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$1.45T
Avg YTD-14.9%
Avg 3-Year+32.5%
Avg net margin16.9%

Sector Highlights

Top picks by key criteria across the sector

Top YTD Performer
Zoom

Zoom

ZM

+24.5%

Year-to-date return

Strongest Fundamentals
SAP

SAP

SAP.DE
ProfitabilityExcellent
LiquidityAverage
LeverageExcellent
Cash FlowExcellent
ValuationGood

Proprietary section scores

Market Leader
Oracle

Oracle

ORCL

$522.06B

Market cap (USD equivalent)

Sector Performance

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

ZoomZoom
+24.5%
CadenceCadence
+11.7%
DatadogDatadog
+6.6%
OracleOracle
-6.9%
DassaultDassault
-18.7%
IBMIBM
-21.7%
SAPSAP
-26.7%
DocuSignDocuSign
-28.2%
SalesforceSalesforce
-28.9%
HubSpotHubSpot
-37.4%
ServiceNowServiceNow
-38.0%

Our Top 11 Software Picks

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

Oracle

Oracle

ORCL
NYSE
181.52USD+5.64%
YTD -6.9%
IBM

IBM

IBM
NYSE
231.80USD-0.17%
YTD -21.7%
SAP

SAP

SAP.DE
XETRA
148.40EUR+1.99%
YTD -26.7%
Salesforce

Salesforce

CRM
NYSE
188.37USD+2.48%
YTD -28.9%
ServiceNow

ServiceNow

NOW
NYSE
94.93USD+4.13%
YTD -38.0%
Cadence

Cadence

CDNS
NASDAQ
349.21USD+2.43%
YTD +11.7%
Datadog

Datadog

DDOG
NASDAQ
144.99USD+3.17%
YTD +6.6%
Zoom

Zoom

ZM
NASDAQ
107.43USD+3.86%
YTD +24.5%
Dassault

Dassault

DSY.PA
PAR
19.39EUR+1.54%
YTD -18.7%
HubSpot

HubSpot

HUBS
NYSE
251.19USD+4.71%
YTD -37.4%
DocuSign

DocuSign

DOCU
NASDAQ
49.08USD+2.34%
YTD -28.2%

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
G
A
IBM

IBM

IBM

G
A
W
E
G
SAP

SAP

SAP.DE

E
A
E
E
G
Salesforce

Salesforce

CRM

G
W
E
G
G
ServiceNow

ServiceNow

NOW

G
A
E
G
W
Cadence

Cadence

CDNS

E
E
E
E
P
Datadog

Datadog

DDOG

W
E
E
G
P
Zoom

Zoom

ZM

E
E
E
G
G
Dassault

Dassault

DSY.PA

G
E
E
E
G
HubSpot

HubSpot

HUBS

P
G
E
E
P
DocuSign

DocuSign

DOCU

A
A
E
G
A
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)
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