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.
8. Zoom Communications Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 57
Zoom Communications Inc. (NASDAQ:ZM) is one of the best enterprise software stocks to buy right now. On April 15, Zoom Communications appointed Russell Dicker as its new Chief Product Officer to spearhead the company’s transition toward an AI-first system of action. Dicker, who officially assumed the role on March 30, is tasked with overseeing the global product organization and integrating ML across the portfolio. His primary focus involves using AI to automate manual follow-through and transform digital conversations into completed workflows.
With over 25 years of experience in scaling global platforms, Dicker joins Zoom Communications following a tenure as Corporate Vice President at Microsoft, where he led product and data science for Microsoft Teams. His professional background also includes high-level leadership roles at Google Maps and Amazon. A prolific innovator, he holds 27 patents and earned his degree in economics and management from Carnegie Mellon University.
Reporting to the President of Product and Engineering, Velchamy Sankarlingam, Dicker is expected to drive innovation that reduces work fragmentation. By embedding AI directly into the platform, Zoom Communications Inc. (NASDAQ:ZM) aims to provide outcome-driven experiences that simplify how tasks are executed. This hire underscores the company’s commitment to evolving beyond a traditional collaboration tool into a comprehensive context-aware automation platform.
Zoom Communications Inc. (NASDAQ:ZM) provides an AI-first collaboration platform including video, voice, and chat services. The California-based company empowers modern hybrid work by offering seamless communication and collaboration capabilities to global enterprises and individuals.
7. CrowdStrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 67
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is one of the best enterprise software stocks to buy right now. On April 30, CrowdStrike announced the integration of Anthropic’s Claude Opus 4.7 across its Falcon platform to enhance AI-driven vulnerability discovery and remediation. As a participant in Anthropic’s Cyber Verification Program, CrowdStrike will use this frontier AI model to scan codebases and generate targeted patches for global customers.
This initiative is being operationalized through Project QuiltWorks, a company coalition designed to secure AI adoption and provide a structured framework for enterprise-grade protection and reporting. The integration spans several key Falcon capabilities, including Falcon Exposure Management for risk-rated vulnerability loops and Charlotte Agentic SOAR, which brings advanced AI reasoning into security workflows.
Additionally, through Charlotte AI AgentWorks, enterprises can build custom security agents powered by Opus 4.7 while maintaining strict governance within the Falcon platform. These updates are intended to help organizations manage the increasing security demands associated with rapid AI deployment. By using a multi-AI architecture, CrowdStrike Holdings Inc. (NASDAQ:CRWD) aims to turn frontier model capabilities into functional enterprise programs supported by a network of over 10,000 certified professionals.
CrowdStrike Holdings Inc. (NASDAQ:CRWD) is a technology company that offers cybersecurity solutions through its unified platform and a SaaS subscription-based model.
6. Workday Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 70
Workday Inc. (NASDAQ:WDAY) is one of the best enterprise software stocks to buy right now. On April 28, Workday Government introduced a new Personnel Action Request/PAR Agent designed to modernize federal HR operations and accelerate critical transactions. The agent automates routine tasks such as hiring, promotions, and pay changes, which traditionally rely on fragmented, paper-based systems.
By integrating real-time visibility and automated data validation, the tool aims to reduce PAR cycle times by up to 60%, potentially cutting processing periods from several weeks to as few as nine days. Beyond speed, the PAR Agent focuses on improving accuracy and fiscal stewardship by proactively catching errors and ensuring compliance with US Office of Personnel Management/OPM requirements.
For high-volume agencies, this automation could save thousands of labor hours and millions of dollars annually by reducing manual payroll corrections and improving audit readiness. The system is built on Workday Inc.’s (NASDAQ:WDAY) AI foundation, ensuring that all actions remain permission-aware and tied to a single, auditable source of truth.
Workday Inc. (NASDAQ:WDAY) provides cloud-based enterprise software focused on human capital management, financial management, and planning solutions. Its platform enables organizations to manage payroll, workforce planning, accounting, and analytics.
While we acknowledge the potential of WDAY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WDAY and that has 100x upside potential, check out our report about the cheapest AI stock.
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