raised forecast offered a counterpoint: a security software company signalling that Demand is running ahead of plan.

What OneSpan does

OneSpan provides tools that help banks and other businesses verify customers' identities, secure transactions and electronic agreements, and fight fraud. Its customers are heavily concentrated in financial services, where spending on security tends to be steady because the cost of a breach or Fraud loss is so high.

The regular session in context

Before OneSpan's report, the broader market had a split session. The Russell 2000 climbed 28.71 points to 2,859.22 as small caps outperformed. The S&P 500 slipped 23.59 points to 7,720.39, and the Nasdaq Composite tumbled 365.13 points to 26,184.72, weighed down by Alphabet (NASDAQ:GOOGL)'s worst day since its 2004 IPO.

After the bell, the picture darkened for large-cap technology. Amazon (NASDAQ:AMZN) and Intel (NASDAQ:INTC) both fell sharply in after-hours trading following their results, and Nasdaq-100 futures dropped, according to market data. OneSpan's gain stood out against that late-day gloom.

The macro picture

Thursday's economic data pointed to a strong but inflationary economy. Third-quarter GDP growth accelerated and beat forecasts, and September PCE Inflation ran hot. The Federal Reserve held rates steady on Wednesday, but two officials dissented in favour of a hike, and markets have leaned toward an increase in December.

For software companies whose valuations depend on future earnings, higher rates can be a headwind. A rising revenue outlook helps offset that pressure.

What to watch

The first test is whether OneSpan's after-hours gains hold when regular trading opens on Friday, October 30. Investors will also look for more detail on what drove the raised forecast, including subscription growth, demand from banks, and margins.

Broader software sentiment remains fragile after ServiceNow and Fortinet. Friday's Employment Cost index and the Fed's December 8–9 meeting could influence whether investors return to Growth Stocks or continue to rotate toward defensive sectors.