Amplitude in 2026: The AI-Powered Catalyst Story That's Finally Taking Shape

Product analytics leader Amplitude (NASDAQ: AMPL) stumbled in 2025, finishing the year up just 9.8% despite a surge in underlying momentum. The prediction of a major breakout didn’t materialize as expected, but what’s happening now in 2026 tells a different story. The company’s fundamentals have shifted dramatically since early 2025, and market conditions are finally aligning with the operational improvements already underway.

The 2025 Pause and 2026 Acceleration

What happened to Amplitude during 2025 was more a matter of timing than fundamentals. While the stock underperformed the S&P 500 in that period, the company was quietly rebuilding its platform and positioning itself for the next growth phase. The three quarters of data through Q3 revealed a company in transition—not yet recognized by the market, but clearly gaining traction internally.

Now that we’re into 2026, the early indicators suggest conditions are ripening for what could be a meaningful revaluation. The company isn’t just improving; it’s accelerating.

The Operational Momentum Building Behind the Scenes

Amplitude’s third-quarter performance showed revenue climbing 16% to $347 million, with remaining performance obligations surging 37% to $391.9 million. That nearly two-to-one ratio between obligation growth and current revenue signals something important: customers are committing to longer contracts and expanding their usage.

The company’s product line expansion is particularly noteworthy. New features like AI visibility—which shows marketers how their brands perform in AI search results—and web experimentation tools are reshaping the value proposition. Marketers can now run experiments three times faster than before without requiring developer involvement. These aren’t incremental improvements; they’re genuine workflow transformations.

With 27% of Fortune 500 companies as customers, Amplitude has both a broad base and significant room to expand wallet share. As new AI-driven tools prove their ROI, existing customers will likely deepen their engagement, and net-new customers will find the platform increasingly hard to ignore.

Where the Valuation Opportunity Sits

At a price-to-sales ratio of just 4, Amplitude trades at a fraction of what many cloud software companies command, particularly those with accelerating growth trajectories. For a product analytics leader—rated by Forrester Wave as a leader in digital analytics and named best-in-category by G2—this valuation seems to underappreciate the company’s market position.

The company operates near break-even on an adjusted basis, which is standard for the software sector. Wall Street’s current expectations call for 14% revenue growth in 2026, yet the company achieved 18% GAAP growth in Q3. If Amplitude can maintain or exceed its recent trajectory, the gap between consensus expectations and reality could spark meaningful upside.

At a $1.4 billion market cap, even modest execution excellence puts a meaningful revaluation well within reach. The math isn’t complicated: strong fundamentals plus underrated positioning plus accelerating growth often leads to multiple expansion.

What This Means for Investors Watching 2026

The investment case for Amplitude isn’t about making massive bets on AI trends broadly. It’s about a company with real customers, proven product leadership, and expanding feature sets finally being recognized by the market. The 2025 stumble was frustrating for early believers, but it created exactly the kind of foundation 2026 could build upon.

The company has navigated the post-pandemic software spending pullback, maintained customer relationships, and emerged with a more compelling product. Momentum is undeniably building. Whether 2026 delivers the breakout many expected in 2025 remains to be seen, but the operational and market conditions now appear far more favorable than they were twelve months ago.