In this article, we will discuss the 10 Best Enterprise Software Stocks to Buy Right Now.

On May 2, Tom Lee, Fundstrat’s Head of Research, appeared on CNBC to discuss the market’s recent coiled springback, asserting that the current rise is driven by abating tail risks and strong fundamental data. He highlighted that corporate earnings have been so robust that estimates are being revised upward. Lee noted that market leadership is coming from the specific groups investors want to see in a resilient economy: the Mag 7, technology, and cyclicals. Consequently, he maintained his base case for the S&P 500 to move toward 7,300 and has officially raised software (specifically the IGV ETF) to a top-pick sector alongside Mag 7 and cryptocurrency.

While April projections set earnings growth at 14.1%, the market is currently clocking a rate of 28%. Lee explained that the market is essentially feasting on these earnings, allowing it to look past issues in the oil complex, geopolitical conflicts, and occasional interest rate hikes. He described a significant margin story where every dollar of revenue upside is delivering substantial earnings growth, which he attributed to increased productivity and a rising return on investment in the US economy, a phenomenon he views as a direct positive payoff from AI integration.

Regarding concerns that the market is becoming overbought, evidenced by the NASDAQ jumping 15% in a single month and narrowing market breadth, Lee offered a structural explanation. He reconciled the fact that the median S&P constituent remains 13% below its high by characterizing the environment as a series of rolling bear markets. He pointed out that the Mag 7 and software stocks peaked and bottomed earlier than the broader market, making their current leadership textbook behavior. He expects market breadth to eventually follow this lead rather than signaling an immediate drawdown risk.

Our Methodology

We used screeners and financial media reports to identify enterprise software stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2025.

Note: All data was sourced on May 4. 

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10 Best Enterprise Software Stocks to Buy Right Now

10. Q2 Holdings Inc. (NYSE:QTWO)

Number of Hedge Fund Holders: 33

Q2 Holdings Inc. (NYSE:QTWO) is one of the best enterprise software stocks to buy right now. On April 29, Q2 Holdings reported $216.5 million in revenue for Q1 2026, marking a 14 percent year-over-year increase. GAAP net income rose to $26.6 million, compared to $4.8 million in the prior-year quarter, while adjusted EBITDA reached $60 million. Subscription annualized recurring revenue grew to $802.3 million, and the company ended the quarter with a total committed backlog of ~$2.7 billion.

The company achieved record first-quarter bookings, including nine Enterprise and Tier 1 contracts and its largest-ever fraud deal. Notable activity included a major expansion linked to the Synovus and Pinnacle Financial Partners merger. During the quarter, Q2 Holdings also focused on capital allocation by repurchasing roughly 1.8 million shares of common stock for $97.2 million, leaving $47.8 million remaining under its current authorization.

Looking ahead, Q2 Holdings Inc. (NYSE:QTWO) updated its full-year 2026 guidance, projecting total revenue between $875 million and $882 million and adjusted EBITDA between $237 million and $242 million. For Q2 2026, the company expects revenue of $214 million to $218 million. Management remains focused on advancing its AI strategy across digital banking and fraud prevention to drive continued operational efficiency and long-term value.

Q2 Holdings Inc. (NYSE:QTWO) provides digital solutions. The company offers its solutions to financial technology companies, alternative finance companies (Alt-FIs), financial institutions, and FinTechs across the US. It also provides a Digital Banking Platform and risk and fraud solutions.

9. Tyler Technologies Inc. (NYSE:TYL)

Number of Hedge Fund Holders: 40

Tyler Technologies Inc. (NYSE:TYL) is one of the best enterprise software stocks to buy right now. On April 29, Tyler Technologies reported record-breaking Q1 2026 results, with total revenues rising 8.6% to $613.5 million. This growth was driven by a 10.4% increase in recurring revenues, which now account for ~88% of the company’s total top line. Notably, SaaS revenues surged 23.5% to $222.4 million, marking the 21st consecutive quarter of growth exceeding 20% in this segment.

Profitability and cash flow showed significant strength, as adjusted EBITDA reached $177.3 million and non-GAAP diluted EPS grew to $3.09. Free cash flow more than doubled compared to the prior-year period, hitting $102.8 million. The company utilized its strong liquidity to manage capital effectively, repaying $600 million in maturing convertible debt and executing $250 million in share repurchases during the quarter.

Strategically, Tyler Technologies Inc. (NYSE:TYL) expanded its Justice portfolio through the $223 million acquisition of For The Record in April, adding AI-powered transcription and speech-to-text capabilities. Following these results, the company provided full-year 2026 guidance, projecting total revenues between $2.535 billion and $2.575 billion. Management expressed confidence in its trajectory toward 2030 goals, supported by healthy public sector demand and ongoing cloud efficiency gains.

Tyler Technologies Inc. (NYSE:TYL) provides software and technology management solutions and serves the public sector. The company operates through the Platform Technologies and Enterprise Software segments.