72 public cloud companies analyzed for early signs of AI cost-revenue imbalance

The AI Cost-Revenue Divergence (ACRD) detection framework compares revenue growth, cost-of-revenue growth, and gross-margin change to identify early signs of AI workload margin pressure.

9 public cloud companies where AI costs are outpacing revenue and compressing margins
25 public cloud companies where AI costs are beginning to outpace revenue growth
72 public cloud companies analyzed for early signs of AI cost-revenue imbalance

Edge, CDN and observability	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Akamai	5.0%	5.1%	+10 bps	−4 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth and revenue growth were effectively in line within the ±300 bps band, and gross margin was essentially flat year over year, indicating no visible divergence. ACRD current Signal from most recent earnings call: Neutral Management described AI Inference Cloud as an accelerating growth driver within CIS, but current quarter margins reflect normal cost structure dynamics rather than AI-driven cost imbalance. The Bottom Line: No financial divergence is visible in the most recent quarter, with revenue and cost growth moving in tandem and gross margin effectively stable. AI-related investments are expanding CIS growth but are not yet creating margin compression; classification: AI-Exposed
Cloudflare	30.7%	52.5%	+2,179 bps	-372 bps	Active
ACRD trailing signal from past 10-Q: Active Cost growth materially exceeded revenue growth by more than 500 basis points and gross margin declined year over year, confirming financial divergence. ACRD current Signal from most recent earnings call: Active Management highlighted accelerating AI-driven traffic, increased network cost allocations, and higher CapEx intensity tied to AI and pool-of-funds variability, reinforcing visible cost-revenue slope imbalance. The Bottom Line: Confirmed financial divergence in the most recent quarter, with cost growth significantly outpacing revenue growth and clear gross margin compression. AI agent-driven workload expansion is increasing network cost intensity; classification: AI-Linked
Datadog	29.2%	29.6%	+40 bps	0 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth was essentially in line with revenue growth, and gross margin remained stable, indicating no visible financial divergence. ACRD current Signal from most recent earnings call: Neutral Management highlighted AI-related product launches and enterprise expansion but did not disclose cost pressure tied to AI workload intensity or infrastructure strain. The Bottom Line: Financial divergence is not present. Cost growth is tracking revenue growth and gross margins remain stable. Management did not attribute any cost pressure to AI workloads. Attribution classification: AI-Exposed
Digital Ocean	15.7%	13.2%	−253 bps	+90 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Revenue growth modestly outpaced cost growth within the ±300 bps band and gross margin expanded year over year, indicating no visible divergence. ACRD current Signal from most recent earnings call: Neutral Management disclosed near-term margin pressure from new data center capacity ramp and higher component costs, but Q4 showed margin stability and no AI-driven cost imbalance. The Bottom Line: No financial divergence is visible in the most recent quarter, with revenue growth exceeding cost growth and slight margin expansion. While AI capacity investments may pressure margins near term, current results show no cost-revenue imbalance; classification: AI-Exposed (Indirect).
Dynatrace	18.1%	15.4%	−270 bps	+150 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth within the ±300 bps band and gross margin expanded meaningfully year over year, indicating improving operating leverage and no financial divergence. ACRD current Signal from most recent earnings call: Positive Management emphasized 16% ARR growth stabilization, 20%+ platform consumption growth, log management growth above 100% year over year, and continued 30% non-GAAP operating margins, with no indication of AI-driven cost pressure. The Bottom Line: Financial performance reflects healthy top-line growth with cost discipline and expanding gross margins. AI and log consumption are driving incremental usage without compressing margins; classification: Not AI-Linked
Elastic	15.9%	9.5%	−640 bps	+139 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth materially exceeded cost-of-revenue growth (spread −640 bps) and gross margin expanded by +139 bps. ACRD current Signal from most recent earnings call: Positive Management described efficiency gains and platform adoption without indicating rising AI workload cost pressure. The Bottom Line: Revenue is scaling faster than cost to serve, producing gross-margin expansion rather than divergence. Management did not attribute cost structure changes to AI workload intensity; classification: Not AI-Linked
Fastly	7.8%	14.6%	+680 bps	−220 bps	Active
ACRD trailing signal from past 10-Q: Active Cost-to-serve is growing materially faster than revenue, and gross margin declined year over year. ACRD current Signal from most recent earnings call: Active Quarterly results show continued cost growth outpacing revenue growth, with margin compression visible; management disclosures reference ongoing platform investment and infrastructure intensity without unit cost reconciliation. The Bottom Line: Financial divergence is present, with cost growth outpacing revenue growth and margin compression visible. Management has not explicitly attributed this to AI workloads; however, as an edge compute provider, Fastly is structurally exposed to rising compute intensity. AI-exposed
GitLab	24.6%	45.6%	+2,099 bps	−190 bps	Active
ACRD trailing signal from past 10-Q: Active Cost growth materially exceeded revenue growth by more than 500 basis points and gross margin declined year over year, confirming financial divergence. ACRD current Signal from most recent earnings call: Active Management emphasized increased investment in AI capabilities and platform expansion, while margins reflected elevated cost structure relative to revenue growth, reinforcing visible slope imbalance. The Bottom Line: Confirmed financial divergence in the most recent quarter, with cost growth significantly outpacing revenue growth and clear gross margin compression. AI initiatives are strategically central but not yet demonstrating operating leverage; Classification: AI-Exposed
JFrog	25.5%	13.2%	−1230 bps	+760 bps	Emerging
ACRD trailing signal from past 10-Q: Positive Revenue growth materially outpaced cost-of-revenue growth (−1230 bps spread), producing a substantial gross margin expansion of +760 bps. ACRD current Signal from most recent earnings call: Emerging Management referenced growth tied to AI software supply chain tooling and AI model delivery infrastructure, suggesting increasing AI-related workloads associated with platform expansion. The Bottom Line: Cost efficiency improved significantly in the quarter as revenue growth outpaced cost-of-revenue growth by 1,230 bps and gross margin expanded to 77.4%. Management linked product expansion and platform demand to AI-related software supply chain use cases; Classification: AI-Linked.
NetScout	0.0%	-0.3%	−30 bps	+0 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Revenue and cost-of-revenue growth were effectively flat year over year, leaving gross margin essentially unchanged. ACRD current Signal from most recent earnings call: Neutral Management attributed quarterly performance primarily to timing shifts in customer orders and service renewals rather than changes in compute intensity or infrastructure cost drivers. The Bottom Line: No cost-revenue divergence is present in the quarter; revenue is flat and gross margin remains stable at roughly 82.8%. Management cited order-timing dynamics rather than structural workload drivers; classification: Not AI-Linked.
PagerDuty	4.7%	-9.4%	−1,414 bps	+230 bps	Positive
ACRD trailing signal from past 10-Q: Positive Cost of revenue declined year over year while revenue grew modestly, producing strong negative spread and material gross margin expansion. ACRD current Signal from most recent earnings call: Positive Management commentary did not indicate AI-linked compute pressure or structural cost acceleration. The Bottom Line: No cost-revenue divergence is present. Revenue growth modestly exceeded cost trends, with material margin expansion driven by declining cost of revenue. Classification: Not AI-Linked
Data infrastructure and data platforms	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Confluent	19.0%	8.3%	−1,070 bps	+180 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth materially exceeded cost growth by more than 300 basis points and subscription gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Positive Management emphasized accelerating cloud consumption, 70%+ sequential Flink ARR growth, 43% RPO growth, and expanding operating margin, with no indication of AI-driven cost pressure in cost of revenue. The Bottom Line: Strong subscription growth driven by cloud and DSP adoption with expanding gross margins and improving operating leverage. AI-related streaming and context workloads are increasing platform relevance without compressing margins; classification: AI-Exposed
Couchbase	10.0%	15.2%	+520 bps	−120 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost-of-revenue growth exceeded revenue growth by approximately 520 bps, producing a modest gross margin decline of −120 bps. ACRD current Signal from most recent earnings call: Emerging Management described expanding AI-driven application workloads and platform enhancements including vector database capabilities and AI-agent infrastructure, indicating increasing compute-intensive usage patterns. The Bottom Line: Cost growth modestly exceeded revenue growth in the quarter, producing a +520 bps spread and a −120 bps gross margin change. Management highlighted growing AI-driven application development and vector database usage on the platform; Classification: AI-Linked
MongoDB	18.7%	32.4%	+1,371 bps	−295 bps	Active
ACRD trailing signal from past 10-Q: Active Cost growth exceeded revenue growth by more than 500 basis points and gross margin declined year over year, confirming financial divergence. ACRD current Signal from most recent earnings call: Active Management explicitly cited Atlas mix shift as the driver of gross margin compression, with Atlas now 74% of revenue and growing faster than non-Atlas, reinforcing ongoing cost-revenue imbalance. The Bottom Line: Confirmed financial divergence in the most recent quarter, with cost growth materially outpacing revenue growth and visible gross margin compression. Management attributes the pressure to Atlas mix shift rather than AI workload intensity; Classification: Not AI-Linked.
Snowflake	30.1%	33.2%	+310 bps	−100 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost growth outpaced revenue growth by more than 300 basis points and gross margin declined year over year, indicating early slope imbalance. ACRD current Signal from most recent earnings call: Emerging Management referenced accelerating AI workload contribution and expanding product investment, with new AI products carrying lower margin profiles than the core business, but did not provide unit cost reconciliation. The Bottom Line: Financial divergence is beginning to emerge, with cost growth modestly outpacing revenue growth and slight margin compression visible. Management has not explicitly attributed margin pressure to AI workloads; however, as a consumption-based data and AI platform, Snowflake is structurally AI-Exposed
Teradata	3.0%	-1.8%	−480 bps	+90 bps	Neutral
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by more than 300 basis points and gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Neutral Management highlighted modest ARR growth, hybrid deployment demand, and significant AI product innovation, but guided to flat-to-slight revenue growth and acknowledged recurring revenue headwinds from upfront license dynamics, with no indication of AI-driven cost pressure. The Bottom Line: Operating leverage improved in Q4 with modest revenue growth and declining cost of revenue, supporting margin expansion. AI initiatives are foundational but not yet materially accelerating financial growth; classification: AI-Exposed
Storage, data protection and data management	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Commvault	21.0%	18.7%	−230 bps	+60 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth by approximately 230 bps, producing a modest gross margin expansion of +60 bps. ACRD current Signal from most recent earnings call: Positive Management emphasized platform efficiency gains and strong software subscription growth, with no indication that AI workloads were increasing compute intensity or cost structure. The Bottom Line: Revenue growth materially exceeded cost growth in the quarter, producing a −230 bps spread and a small improvement in gross margin. Management attributed performance primarily to subscription growth and platform efficiency rather than AI workload intensity; Classification: Not AI-Linked
NetApp	4.2%	3.2%	−100 bps	+70 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth slightly exceeded cost-of-revenue growth (spread −100 bps), producing modest gross-margin expansion (+70 bps). ACRD current Signal from most recent earnings call: Positive Management highlighted strong demand for AI storage infrastructure and all-flash arrays but did not describe AI workloads as creating incremental cost-of-revenue pressure. The Bottom Line: Cost of revenue is growing slightly slower than revenue and gross margin expanded modestly in the quarter. AI demand is discussed primarily as a revenue driver rather than a cost driver; classification: AI-Exposed
Pure Storage	16.0%	19.3%	+330 bps	−140 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost-of-revenue growth exceeded revenue growth by approximately 330 bps, producing a modest gross margin decline of −140 bps. ACRD current Signal from most recent earnings call: Emerging Management discussed increasing hyperscaler shipments and infrastructure demand, which implies higher storage infrastructure workloads associated with AI-scale environments. The Bottom Line: Cost growth modestly exceeded revenue growth in the quarter, producing a +330 bps spread and a −140 bps gross margin change. Management attributed strong demand partly to hyperscaler infrastructure deployments associated with AI environments; classification: AI-Exposed (Indirect).
Rubrik	48.0%	31.5%	−1650 bps	+400 bps	Emerging
ACRD trailing signal from past 10-Q: Positive Revenue growth materially exceeded cost-of-revenue growth (−1650 bps spread), producing significant gross margin expansion of approximately +400 bps. ACRD current Signal from most recent earnings call: Emerging Management discussed enterprise demand tied to cyber resilience and infrastructure modernization ahead of AI transformation, including new AI-agent governance products such as Rubrik Agent Cloud. The Bottom Line: Revenue growth substantially exceeded cost growth in the quarter, producing a −1650 bps spread and a +400 bps improvement in gross margin. Management linked rising enterprise demand partly to infrastructure modernization for AI and new AI-agent governance capabilities; classification: AI-Exposed (Indirect).
Cybersecurity and digital trust	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
BlackBerry	10.0%	6.3%	−370 bps	+60 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth by approximately 370 bps, producing modest gross margin expansion of +60 bps. ACRD current Signal from most recent earnings call: Positive Management emphasized disciplined cost management and favorable revenue mix as drivers of improved profitability rather than compute-intensive AI workloads. The Bottom Line: Revenue growth exceeded cost growth in the quarter, producing a −370 bps spread and a +60 bps improvement in gross margin. Management attributed margin improvement to cost optimization and revenue mix rather than AI-driven workload intensity; classification: Not AI-Linked.
Check Point	6.4%	15.2%	+880 bps	−80 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost of revenue grew materially faster than revenue (spread +880 bps), producing a modest −80 bps decline in gross margin. ACRD current Signal from most recent earnings call: Emerging Management described margin pressure primarily in the context of product mix and subscription growth rather than explicit AI workload expansion. The Bottom Line: Cost of revenue growth outpaced revenue growth by 880 bps, producing modest gross margin compression of −80 bps in the reporting period. The divergence appears related to subscription mix and infrastructure costs rather than explicit AI workloads; classification: Not AI-Linked.
CrowdStrike	23.0%	21.6%	−140 bps	+30 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth by approximately 140 bps, producing modest gross margin expansion of +30 bps. ACRD current Signal from most recent earnings call: Positive Management repeatedly attributed demand acceleration to AI proliferation, including increased security demand for AI applications, AI agents, and AI attack surfaces. The Bottom Line: Revenue growth exceeded cost growth in the quarter, producing a −140 bps spread and modest gross margin expansion of +30 bps. Management explicitly linked demand acceleration to enterprise AI adoption and AI security workloads; classification: AI-Linked.
Fortinet	15.0%	9.4%	−560 bps	+90 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by more than 300 basis points and gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Positive Management highlighted 18% billings growth, 40% Unified SASE billings growth, strong large enterprise deal expansion, and continued gross margin discipline, with no indication of AI-driven cost pressure. The Bottom Line: Strong platform-led revenue growth with expanding margins and disciplined cost structure. AI, Unified SASE, and OT security are accelerating demand without compressing gross margins; classification: AI-Linked (growth driver, not cost pressure).
Gen Digital	25.8%	38.9%	+1,310 bps	−204 bps	Active
ACRD trailing signal from past 10-Q: Active Cost growth substantially exceeded revenue growth (+1,310 bps spread), and gross margin declined materially (−204 bps). ACRD current Signal from most recent earnings call: Active Management discussed expanding AI-driven security platforms and agent-protection products but did not indicate cost relief that would offset the margin compression. The Bottom Line: Cost-of-revenue growth outpaced revenue growth by a wide margin, producing a meaningful gross-margin decline in the quarter. Management highlighted new AI-related security initiatives and products but did not attribute the increase in cost of revenue to AI workloads or AI-related infrastructure costs; classification: Not AI-Linked.
Palo Alto Networks	16.0%	12.8%	−320 bps	+60 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by more than 300 basis points and gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Positive Management highlighted 29% NGS ARR growth, 24% RPO growth, 30% operating margin, and continued free cash flow expansion, with no evidence of AI-driven cost pressure despite heavy AI and observability investment. The Bottom Line: Strong platform-driven revenue growth with expanding margins and operating leverage. AI security, quantum initiatives, and observability expansion are contributing to growth without compressing gross margins; classification: AI-Linked (growth driver, not cost pressure).
Qualys	9.9%	10.5%	+60 bps	−4 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth was essentially in line with revenue growth (spread +60 bps) and gross margin remained effectively flat (−4 bps). ACRD current Signal from most recent earnings call: Neutral Management emphasized platform expansion, channel growth, and new AI-driven risk-management capabilities but did not indicate any cost pressure from AI workloads. The Bottom Line: No cost-revenue divergence is present in the quarter; cost growth and revenue growth remain closely aligned and gross margin is effectively unchanged. Management’s AI discussion focuses on product capabilities rather than infrastructure cost drivers; classification: Not AI-Linked.
Rapid7	5.9%	6.8%	+90 bps	−6 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth was broadly aligned with revenue growth (spread +90 bps) and gross margin was effectively unchanged (−6 bps). ACRD current Signal from most recent earnings call: Neutral Management discussed platform innovation and AI-assisted security capabilities but did not indicate any AI-driven increase in cost of revenue. The Bottom Line: No cost-revenue divergence is present in the quarter; revenue and cost growth remain closely aligned and gross margin is essentially flat. Management references AI primarily as a product capability rather than a driver of infrastructure cost; classification: Not AI-Linked.
SailPoint	20.0%	16.0%	−400 bps	+80 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, resulting in stable-to-expanding gross margins and continued operating leverage. ACRD current Signal from most recent earnings call: Positive Management emphasized operating margin expansion and disciplined expense management while positioning AI primarily as a feature embedded in identity security workflows and agent identity governance rather than as a cost driver. The Bottom Line: Revenue growth materially exceeded cost growth, producing margin expansion and improved operating leverage. While management referenced AI frequently in the context of agent identity security and automation, these capabilities are positioned as product functionality rather than drivers of infrastructure cost; classification: Not AI-Linked
SentinelOne	23.0%	18.0%	−500 bps	+100 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, producing improved gross margin and indicating no evidence of cost pressure. ACRD current Signal from most recent earnings call: Positive Management highlighted continued operating leverage and margin expansion while discussing AI primarily as a product capability embedded in the Singularity security platform, not as a cost driver. The Bottom Line: Revenue growth significantly exceeded cost growth, producing expanding gross margins and improving operating leverage. Management repeatedly referenced AI capabilities (Purple AI, AI-native SIEM, AI security) but framed them as platform features driving demand rather than infrastructure costs; classification: Not AI-Linked.
Tenable	10.5%	7.0%	−350 bps	+100 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, resulting in expanding gross margin and indicating no evidence of cost pressure. ACRD current Signal from most recent earnings call: Positive Management repeatedly referenced AI in the context of exposure management and platform capabilities (Tenable One, AI exposure visibility, AI remediation), but positioned AI primarily as a product capability and demand driver, not as a contributor to infrastructure or cost-of-revenue pressure. The Bottom Line: Revenue growth exceeded cost growth, producing continued gross-margin expansion and improving operating leverage. Management highlighted strong customer demand tied to AI exposure management and platform adoption, but did not attribute any cost-of-revenue increases to AI infrastructure or AI workloads; classification: Not AI-Linked.
Varonis	9.1%	46.4%	+3,730 bps	-560 bps	Active
ACRD trailing signal from past 10-Q: Active Cost of revenue grew dramatically faster than revenue (46% vs 9%), producing a 3.7-point decline in gross margin, indicating clear margin pressure in the quarter. ACRD current Signal from most recent earnings call: Active Management emphasized continued transition toward SaaS delivery of the Varonis Data Security Platform and increased cloud-hosted infrastructure supporting the SaaS model, implying structurally higher service delivery costs relative to the historical on-premise model. The Bottom Line: Cost-of-revenue growth far outpaced revenue growth, producing a meaningful gross-margin decline in the quarter as the company continues migrating customers to its SaaS platform. The cost structure reflects the economics of delivering hosted security analytics and monitoring infrastructure rather than traditional license software; classification: AI-Linked.
Zscaler	25.5%	30.6%	+510 bps	−92 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost growth modestly exceeded revenue growth by just over 500 basis points, while gross margin declined less than 100 basis points, indicating early slope imbalance but not confirmed structural divergence. ACRD current Signal from most recent earnings call: Emerging Management emphasized rapid AI transaction growth, metered usage expansion, and increased infrastructure and capacity investments, with gross margin remaining broadly stable near 80%, suggesting early cost-revenue pressure but no acute margin deterioration. The Bottom Line: Financial slope imbalance is beginning to appear, with cost growth outpacing revenue growth and slight gross margin compression. AI-driven traffic expansion and metered usage growth are increasing infrastructure intensity; classification: AI-Exposed (Indirect
Communications, CX and engagement platforms	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Braze	25.5%	36.4%	+1,090 bps	-262 bps	Active
ACRD trailing signal from past 10-Q: Active Cost of revenue growth exceeded revenue growth by a wide margin (+1,090 bps spread), producing a meaningful gross-margin decline (−262 bps). ACRD current Signal from most recent earnings call: Active Management stated that gross margin pressure was driven primarily by higher premium messaging volume and hosting costs associated with expanded AI-driven customer engagement workloads. The Bottom Line: Cost-of-revenue growth substantially exceeded revenue growth, compressing gross margin by 262 bps in the quarter. Management explicitly ties higher infrastructure and messaging costs to increased usage of AI-driven engagement capabilities; classification: AI-Linked.
Five9	8.0%	-0.8%	−880 bps	+101 bps	Positive
ACRD trailing signal from past 10-Q: Positive Cost of revenue declined while revenue increased, producing a negative spread (−880 bps) and gross margin expansion (+101 bps). ACRD current Signal from most recent earnings call: Positive Management highlighted that subscription growth and AI-driven enterprise revenue expansion improved the revenue mix and drove margin improvement. The Bottom Line: Revenue grew modestly while cost of revenue declined, expanding gross margin by roughly 100 bps. Management attributes the improvement primarily to higher-margin subscription revenue and AI-driven enterprise offerings; classification: AI-Linked.
Klaviyo	34.6%	32.1%	−250 bps	+54 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by roughly 250 bps, producing modest gross-margin expansion (+54 bps). ACRD current Signal from most recent earnings call: Positive Management described continued leverage from its data platform and AI-driven marketing automation capabilities, which supported scale without proportional infrastructure cost increases. The Bottom Line: Revenue growth outpaced cost-of-revenue growth, producing modest gross-margin expansion in the quarter. Management positions product capability around AI-driven marketing automation and predictive customer engagement; classification: AI-Linked.
LivePerson	-18.4%	-24.6%	−620 bps	+290 bps	Neutral
ACRD trailing signal from past 10-Q: Positive Cost of revenue declined significantly faster than revenue, producing meaningful gross-margin expansion despite the overall revenue contraction. ACRD current Signal from most recent earnings call: Neutral Management attributed the margin improvement primarily to cost restructuring and operational efficiency measures, rather than AI workload dynamics. The Bottom Line: Gross margin expanded materially because cost reductions outpaced declining revenue. Management attributes the improvement primarily to restructuring and cost discipline rather than AI workload economics; classification: Not AI-Linked.
RingCentral	4.8%	2.9%	−190 bps	+70 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by roughly 190 bps, producing incremental gross-margin expansion in the quarter. ACRD current Signal from most recent earnings call: Positive Management repeatedly emphasized that AI products (AIR, AVA, ACE) are increasing ARPU, retention, and wallet share, while internal use of AI is improving operating efficiency. The Bottom Line: Revenue is growing faster than cost of revenue, producing gradual margin expansion. Management explicitly describes AI products increasing ARPU and retention while internal AI usage reduces operating costs; classification: AI-Linked.
Sprinklr	9.2%	27.2%	+1,800 bps	−490 bps	Active
ACRD trailing signal from past 10-Q: Active Revenue growth of roughly 9% was substantially outpaced by 27% growth in cost of revenue, producing a spread of about +1,800 bps and a material gross-margin decline in the quarter. The divergence indicates meaningful pressure at the unit-economics level. ACRD current Signal from most recent earnings call: Active Management continues to position the platform as AI-native unified customer experience management, emphasizing AI-driven automation across marketing, service, and contact center workflows. However, there was no explicit reconciliation of AI-related workload costs versus revenue contribution, leaving the cost-intensity implied but not quantified. The Bottom Line: Costs are rising materially faster than revenue, producing clear gross-margin compression in the quarter. While the company emphasizes an AI-native CXM platform and AI-driven automation, management does not reconcile AI workload intensity with revenue gains; classification: AI-Linked with active cost pressure.
Zscaler	25.5%	30.6%	+510 bps	−92 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost growth modestly exceeded revenue growth by just over 500 basis points, while gross margin declined less than 100 basis points, indicating early slope imbalance but not confirmed structural divergence. ACRD current Signal from most recent earnings call: Emerging Management emphasized rapid AI transaction growth, metered usage expansion, and increased infrastructure and capacity investments, with gross margin remaining broadly stable near 80%, suggesting early cost-revenue pressure but no acute margin deterioration. The Bottom Line: Financial slope imbalance is beginning to appear, with cost growth outpacing revenue growth and slight gross margin compression. AI-driven traffic expansion and metered usage growth are increasing infrastructure intensity; classification: AI-Exposed (Indirect
Yext	-1.7%	11.3%	+1,300 bps	−270 bps	Neutral
ACRD trailing signal from past 10-Q: Active Cost of revenue increased while revenue declined, creating a large positive spread and clear gross-margin compression. ACRD current Signal from most recent earnings call: Neutral Management discussed retention improvements and product launches including Scout and the Hearsay integration, but did not explicitly link margin dynamics to AI workload intensity. The Bottom Line: Revenue declined modestly while cost of revenue increased, producing measurable gross-margin compression in the quarter. Management highlights new AI-oriented product capabilities but does not explicitly attribute the margin pressure to AI workloads; classification: AI-Exposed (Indirect).
Zoom	3.2%	0.8%	-240 bps	+120 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth modestly exceeded cost-of-revenue growth, producing incremental gross-margin expansion in the quarter. ACRD current Signal from most recent earnings call: Positive Management repeatedly emphasized AI monetization through AI Companion, Contact Center AI, and Zoom Virtual Agent, highlighting paid AI attachment across major deals and expanding enterprise adoption. The Bottom Line: Revenue is growing slightly faster than cost of revenue, producing gradual gross-margin expansion. Management explicitly positions AI Companion, Zoom Virtual Agent, and CX automation as new monetization drivers; classification: AI-Linked.
Collaboration and productivity SaaS	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Atlassian	23.3%	6.5%	−1,678 bps	+236 bps	Positive
ACRD trailing signal from past 10-Q: Positive Cost growth materially trailed revenue growth by more than 300 basis points and gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Positive Management emphasized accelerating AI adoption, strong seat expansion, and continued gross margin improvement while explicitly stating AI costs are being managed inside the model, with no margin pressure disclosed. The Bottom Line: Financial leverage is improving, with revenue growth materially outpacing cost growth and significant margin expansion visible. AI is contributing to usage expansion and monetization, but no cost pressure is evident; classification: Not AI-Linked.
Box	9.1%	10.8%	+170 bps	−31 bps	Neutral
ACRD trailing signal from past 10-Q: Emerging Cost of revenue grew faster than revenue (+170 bps spread) and gross margin declined modestly (−31 bps). ACRD current Signal from most recent earnings call: Neutral Management reported strong results and highlighted margin discipline and AI-driven efficiencies rather than rising infrastructure cost pressure. The Bottom Line: Revenue continues to grow near double digits, but cost of revenue grew slightly faster, producing modest margin compression in the quarter. Management commentary emphasizes operational efficiency and AI-enabled automation. Subsequent to the period, the company announced a major workforce reduction of more than 4,000 employees — nearly half of its workforce — as part of a shift toward operating with smaller teams supported by AI automation.; classification: AI-Exposed (Indirect).
DocuSign	8.4%	8.9%	+53 bps	−10 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth was essentially in-line with revenue growth (spread +53 bps) and gross margin was effectively flat (−10 bps). ACRD current Signal from most recent earnings call: Neutral Management attributed the modest gross margin decline primarily to cloud migration transition costs (not AI workload intensity). The Bottom Line: No cost-revenue divergence is present in the quarter; the spread is de minimis and gross margin is flat. Management attributes gross margin pressure to cloud migration transition costs rather than AI workloads; classification: Not AI-Linked.
Dropbox	-1.1%	10.6%	+1,170 bps	−230 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Revenue was essentially flat while cost of revenue increased meaningfully (+10.6%), producing a positive spread (+1,170 bps) and moderate gross-margin compression (−230 bps). ACRD current Signal from most recent earnings call: Emerging Management attributed margin pressure primarily to infrastructure expansion and data-center investment related to scaling Dash AI trials, which increased depreciation and infrastructure costs. The Bottom Line: Dropbox shows early cost-revenue divergence: revenue is flat while infrastructure costs rise as the company scales AI features (Dash) and refreshes data-center hardware. Management explicitly links margin pressure to AI infrastructure expansion; classification: AI-Linked.
monday .com	24.7%	29.8%	+510 bps	−80 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Revenue grew strongly (+24.7%), but cost of revenue grew faster (+29.8%), producing a positive spread (+510 bps) and modest gross-margin compression (−80 bps). ACRD current Signal from most recent earnings call: Emerging Management emphasized significant investment in AI agents, AI workflows, and AI Sidekick, and indicated that expanding AI capabilities and infrastructure could place pressure on gross margins, which are expected to move from ~90% historically to the mid- to high-80% range as AI workloads scale. The Bottom Line: monday.com remains a high-growth SaaS platform, but early AI expansion is introducing incremental cost pressure. Management explicitly indicated that investments in AI capabilities and infrastructure will slightly reduce gross margins while AI adoption scales; classification: AI-Linked.
Horizontal enterprise SaaS	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Adobe	10.7%	15.9%	+520 bps	−100 bps	Positive
ACRD trailing signal from past 10-Q: Emerging Revenue grew strongly, but cost of revenue grew faster, producing a positive spread (~520 bps) and a small gross-margin decline. This indicates early-stage divergence, but not yet material margin compression. ACRD current Signal from most recent earnings call: Positive Management repeatedly emphasized AI-driven monetization, including: • Firefly generative models • generative credit consumption • AI-driven Creative Cloud upgrades • AI-powered Acrobat and Express tools Generative credit consumption increased 3× quarter-over-quarter, indicating strong usage monetization. The Bottom Line: Costs are increasing somewhat faster than revenue in the current quarter, producing a small amount of margin pressure. However, management explicitly describes strong monetization from AI products such as Firefly and generative credit consumption, which suggests AI is functioning primarily as a revenue accelerator rather than a structural cost burden; classification: AI-Linked with emerging divergence.
Intuit	17.8%	9.4%	−840 bps	+170 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth materially exceeded cost-of-revenue growth (spread −840 bps), producing meaningful gross-margin expansion. ACRD current Signal from most recent earnings call: Positive Management attributed strong growth and margin expansion to AI-driven platform capabilities, including AI agents, automation, and domain-specific financial intelligence embedded in QuickBooks, TurboTax, and Credit Karma workflows. The Bottom Line: Revenue is growing significantly faster than cost of revenue and margins expanded in the quarter. Management directly attributes platform momentum to AI-driven capabilities across its financial intelligence platform; classification: AI-Linked.
Salesforce	10.9%	11.8%	+90 bps	−30 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Cost growth was slightly higher than revenue growth (spread +90 bps) and gross margin declined modestly (−30 bps), indicating essentially stable cost structure. ACRD current Signal from most recent earnings call: Neutral Management emphasized AI platform expansion (Einstein Copilot, Data Cloud, and Agentforce) but did not attribute margin dynamics or cost-of-revenue pressure directly to AI workloads. The Bottom Line: Cost and revenue growth remain closely aligned and gross margin is effectively stable. AI initiatives are positioned as product expansion rather than drivers of infrastructure cost pressure; classification: AI-Exposed (Indirect).
SAP	11.0%	9.0%	−200 bps	+120 bps	Positive
ACRD trailing signal from past financial report: Positive Revenue growth exceeded cost growth and operating profit expanded significantly, indicating improving margin structure rather than cost-pressure divergence. ACRD current Signal from most recent earnings call: Positive Management repeatedly emphasized that AI adoption and the Business Data Cloud platform are driving customer demand and efficiency gains across SAP’s operations. The Bottom Line: SAP’s financial structure shows expanding profitability with revenue growing faster than costs. Management positions Business AI and SAP Business Data Cloud as growth drivers rather than sources of cost pressure; classification: AI-Linked.
ServiceNow	22.5%	20.4%	−210 bps	+40 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, resulting in modest margin expansion and indicating no cost-pressure divergence. ACRD current Signal from most recent earnings call: Positive Management highlighted strong demand for Now Assist and generative AI capabilities embedded across the platform, emphasizing productivity gains and enterprise adoption rather than rising infrastructure costs. The Bottom Line: Revenue growth continues to exceed cost growth and margins expanded slightly in the quarter. Management positions generative AI capabilities such as Now Assist as revenue-enhancing features rather than drivers of cost pressure; classification: AI-Linked.
Workday	16.4%	15.1%	−130 bps	+30 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, resulting in modest margin expansion and indicating no cost-pressure divergence. ACRD current Signal from most recent earnings call: Positive Management highlighted strong adoption of Workday AI, generative AI agents, and AI-powered finance and HR automation, emphasizing productivity gains and platform value rather than increased infrastructure cost pressure. The Bottom Line: Revenue continues to grow faster than cost of revenue, producing incremental margin expansion. Management positions AI capabilities as workflow automation and enterprise productivity tools rather than drivers of infrastructure cost pressure; classification: AI-Linked.
Industry and vertical SaaS	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Autodesk	19.2%	8.6%	−1,060 bps	+170 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth (+19.2%) materially exceeded cost-of-revenue growth (+8.6%), producing a negative spread (−1,060 bps) and a moderate gross-margin expansion (+170 bps). ACRD current Signal from most recent earnings call: Positive Management emphasized that AI capabilities are being layered into existing cloud and platform workflows while maintaining operating leverage. The company highlighted that AI automation, industry data advantages, and platform integration are expected to increase software value while maintaining strong margins. The Bottom Line: Autodesk demonstrates strong AI-leveraged economics, with revenue expanding significantly faster than the cost to deliver its cloud and AI-enabled software. Management attributes this to its platform architecture, proprietary design and engineering datasets, and long-standing investment in AI capabilities; classification: AI-Leveraged.
Bentley Systems	12.0%	6.3%	−570 bps	+80 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth (+12.0%) outpaced cost-of-revenue growth (+6.3%), producing a negative spread (−570 bps) and a modest improvement in gross margin (+80 bps). ACRD current Signal from most recent earnings call: Positive Management emphasized that AI initiatives — particularly asset analytics, digital twins, and API consumption of engineering simulation software — are expected to increase platform usage while maintaining strong margins and generating incremental consumption revenue streams. The Bottom Line: Bentley’s infrastructure engineering platform continues to demonstrate stable AI-leveraged economics, with revenue scaling faster than delivery costs while new AI-driven use cases such as asset analytics and simulation API consumption expand monetization opportunities; classification: AI-Leveraged.
Bill Holdings	17.0%	13.2%	−380 bps	+160 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth materially exceeded cost-of-revenue growth, producing a negative spread and supporting expansion in profitability metrics, indicating that the platform is scaling with improving unit economics. ACRD current Signal from most recent earnings call: Positive Management emphasized that AI-driven automation, agentic workflows, and payment network scale are improving operating efficiency while increasing transaction volumes across the platform. AI agents now automate financial workflows such as vendor management, invoice coding, and transaction reconciliation, reducing manual work and lowering operational costs. The Bottom Line: BILL demonstrates platform leverage rather than AI cost pressure, with revenue scaling faster than delivery costs while agentic automation improves operational efficiency across the financial operations platform; classification: AI-Leveraged.
Paycom	9.2%	-3.4%	−1,255 bps	225 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth materially outpaced cost growth by more than 300 basis points and gross margin expanded year over year, indicating improving operating leverage. ACRD current Signal from most recent earnings call: Positive Management emphasized margin expansion driven by automation and AI productivity gains, with no indication of infrastructure-driven cost pressure. The Bottom Line: Operating leverage is improving, with revenue growth outpacing declining cost growth and clear margin expansion. AI initiatives appear to enhance efficiency rather than increase compute burden; classification: Not AI-Linked.
Paylocity	12.5%	11.7%	−78 bps	+22 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Revenue and cost growth moved broadly in tandem within the ±300 bps band, with modest gross margin expansion, indicating no visible divergence. ACRD current Signal from most recent earnings call: Neutral Management highlighted AI assistant usage growth and operational efficiency gains, with continued margin expansion and raised EBITDA guidance, and no disclosure of AI-driven cost pressure. The Bottom Line: Financial performance reflects stable cost-revenue alignment with modest operating leverage. AI initiatives are positioned as productivity enhancements rather than compute-intensive cost drivers; classification: Not AI-Linked.
Veeva	16.0%	14.5%	−148 bps	+29 bps	Neutral
ACRD trailing signal from past 10-Q: Neutral Revenue growth modestly exceeded cost growth within the ±300 bps band and gross margin expanded slightly year over year, indicating no visible divergence. ACRD current Signal from most recent earnings call: Neutral Management emphasized diversified growth across Vault CRM, Crossix, Clinical, and Safety, with stable subscription gross margins and no indication of AI-related infrastructure cost pressure. The Bottom Line: No financial divergence is visible in the most recent quarter, with revenue growth outpacing cost growth and gross margin stable to slightly improving. AI initiatives appear product-led rather than compute-intensive; classification: Not AI-Linked.
AI platforms, automation and decision systems	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
BigBear.ai	-20.1%	-16.4%	+370 bps	−370 bps	Emerging
ACRD trailing signal from past 10-Q: Active Revenue declined materially while cost of revenue declined less rapidly, producing a positive spread (+370 bps) and a clear gross-margin contraction (−370 bps). ACRD current Signal from most recent earnings call: Emerging Management discussed rapid advances in frontier AI capabilities and emphasized agentic AI deployment and AI-driven mission systems as a central growth driver, indicating rising AI workload intensity in the operating model. The Bottom Line: BigBear.ai shows clear cost-revenue divergence: revenue fell faster than cost of revenue, compressing gross margin by 370 bps in the quarter. Management’s emphasis on expanding agentic AI deployments suggests increasing compute- and AI-driven workload intensity; classification: AI-Linked.
C3.ai	-29.1%	18.4%	+4,750 bps	−2,710 bps	Active
ACRD trailing signal from past 10-Q: Active Cost-to-serve increased while revenue declined, and gross margin compressed materially year over year. ACRD current Signal from most recent earnings call: Active Quarterly results show further revenue contraction and gross margin collapse, with cost growth outpacing revenue decline; management commentary centers on restructuring and cost reduction to stabilize operations. The Bottom Line: Financial divergence is present and accelerating; however, management disclosures indicate restructuring and revenue contraction as primary drivers rather than rising AI inference costs.
Palantir	69.6%	32.3%	−3,730 bps	1,480 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth (+69.6%) dramatically exceeded cost-of-revenue growth (+32.3%), producing a strong negative spread (−3,730 bps) and meaningful gross-margin expansion (+1,480 bps). ACRD current Signal from most recent earnings call: Positive Management emphasized accelerating enterprise adoption of AIP and ontology-driven AI deployments, with customers expanding use cases and scaling production workloads across both commercial and government segments. The company reported 70% YoY revenue growth and highlighted rapid expansion of U.S. commercial adoption of AI platforms. The Bottom Line: Palantir demonstrates clear positive AI economics: revenue is growing substantially faster than the cost to deliver AI-powered software, producing expanding margins even as AI adoption accelerates. Management attributes the performance to large-scale production deployments of AIP and ontology-driven AI platforms across enterprise and government customers; classification: AI-Leveraged.
SoundHound AI	67.6%	87.0%	+1,946 bps	−597 bps	Emerging
ACRD trailing signal from past 10-Q: Active Cost of revenue grew significantly faster than revenue (+1,946 bps spread), resulting in a material gross-margin contraction (−597 bps). ACRD current Signal from most recent earnings call: Emerging Management highlighted accelerating AI workload intensity, including billions of monthly queries, cloud-based audio queries up ~75% YoY, and increasing enterprise automation deployments using agentic AI systems. The Bottom Line: SoundHound is experiencing rapid AI-driven demand growth, but the quarter shows clear cost-revenue divergence, with infrastructure and delivery costs rising faster than revenue as AI workloads scale. Management attributes growth to expanding conversational and agentic AI deployments across enterprise, automotive, and restaurant automation workloads; classification: AI-Linked.
UiPath	15.9%	7.9%	−800 bps	+122 bps	Emerging
ACRD trailing signal from past 10-Q: Positive Cost of revenue growth materially lagged revenue growth (−800 bps spread) and gross margin expanded meaningfully year over year. ACRD current Signal from most recent earnings call: Emerging Management repeatedly attributed customer adoption and workflow expansion to agentic automation and AI-driven automation capabilities, including integrations with OpenAI, Microsoft, NVIDIA, and Google. The Bottom Line: Revenue growth significantly outpaced cost growth, producing material gross-margin expansion in the quarter. Management explicitly links customer expansion to agentic automation and AI capabilities, indicating early AI-driven demand expansion; classification: AI-Linked.
Web and creator platforms	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Freshworks	14.0%	7.8%	−620 bps	+200 bps	Positive
ACRD trailing signal from past 10-Q: Positive Cost of revenue increased materially slower than revenue, producing a negative spread (−620 bps) and modest gross-margin expansion (+200 bps). ACRD current Signal from most recent earnings call: Positive Management described stable gross margins (~86–87%) with operational efficiency improvements and no indication of rising AI workload costs impacting cost of service. The Bottom Line: Cost-of-revenue growth lagged revenue growth by a wide margin, producing modest gross-margin expansion in the quarter. Management commentary attributes performance primarily to operational efficiency and AI monetization rather than workload cost pressure; classification: Positive.
HubSpot	20.0%	17.3%	−270 bps	+120 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost-of-revenue growth, producing a negative spread and modest margin expansion, indicating that HubSpot’s platform continues to scale with improving efficiency. ACRD current Signal from most recent earnings call: Positive Management emphasized AI-driven growth levers, including agent-based workflows, AI credit consumption, and expanded “core seat” adoption across the platform. AI agents such as Customer Agent, Prospecting Agent, and Data Agent are increasingly automating marketing and sales workflows while creating new monetization through usage-based credits. The Bottom Line: HubSpot demonstrates platform leverage from AI rather than cost pressure, with revenue growth outpacing delivery costs while AI agents and usage-based credits introduce new monetization channels; classification: AI-Leveraged.
Wix	14.0%	15.7%	+170 bps	−100 bps	Active
ACRD trailing signal from past 10-Q: Emerging Cost of revenue increased modestly faster than revenue (+170 bps spread), producing a measurable but not severe gross-margin compression (−100 bps). ACRD current Signal from most recent earnings call: Active Management explicitly attributed the margin decline to AI compute and inference costs associated with Base44 growth and AI product scaling, indicating elevated workload intensity. The Bottom Line: Cost-of-revenue growth outpaced revenue growth and produced measurable gross-margin compression in the quarter. Management directly attributes margin pressure to AI inference and compute investment supporting Base44 growth; classification: AI-Linked.
Hyperscale cloud platforms	Revenue Growth	Cost of Revenue Growth	Cost − Rev Spread	Gross Margin Δ	ACRD Signal
Alphabet	15.9%	13.4%	−250 bps	+90 bps	Positive
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by roughly 250 bps, producing a gross-margin expansion of about 90 bps in the quarter. ACRD current Signal from most recent earnings call: Positive Management reported accelerating AI adoption across Gemini, Cloud, and enterprise workloads while also stating that Gemini serving unit costs declined 78% through optimization and utilization improvements. The Bottom Line: Revenue is growing materially faster than cost of revenue, producing clear gross-margin expansion. Management explicitly describes AI infrastructure and model optimization driving efficiency gains and higher product adoption; classification: AI-Linked.
Amazon	12.0%	13.8%	+180 bps	−60 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost growth exceeded revenue growth by roughly 180 bps, producing a modest gross-margin compression of about 60 bps in the quarter. ACRD current Signal from most recent earnings call: Emerging Management repeatedly tied rising infrastructure investment and capacity expansion to AI workloads, custom silicon, and Bedrock platform growth. The Bottom Line: Cost of revenue is rising faster than revenue, producing measurable gross-margin compression. Management explicitly attributes the investment cycle to AI infrastructure expansion and AI service demand, including Bedrock and custom AI chips; classification: AI-Linked.
IBM	4.3%	3.0%	−130 bps	+36 bps	Emerging
ACRD trailing signal from past 10-Q: Positive Revenue growth exceeded cost growth by roughly 130 bps, producing modest gross-margin expansion (+36 bps). ACRD current Signal from most recent earnings call: Emerging Management repeatedly highlighted accelerating demand for generative-AI consulting, watsonx deployments, and AI infrastructure tied to enterprise workloads. The Bottom Line: Revenue growth modestly exceeded cost-of-revenue growth, producing slight gross-margin expansion in the quarter. Management attributes growth in part to enterprise AI deployments across watsonx and consulting engagements; classification: AI-Linked.
Microsoft	17.0%	19.0%	+200 bps	−100 bps	Emerging
ACRD trailing signal from past 10-Q: Emerging Cost growth exceeded revenue growth by roughly 200 bps, producing a modest gross-margin decline of about 100 bps. ACRD current Signal from most recent earnings call: Emerging Management explicitly stated that gross margin declined due to continued investments in AI infrastructure and higher AI product usage. The Bottom Line: Cost of revenue is rising faster than revenue, producing a measurable gross-margin decline in the quarter. Management explicitly attributes the pressure to AI infrastructure investment and AI product usage growth; classification: AI-Linked.
Oracle	9.0%	14.2%	+520 bps	−240 bps	Active
ACRD trailing signal from past 10-Q: Active Cost of revenue growth exceeded revenue growth by roughly 520 bps, producing a meaningful gross-margin decline (−240 bps). ACRD current Signal from most recent earnings call: Active Management repeatedly attributed accelerating infrastructure demand to AI workloads, including AI infrastructure revenue growing 243% year over year and multicloud database revenue expanding 531%. The Bottom Line: Cost-of-revenue growth substantially exceeded revenue growth, compressing gross margin by roughly 240 bps in the quarter. Management directly attributes surging infrastructure demand to AI infrastructure and multicloud database workloads; classification: AI-Linked.

ACRD shows costs rising faster than revenue. Who wins AI? The first to cut its cost

Source: RevenueModel.ai

Signals are classified by cost-revenue divergence measured in basis points:

Positive — revenue growth exceeds cost growth
Neutral — within ±300 bps
Emerging — 300–500 bps divergence with margin compression
Active — >500 bps divergence with visible gross-margin pressure

Financial data derived from the most recent company 10-Q filings and corresponding earnings-call transcripts. The dataset is continuously updated as new filings appear.