In this article, we will look at the 11 Best SaaS Stocks to Buy Right Now.
On December 10, Ashley MacNeill from Vista Equity appeared on a CNBC television interview to discuss her outlook on the software industry amidst market weakness in the sector. MacNeill highlighted that the main reason behind the software market lagging in 2025 is that we are still in the early stages of software adapting to AI. She noted that during the year, the market was essentially looking for proof points of software adapting to AI advancements. The AI adoption cycle happens in waves, and MacNeill noted that in 2025, we saw the hardware companies linked with AI, including hyperscalers, chip manufacturers, and other mega-cap stocks, realize the economic benefits. However, now the market is setting up for phase 3 of the AI cycle, which entails software adapting AI to its fullest.
Macneill noted that currently, the market is trying to understand how the SaaS model transforms to an agentic model. She believes that in 2026, the market will define some proof points or KPIs to gauge the effectiveness of early adopters of the agentic model within the software space. She noted that we are going to see two types of software providers. One like Salesforce that provides agentic solutions as its core services. Secondly, there are going to be companies that do not provide direct agentic solutions but use AI to provide software solutions.
With that, let’s take a look at the 11 Best SaaS Stocks to Buy Right Now.
Our Methodology
To come up with the 11 Best SaaS Stocks to Buy Right Now, we used ETFs, including iShares Expanded Tech-Software Sector ETF, Invesco AI, and Next Gen Software ETF. Using these ETFs, we aggregated a list of SaaS stocks for which analysts expect positive upside. Lastly, we ranked these stocks based on the number of hedge fund holders sourced from Insider Monkey’s Q3 2025 database. Please note that the data was recorded on December 12.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best SaaS Stocks to Buy Right Now
11. Workday, Inc. (NASDAQ:WDAY)
Analyst Upside Potential: 24.98%
Number of Hedge Fund Holders: 64
Workday, Inc. (NASDAQ:WDAY) is one of the Best SaaS Stocks to Buy Right Now. The share price of Workday, Inc. (NASDAQ:WDAY) fell by more than 7.85% a day after its fiscal Q3 2026 earnings release on November 25. The stock also remains down by 10.73% on a year-to-date basis. On December 1, Robert Simmons, CFA from Rosenblatt Securities, initiated a Hold rating on the stock with a price target of $45.
Analyst Simmons maintained a cautiously optimistic outlook on the stock based on the company’s future prospects and the market position. He noted that Workday, Inc.’s (NASDAQ:WDAY) core business, Human Capital Management, is expected to grow at a slower rate due to increased competition and market saturation. On the other hand, while the other businesses of the company are expected to grow at a faster pace, Simmons argues that they haven’t shown any substantial impact on the overall growth of the company.
Simmons highlighted that he remains optimistic regarding Workday’s future prospects, driven by its strong margins. However, the stock currently trades at a premium to its peers. Therefore, Simmons initiated a Hold rating on the stock and is waiting for a better entry point.
During fiscal Q3 2026, Workday, Inc. (NASDAQ:WDAY) grew its revenue by 12.59% year-over-year to reach $2.43 billion, surpassing estimates by $14.54 million. The EPS of $2.32 also topped consensus by $0.15. Management attributed the performance to its diversity of businesses and momentum across its AI portfolio.
Workday, Inc. (NASDAQ:WDAY) offers an enterprise AI platform that manages people, money, and agents.
10. Datadog, Inc. (NASDAQ:DDOG)
Analyst Upside Potential: 46.43%
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the Best SaaS Stocks to Buy Right Now. Wall Street maintains a positive outlook on Datadog, Inc. (NASDAQ:DDOG) despite a 21.49% decrease in share price over the past month. Analysts’ 12 month price target reflects more than 46% upside from the current level.
Recently, on December 3, Datadog, Inc. (NASDAQ:DDOG) announced the expansion of its partnership with AWS and also launched a series of products at AWS re:Invent. Management unveiled more than a dozen new product features across AI observability, storage costs, serverless infrastructure, and security. The company already integrates more than 1,000 services, including 100 AWS-specific features, allowing customers a single pane view. Some of the key features highlighted at re:Invent include LLM Observability, New Kiro powers, and Bits AI enhancements, among others.
That said, earlier on November 24, William Power from Robert W.Braid reiterated a Buy rating on Datadog, Inc. (NASDAQ:DDOG) with a $220 price target. The analyst noted that the company’s share price has fallen mainly due to concerns regarding its competitor’s acquisition of Chronosphere. William Power argues that the company’s strategic position in the observability market remains strong, driven by its recent contract extensions from AI players.
Power remains optimistic regarding Datadog, Inc.’s (NASDAQ:DDOG) growth trajectory and finds the recent weakness in the share price to be a buying opportunity.
Datadog, Inc. (NASDAQ:DDOG) integrates monitoring, logging, application performance insights, and AI-driven tools through its unified SaaS platform. The company helps organizations manage and secure complex cloud environments in real time.
9. Palantir Technologies Inc. (NASDAQ:PLTR)
Analyst Upside Potential: 8.95%
Number of Hedge Fund Holders: 81
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Best SaaS Stocks to Buy Right Now. On December 15, Palantir Technologies Inc. (NASDAQ:PLTR) announced the renewal of its three year contract with France’s DGSI, which is the country’s domestic intelligence agency.
The extension results in a partnership that has lasted more than a decade, with Palantir supplying its proprietary software along with related integration, service and deployment services. Management noted that this extension comes at a critical time when demand for increased technology and data privacy has become important for governance. Notably, Palantir Technologies Inc.‘s (NASDAQ:PLTR) tools has helped the French government successfully and securely host important events including 2024 Paris Olympics and Paralympics.
Earlier on December 10, Palantir Technologies Inc. (NASDAQ:PLTR) also announced securing a $446 million contract by the US Navy. This comes as the company is partnering with the US Navy on ShipOS, which is a new initiative that uses Palantir’s Foundry and AI Platform to modernize the Maritime Industrial Base.
That said, Wall Street also maintains a positive outlook on the stock. On December 9, Mariana Perez from Bank of America Securities reiterated a Buy rating on the stock with a $255 price target. Earlier on December 5, Daniel Ives also reiterated a Buy rating on the stock with an associated price target of $230.
Palantir Technologies Inc. (NASDAQ:PLTR) builds data integration and decision-support software used by government and commercial customers. The company’s platforms, including Foundry and AIP, are designed to connect siloed data, model complex operations, and support real-time analysis for planning and execution at scale.
8. Autodesk, Inc. (NASDAQ:ADSK)
Analyst Upside Potential: 24.62%
Number of Hedge Fund Holders: 83
Autodesk, Inc. (NASDAQ:ADSK) is one of the Best SaaS Stocks to Buy Right Now. On December 11, Saket Kalia from Barclays reiterated a Buy rating on the stock with a $390 price target. Earlier on November 28, Taylor McGinnis from UBS also reiterated a Buy rating on Autodesk, Inc. (NASDAQ:ADSK) and also raised the price target from $385 to $400.
The positive outlook on the stock follows the company’s fiscal Q3 2025 earnings release on November 25. During the quarter, the company grew its revenue by 18.03% year-over-year to $1.85 billion, ahead of estimates by $46.47 million. Moreover, the EPS of $2.67 also topped estimates by $0.17. Management attributed strong quarterly performance to AECO outperformance and above-expectation results across the board.
Notably, Autodesk, Inc. (NASDAQ:ADSK) also raised its full-year guidance and now expects revenue in the range of $7.150 billion and $7.165 billion, up from the previous guidance of $7.025 billion and $7.075 billion. GAAP operating margins expectation was also raised from a range of 21% – 22% to around 23% in the latest earnings release.
Analyst Taylor McGinnis of UBS noted that the company’s revenue growth in the latest quarter, along with optimistic guidance for Q4 and the full-year, points towards sustainable growth. She added that although management has not yet provided full-year 2027 guidance, the company expects billings to remain elevated in the first quarter of 2027. McGinnis also likes the company’s disciplined execution, evident by a 3% increase in GAAP operating margin during Q3 and improved guidance for the full year.
Autodesk Inc. (NASDAQ:ADSK) provides 3D design, engineering, and entertainment technology solutions worldwide.
7. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside Potential: 21.28%
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the Best SaaS Stocks to Buy Right Now. On December 12, Mark Moerdler from Bernstein reiterated a Buy rating on Adobe Inc. (NASDAQ:ADBE) but lowered the price target from $508 to $506. Earlier on December 11, Brian Schwartz from Oppenheimer also reiterated a Buy rating on the stock and lowered the price target from $460 to $430.
The ratings follow the company’s fiscal Q4 2025 results released on December 10. Adobe Inc. (NASDAQ:ADBE) grew its quarterly revenue by 10.49% year-over-year to reach $6.19 billion, ahead of the estimates by $83.30 million. Moreover, the EPS of $5.50 also topped the consensus by $0.10. The growth was driven by an 11% year-over-year growth in the Digital Media segment and a 9% growth in the Digital Experience segment.
Management also provided optimistic revenue and EPS targets for fiscal 2026. The company expects full-year revenue to be in the range of $25.90 billion to $26.10 billion, along with an EPS of $17.90 to $18.10.
Brian Schwartz from Oppenheimer noted that while the Q4 results and the FY 2026 guidance were above the consensus, the guidance implies high single-digit growth and lower operating margins. Schwartz believes that this presents tough optics for the company and also paves the way for unwanted new opinions on the stock.
On the other hand, Mark Moerdler from Bernstein noted that he is becoming more constructive on Adobe Inc. (NASDAQ:ADBE) as the company’s AI implementation strategy across all customer segments is gaining more clarity.
Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.
6. Intuit Inc. (NASDAQ:INTU)
Analyst Upside Potential: 21.74%
Number of Hedge Fund Holders: 96
Intuit Inc. (NASDAQ:INTU) is one of the Best SaaS Stocks to Buy Right Now. Intuit Inc. (NASDAQ:INTU) is up more than 5.25% since the release of its fiscal Q1 2026 results on November 20. Wall Street has maintained a positive outlook on the stock ever since.
On November 24, Siti Panigrahi from Mizuho Securities reiterated a Buy rating on the stock with a $875 price target. Earlier, on November 21, Keith Weiss from Morgan Stanley also reiterated a Buy rating on the stock with a $880 price target.
During the fiscal Q1 2026, Intuit Inc. (NASDAQ:INTU) topped Wall Street estimates and reiterated full-year guidance. The company grew its revenue by $18.34% year-over-year to $3.89 billion, exceeding expectations by $128 million. The EPS of $3.34 also topped estimates by $0.25. Management attributed the growth to be driven by a 25% increase in QuickBooks Online Accounting revenue. QuickBooks benefited from higher effective prices, customer growth, and mix-shift. Overall, the Global Business Solutions revenue reached $3 billion, reflecting 18% year-over-year increase.
Analyst Keith Weiss of Morgan Stanley noted that he believes Intuit Inc. (NASDAQ:INTU) is well-positioned for growth despite conservative revenue guidance, which indicates some deceleration. Management expects full year 2026 revenue to grow by 12% to 13%, below the 16% year-over-year growth the company posted in fiscal 2025. The analyst added that while the investors might need to demonstrate patience, he expects the company to revise estimates in the second half of fiscal 2026.
Intuit Inc. (NASDAQ:INTU), a global financial technology platform, offers AI-powered tax, credit, accounting, and marketing solutions.
5. Snowflake Inc. (NYSE:SNOW)
Analyst Upside Potential: 29.25%
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the Best SaaS Stocks to Buy Right Now. The share price of Snowflake Inc. (NYSE:SNOW) has fallen more than 17.7% since its fiscal Q3 2026 earnings release on December 3. The cautious investor sentiment comes despite the company exceeding Wall Street estimates and is mainly due to concerns regarding slowing growth. However, Wall Street maintains a positive outlook with analysts’ 12 month average price target reflecting more than 29% upside from the current level.
Recently, on December 8, Tyler Radke from Citi reiterated a Buy rating on the stock and lowered its price target from $310 to $300. Earlier on December 4, UBS maintained a Buy rating on Snowflake Inc. (NYSE:SNOW) with a $310 price target.
The company during fiscal Q3 2026 grew its revenue by 28.75% year-over-year to $1.21 billion, surpassing estimates by $28.9 million. Moreover, the EPS of $0.35 also came in ahead of the expectations by $0.04. Management attributed the growth to continued strength in the company’s core business and expansion into data engineering and AI workloads. Notably, management also reported a net revenue retention rate of 125% and also added a record 615 new customers during the quarter.
Tyler Radke from Citi lowered the price target on Snowflake Inc. (NYSE:SNOW) despite the performance. The analyst noted the earnings beat was lower than the firm’s expectations, although he believes the Q4 sales guidance of 27% is strong.
Analysts at UBS also called the recent quarter slightly disappointing. The firm highlighted that the 29% product revenue growth in the third quarter was lower than the 32% growth in the second quarter, reflecting a slight slowdown in quarter-over-quarter growth. UBS also cited optimistic Q4 guidance as a key factor behind its positive outlook on the stock.
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data platform company. It offers an AI Data Cloud platform, which enables organizations to build, use, and share data, applications, and AI.
4. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside Potential: 32.57%
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the Best SaaS Stocks to Buy Right Now. On December 2, ServiceNow, Inc. (NYSE:NOW) announced its intent to acquire Veza, which is a leader in Identity Security. The share price has risen by around 5% since the announcement. However, the stock remains down 17.95% year-to-date.
Management noted that this acquisition targets a critical cybersecurity gap between managing access permissions for humans, machines, and AI agents with the rise of AI-powered threats. With the integration of Veza’s technology, the company aims to improve its Security and Risk products by creating a unified platform. Moreover, the strategic acquisition will also enhance ServiceNow, Inc.’s (NYSE:NOW) AI Control Tower and security suite. The deal is subject to customary regulatory approvals and closing conditions.
Wall Street also resumed its positive sentiment on the stock following the press release. On December 3, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on the stock with a $1,150 price target. On the same day, Raimo Lenschow from Barclays also reiterated a Buy rating on the stock with a $1,225 price target.
Analyst Gregg Moskowitz from Mizuho Securities noted Veza to be an interesting asset for ServiceNow, Inc. (NYSE:NOW), mainly due to the company’s potential combination with ServiceNow’s AI control tower and existing risk and security business. Gregg noted that while the transaction details were not disclosed, the deal is expected to close at over $1 billion. He added that recent checks on Veza indicate that the company has demonstrated good mid-market success in IGA.
ServiceNow, Inc. (NYSE:NOW) provides a platform that integrates workflows, data, and AI to coordinate how work flows across large organizations. The company is headquartered in Santa Clara, California, and reports running tens of billions of workflows each year.
3. Salesforce, Inc. (NYSE:CRM)
Analyst Upside Potential: 25.79%
Number of Hedge Fund Holders: 119
Salesforce, Inc. (NYSE:CRM) is one of the Best SaaS Stocks to Buy Right Now. On December 11, Salesforce, Inc. (NYSE:CRM) announced an expanded partnership with the U.S. Department of Transportation (USDOT) to modernize its operations using the company’s AI CRM tools.
The partnership expands on the previous collaboration with which the company has already been modernizing USDOT’s core functions, including real-time interstate data sharing for citizen safety and simplifying billions in federal grant management. With the recent announcement, USDOT will now deploy Agentforce, the company’s AI agent platform. to automate routine tasks and boost efficiency across air, road, rail, and maritime networks.
Management of Salesforce, Inc. (NYSE:CRM) noted that USDOT will use its AI agent platform by providing automated services, including around-the-clock citizen support, analyzing vast, complex datasets, and quickly reviewing grant applications.
That said, Salesforce, Inc. (NYSE:CRM) posted mixed results for its fiscal Q3 2026 on December 3. The company grew its revenue by 8.63% year-over-year to $10.26 billion, but missed estimates by $13.14 million. On the bright side, the EPS of $3.25 topped the consensus by $0.39. Management attributed revenue growth to 10% year-over-year increase in subscription & support revenue. Notably, management also raised the full-year guidance to $41.45 billion to $41.55 billion, up from the previous expectation of $41.1 billion to $41.3 billion.
Wall Street maintains a positive outlook despite missed revenue estimates. On December 11, Gregg Moskowitz from Mizuho Securities has a $340 price target. Earlier, on December 9, Keith Weiss from Morgan Stanley also reiterated a Buy rating on Salesforce, Inc. (NYSE:CRM) but lowered the price target from $405 to $398.
Salesforce, Inc. (NYSE:CRM) provides customer relationship management software and cloud-based applications spanning sales, service, marketing, commerce, and analytics for enterprises worldwide.
2. Oracle Corporation (NYSE:ORCL)
Analyst Upside Potential: 50.87%
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the Best SaaS Stocks to Buy Right Now. Wall Street has a mixed outlook on Oracle Corporation (NYSE:ORCL) since the release of its fiscal Q2 2026 results on December 10. The company posted mixed results during the quarter, and the stock has fallen more than 14.82% since the release.
Recently, on December 12, Goldman Sachs analyst Kash Rangan lowered the firm’s price target on the stock from $320 to $220, and maintained a Hold rating on the stock. A day earlier, on December 11, Brett Huff from Stephens also lowered the price target from $331 to $254, while keeping a Hold rating on the stock.
During the quarter, Oracle Corporation (NYSE:ORCL) grew its revenue by 14.22% year-over-year to $16.06 billion, but fell short of expectations by $134.2 million. On the bright side, the EPS of $2.26 topped estimates by $0.62. The growth was driven by a 32% increase in Cloud Revenue, 68% increase in Cloud Infrastructure revenue, and 11% increase in Cloud Application revenue. Notably, the remaining performance obligation revenue went up by 438% year-over-year to $523 billion.
Analyst Kash Rangan of Goldman Sachs lowered the price target on the stock, noting the revenue growth to be modest, along with high capital expenditure and free cash flow burn. The analyst highlighted that this, topped with the existing concerns regarding financing, tenant concentration, and valuation, results in a cautious rating.
Oracle Corporation (NYSE:ORCL) is a database management and cloud service provider.
1. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside Potential: 31.17%
Number of Hedge Fund Holders: 312
Microsoft Corporation (NASDAQ:MSFT) is one of the Best SaaS Stocks to Buy Right Now. On December 10, Jefferies released a research note highlighting that Microsoft Corporation (NASDAQ:MSFT) is set to benefit from OpenAI’s expected enterprise business expansion in 2026. The firm had reiterated a Buy rating on the stock on December 3, with a price target of $675.
Jefferies highlighted that OpenAI’s enterprise sales now represent 40% of its revenue, up from 30% at the start of the year. Moreover, the firm also likes the recent appointment of Denise Dresser as Chief Revenue Officer. Dresser has previously served as CEO of Slack and also brings 14 years of experience from Salesforce.
Considering the 27% ownership of Microsoft Corporation (NASDAQ:MSFT) in OpenAI. The company is set to benefit from OpenAI’s enterprise business expansion, despite the company’s competing products like Microsoft 365 Copilot and GitHub Copilot.
That said, earlier on December 9, Microsoft Corporation (NASDAQ:MSFT) announced its $17.5 billion investment in India to drive diffusion at a population scale. This also marks the company’s largest investment in Asia, even greater than its $3 billion investment in the US. The company will invest around $17.5 billion in India over the next four years. This investment will be used to enhance the cloud and AI infrastructure of the country. Microsoft Corporation (NASDAQ:MSFT) noted that it will have the largest hyperscale presence with its new datacenter expected to go live in mid 2026.
Microsoft Corporation (NASDAQ:MSFT) delivers cloud, AI, software, and computing solutions globally, through its Azure, Microsoft 365, and AI platforms.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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