Software Sector

Best Software Stocks in 2026

This category encompasses companies that develop enterprise software, cloud-based solutions, collaboration tools, or IT systems for businesses across industries. Many operate under a Software-as-a-Service (SaaS) model, offering scalable and recurring revenue streams. These firms help organizations manage workflows, boost productivity and support day-to-day operations, making them essential to digital transformation. The sector continues to benefit from strong demand for cloud services and ongoing innovation in enterprise technology.

Top picks11
Total market cap$1.48T
Avg YTD-4.9%
Avg 3-Year+30.4%
Avg net margin20.4%

Sector Highlights

Top picks by key criteria across the sector

Top YTD Performer
Datadog

Datadog

DDOG

+69.7%

Year-to-date return

Strongest Fundamentals
Zoom

Zoom

ZM
ProfitabilityExcellent
LiquidityExcellent
LeverageExcellent
Cash FlowGood
ValuationExcellent

Proprietary section scores

Market Leader
Oracle

Oracle

ORCL

$412.58B

Market cap (USD equivalent)

Sector Performance

Compare returns and net margin across our picks — toggle between periods

DatadogDatadog
+69.7%
ZoomZoom
+6.5%
DocuSignDocuSign
+2.9%
SalesforceSalesforce
-5.4%
SAPSAP
-7.3%
ServiceNowServiceNow
-8.7%
CadenceCadence
-10.5%
DassaultDassault
-13.8%
IBMIBM
-19.8%
OracleOracle
-26.5%
HubSpotHubSpot
-41.1%

Our Top 11 Software Picks

Sorted by market cap — our best-in-class selection for long-term investors

Oracle

Oracle

ORCL
NYSE
143.24USD+2.06%
YTD -26.5%
SAP

SAP

SAP.DE
XETRA
187.70EUR+0.61%
YTD -7.3%
IBM

IBM

IBM
NYSE
237.49USD-4.38%
YTD -19.8%
Salesforce

Salesforce

CRM
NYSE
250.54USD-2.00%
YTD -5.4%
ServiceNow

ServiceNow

NOW
NYSE
139.82USD-1.47%
YTD -8.7%
Datadog

Datadog

DDOG
NASDAQ
230.79USD+0.23%
YTD +69.7%
Cadence

Cadence

CDNS
NASDAQ
279.90USD+2.17%
YTD -10.5%
Dassault

Dassault

DSY.PA
PAR
20.54EUR-1.72%
YTD -13.8%
Zoom

Zoom

ZM
NASDAQ
91.94USD-1.21%
YTD +6.5%
DocuSign

DocuSign

DOCU
NASDAQ
70.40USD-2.02%
YTD +2.9%
HubSpot

HubSpot

HUBS
NYSE
236.46USD-2.27%
YTD -41.1%

Fundamental Analysis Comparison

Side-by-side view of all 5 proprietary section scores — hover a cell to see the exact score

CompanyProf.Liq.Lev.CFVal.
Oracle

Oracle

ORCL

G
G
P
A
G
SAP

SAP

SAP.DE

E
A
E
E
G
IBM

IBM

IBM

G
W
W
E
G
Salesforce

Salesforce

CRM

E
A
A
G
G
ServiceNow

ServiceNow

NOW

A
W
G
G
P
Datadog

Datadog

DDOG

W
G
E
G
P
Cadence

Cadence

CDNS

E
G
E
G
W
Dassault

Dassault

DSY.PA

G
E
E
E
G
Zoom

Zoom

ZM

E
E
E
G
E
DocuSign

DocuSign

DOCU

G
W
E
G
A
HubSpot

HubSpot

HUBS

W
G
E
E
P
Excellent(4.2–5.0)
Good(3.4–4.2)
Average(2.6–3.4)
Weak(1.8–2.6)
Poor(1.0–1.8)
Free to join

Unlock the full Software research

Access the complete fundamental breakdown, expert investment takes, live charts and AI-powered briefings for every Software stock. All in one ad-free workspace.

Start for freeView pricing →