Research · refreshed nightly · August 17, 2026
Software Beating the Rule of 40 (October 2026)
Software passing the growth + margin bar.
The Rule of 40 is software's fitness test, and only 12 software names in our coverage currently beat it. CrowdStrike leads with an MGI of 70 on 32% revenue growth, followed by dLocal at 68, growing 38% a year with per-share growth faster still at 39%.
Passing the same bar does not make the members alike. Palantir at a $351B cap and Karooooo at roughly $1.5B sit in the same dozen, and mature engines like Intuit and Adobe qualify on discipline rather than speed. A median MGI of 60.5 reflects how selective this group is. Click any name for the full citation-backed analysis.
31companies qualify
64median MGI
4joined this week
The ranking
Sorted by MGI
1
Zscaler, Inc.ZS🇺🇸
Revenue +33%/yr · +29%/yr per share · asset light
G 71V 56O 73Cap $29.7B
MGI
71
MVI
56
MTI
46
MOI
73
Cap
$29.7B
Growth
+25%2
JFrog Ltd.FROG🇺🇸
Revenue +24%/yr · +18%/yr per share · asset light
G 69V 53O 70Cap $11.4B
MGI
69
MVI
53
MTI
38
MOI
70
Cap
$11.4B
Growth
+29%3
Datadog, Inc.DDOG🇺🇸
Revenue +31%/yr · +27%/yr per share · asset light
G 68V 49O 67Cap $92.6B
MGI
68
MVI
49
MTI
40
MOI
67
Cap
$92.6B
Growth
+31%4
Duolingo, Inc.DUOL🇺🇸
Revenue +35%/yr · +17%/yr per share · asset light
G 68V 63O 73Cap $5.8B
MGI
68
MVI
63
MTI
45
MOI
73
Cap
$5.8B
Growth
+18%5
Red Violet, Inc.RDVT🇺🇸
Revenue +18%/yr · +16%/yr per share · asset light
G 68V 54O 69Cap $1.0B
MGI
68
MVI
54
MTI
43
MOI
69
Cap
$1.0B
Growth
+17%6
dLocalDLO🇺🇾
Revenue +41%/yr · +42%/yr per share · scale economics
G 68V 77O 79Cap $4.0B
MGI
68
MVI
77
MTI
48
MOI
79
Cap
$4.0B
Growth
+55%7
The Descartes Systems Group Inc.DSG.CA🇨🇦
Revenue +13%/yr · +13%/yr per share · asset light
G 67V 56O 70Cap $7.5B
MGI
67
MVI
56
MTI
37
MOI
70
Cap
$7.5B
Growth
+16%8
Clear Secure, Inc.YOU🇺🇸
Revenue +32%/yr · +24%/yr per share · asset light
G 66V 67O 73Cap $5.9B
MGI
66
MVI
67
MTI
52
MOI
73
Cap
$5.9B
Growth
+27%9
innoscripta SE1INN.DE🇩🇪
Revenue +43%/yr · +13%/yr per share · asset light
G 66V 70O 73Cap $867.5M
MGI
66
MVI
70
MTI
53
MOI
73
Cap
$867.5M
Growth
+58%10
Planisware SAPLNW.FR🇫🇷
Revenue +14%/yr · +14%/yr per share · asset light
G 66V 55O 68Cap $2.1B
MGI
66
MVI
55
MTI
42
MOI
68
Cap
$2.1B
Growth
+8%11
CrowdStrike Holdings, Inc.CRWD🇺🇸
Revenue +32%/yr · +29%/yr per share · asset light
G 65V 39O 58Cap $220.9B
MGI
65
MVI
39
MTI
44
MOI
58
Cap
$220.9B
Growth
+26%12
Paysign, Inc.PAYS🇺🇸
Revenue +28%/yr · +23%/yr per share · asset light
G 65V 54O 66Cap $743.6M
MGI
65
MVI
54
MTI
52
MOI
66
Cap
$743.6M
Growth
+48%13
ATOSS Software SEAOF.DE🇩🇪
Revenue +16%/yr · +16%/yr per share · asset light
G 65V 61O 69Cap $1.5B
MGI
65
MVI
61
MTI
32
MOI
69
Cap
$1.5B
Growth
+11%14
Adobe Inc.ADBE🇺🇸
Revenue +10%/yr · +13%/yr per share · asset light
G 64V 70O 76Cap $104.2B
MGI
64
MVI
70
MTI
51
MOI
76
Cap
$104.2B
Growth
+13%15
Autodesk, Inc.ADSK🇺🇸
Revenue +12%/yr · +13%/yr per share · asset light
G 64V 59O 69Cap $51.6B
MGI
64
MVI
59
MTI
35
MOI
69
Cap
$51.6B
Growth
+18%16
ActiveOps PLCAOM.GB🇬🇧
Revenue +13%/yr · -46%/yr per share · asset light
G 64V 65O 68Cap $186.4M
MGI
64
MVI
65
MTI
42
MOI
68
Cap
$186.4M
Growth
+14%17
Fortinet, Inc.FTNT🇺🇸
Revenue +18%/yr · +20%/yr per share · asset light
G 63V 53O 65Cap $115.0B
MGI
63
MVI
53
MTI
42
MOI
65
Cap
$115.0B
Growth
+18%18
Palantir Technologies Inc.PLTR🇺🇸
Revenue +32%/yr · +24%/yr per share · asset light
G 61V 40O 56Cap $418.2B
MGI
61
MVI
40
MTI
42
MOI
56
Cap
$418.2B
Growth
+85%19
Intuit Inc.INTU🇺🇸
Revenue +15%/yr · +15%/yr per share · asset light
G 61V 65O 68Cap $101.0B
MGI
61
MVI
65
MTI
40
MOI
68
Cap
$101.0B
Growth
+10%20
Dave Inc.DAVE🇺🇸
Revenue +33%/yr · +5%/yr per share · asset light
G 61V 66O 66Cap $4.5B
MGI
61
MVI
66
MTI
62
MOI
66
Cap
$4.5B
Growth
+30%21
Boku, Inc.BOKU.GB🇬🇧
Revenue +18%/yr · +14%/yr per share · asset light
G 60V 67O 64Cap $424.5M
MGI
60
MVI
67
MTI
46
MOI
64
Cap
$424.5M
Growth
+30%22
Palo Alto Networks, Inc.PANW🇺🇸
Revenue +18%/yr · +13%/yr per share · asset light
G 59V 42O 53Cap $313.2B
MGI
59
MVI
42
MTI
37
MOI
53
Cap
$313.2B
Growth
+31%23
Skillcast Group plcSKL.GB🇬🇧
Revenue +16%/yr · +13%/yr per share · asset light
G 59V 73O 64Cap $53.5M
MGI
59
MVI
73
MTI
43
MOI
64
Cap
$53.5M
Growth
+16%24
Synopsys, Inc.SNPS🇺🇸
Revenue +16%/yr · +12%/yr per share · asset light
G 56V 50O 56Cap $86.5B
MGI
56
MVI
50
MTI
38
MOI
56
Cap
$86.5B
Growth
+42%25
VusionVU.FR🇫🇷
Revenue +38%/yr · +37%/yr per share · scale economics
G 56V 55O 58Cap $2.6B
MGI
56
MVI
55
MTI
55
MOI
58
Cap
$2.6B
Growth
+54%26
Grindr Inc.GRND🇺🇸
Revenue +28%/yr · +24%/yr per share · asset light
G 54V 65O 60Cap $2.6B
MGI
54
MVI
65
MTI
52
MOI
60
Cap
$2.6B
Growth
+38%27
InterDigital, Inc.IDCC🇺🇸
Revenue +13%/yr · +11%/yr per share · asset light
G 51V 57O 54Cap $8.1B
MGI
51
MVI
57
MTI
48
MOI
54
Cap
$8.1B
Growth
+13%28
Qualys, Inc.QLYS🇺🇸
Revenue +11%/yr · +14%/yr per share · asset light
G 48V 52O 48Cap $5.6B
MGI
48
MVI
52
MTI
54
MOI
48
Cap
$5.6B
Growth
+11%29
Salesforce, Inc.CRM🇺🇸
Revenue +11%/yr · +12%/yr per share · asset light
G 47V 62O 51Cap $152.6B
MGI
47
MVI
62
MTI
52
MOI
51
Cap
$152.6B
Growth
+13%
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Research tool, not investment advice. Rankings are generated by our models from company filings and market data, refresh nightly, and are identical for every visitor. Scores reflect our methodology and are not recommendations to act. Data as of 2026-08-17.