China Software: March Revenues Slowed to 11.6% YoY

China's software revenue growth moderated to 11.6% YoY in March 2026, but signs of recovery are emerging as April SMB PMI data crossed back into expansion territory. Growing enterprise investment in AI agents and Generative AI features is expected to support a stronger second quarter.

Key Takeaways

• 1.China software revenue growth slowed slightly to 11.6% YoY in March 2026, consistent with the 1Q26 aggregate growth rate.
• 2.The Small and Medium-sized Business (SMB) Purchasing Managers' Index (PMI) recovered to 50.1 in April, indicating an expansion that may signal a recovery in software spending.
• 3.Enterprise spending is shifting towards Generative AI (Gen-AI) tools and 'AI agents' to improve productivity and efficiency in manufacturing and HR.

Table of Contents

• China Software
• Mar software industry growth slowed; Apr SMB PMI MoM improve
• China software sector key indicators
• Software Monthly: Mar rev growth at 11.6% YoY, similar to Jan-Feb growth at 11.7% YoY
• Mar 2026 China software quick read
• China software market snapshot
• China security software / IT services market +10% / +13% YoY in March 2026
• Disclosure Appendix

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