In this article, we will list the 5 Best SaaS Stocks to Buy According to Hedge Funds. Please visit 10 Best SaaS Stocks to Buy According to Hedge Funds if you’d like to see an extended list and the methodology behind it.
5. Cloudflare, Inc. (NYSE:NET)
Cloudflare, Inc. (NYSE:NET), with significant hedge fund interest, ranks among the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 84 hedge funds held bullish positions in the stock, representing $3.55 billion in aggregate value.
A close-up of a hand tapping away at a keyboard, using the company’s software to carry out a transaction.
As Cloudflare, Inc. (NYSE:NET)’s role in AI-agent infrastructure continues to grow and its path toward long-term profitability targets accelerates, the stock retains analyst confidence.
On May 22, 2026, RBC Capital reiterated an “Outperform” rating and $240 price target on Cloudflare, Inc. (NYSE:NET), pointing to the company’s June 9 Analyst Day as a potential catalyst.
The firm said management is expected to focus on Cloudflare’s AI and agentic positioning, unit economics of its Acts, and the path to Rule of 50 economics. RBC also said Cloudflare appears ahead of schedule toward its prior $5 billion 2028 revenue target, with the company generating $2.17 billion in revenue in FY25, up roughly 29.94% year-over-year. The firm argued that existing cloud infrastructure was designed for the desktop and smartphone era and breaks under the demands of AI agents, a dynamic it believes positions Cloudflare, Inc. (NYSE:NET) well for what comes next.
That view aligns with a product announcement from May 19, 2026, in which Cloudflare, Inc. (NYSE:NET) said it had integrated with Anthropic’s Claude Managed Agents to provide a fast, isolated execution environment for autonomous code delivery.
The integration lets developers run their agent loop on the Anthropic platform while using Cloudflare to execute code, secure connections, and handle custom tool calls. Cloudflare said builders can scale agent workflows globally while controlling access to private backends. Anthropic described the setup as decoupling the brain from the hands, with the core agent loop running on Anthropic’s side and the execution infrastructure running on Cloudflare, Inc. (NYSE:NET).
Cloudflare, Inc. (NYSE:NET) is a leading connectivity cloud company that specializes in improving the security, performance, and reliability of websites and applications.
4. Shopify Inc. (NASDAQ:SHOP)
Shopify Inc. (NASDAQ:SHOP), with significant hedge fund interest, ranks among the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 88 hedge funds held bullish positions in the stock, representing $4.38 billion in aggregate value.
Shopify Inc. (NASDAQ:SHOP)’s latest earnings release, featuring expanding margins, accelerating GMV, and deeper integration of AI across its platform, drew attention from analysts.
On May 7, 2026, Citizens lowered its price target on Shopify Inc. (NASDAQ:SHOP) to $150 from $160 while keeping an “Outperform” rating on the shares. The firm said Shopify delivered stronger-than-expected results with solid GMV growth, expanding operating margins, and slightly better-than-consensus revenue guidance. Citizens cited broad-based merchant strength, disciplined execution, and continued investment in AI and customer acquisition as supporting factors.
That note followed first-quarter earnings reported on May 5, 2026.
Shopify Inc. (NASDAQ:SHOP) posted 34% revenue growth and a 15% free cash flow margin in the quarter. GMV topped $100 billion in the first quarter, with CFO Jeff Hoffmeister describing broad-based growth across geographies, merchant sizes, and channels. President Harley Finkelstein said Shopify has entered the AI era with what he called a clear edge, pointing to two decades of commerce intelligence as an advantage he expects to compound through 2026.
Looking ahead, Shopify Inc. (NASDAQ:SHOP) guided for second-quarter revenue growth in the high-twenties percentage range year-over-year. The company expects gross profit dollars to grow at a mid-twenties rate, operating expenses as a percentage of revenue to be 35% to 36%, stock-based compensation of $145 million, and free cash flow margin in the mid-teens.
Several other analysts reiterated their bullish ratings on Shopify Inc. (NASDAQ:SHOP).
Shopify Inc. (NASDAQ:SHOP) provides an e-commerce SaaS platform that enables businesses to sell online and in person.
3. Intuit Inc. (NASDAQ:INTU)
With significant hedge fund interest, Intuit Inc. (NASDAQ:INTU) secures a spot on our list of the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 92 hedge funds held bullish positions in the stock, representing $6.96 billion in aggregate value.
After the company released its latest quarterly updates, Intuit Inc. (NASDAQ:INTU) announced an expansion of its AI offerings.
On May 20, 2026, Intuit Inc. (NASDAQ:INTU) said it would cut 17% of its full-time workforce, or nearly 3,000 roles globally, to simplify its organizational structure and focus on key areas, including AI. Intuit expects restructuring charges of $300 million to $340 million tied to the cuts to be recognized in the fourth quarter. The announcement sent shares down 14% after the bell.
Intuit Inc. (NASDAQ:INTU) also lowered its fiscal 2026 TurboTax revenue forecast to a range of $5.277 billion to $5.282 billion, from a prior projection of $5.305 billion to $5.330 billion. CEO Sasan Goodarzi said total IRS tax filings are projected to drop nearly 30 basis points this season, roughly 2 million short of broader economic forecasts, which he described as the steepest industry-wide contraction since the post-COVID era. Goodarzi added that Intuit plans to take pricing actions at the higher end of its portfolio and announced a platform expansion set for August.
For the quarter ended April 2026, Intuit Inc. (NASDAQ:INTU) reported revenue of $8.56 billion, short of the analyst consensus of $8.61 billion. Adjusted EPS came in at $12.80, ahead of the $12.57 estimate. Despite the TurboTax cut, Intuit raised its full-year revenue outlook to $21.34 billion to $21.37 billion, up from its prior range of $21 billion to $21.19 billion.
On May 28, 2026, Intuit Inc. (NASDAQ:INTU) announced Analytics AI, a conversational analytics agent in Mailchimp that connects campaign performance, audience data, and revenue outcomes. The company also expanded Mailchimp integrations with Claude, Wix, and WooCommerce.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform behind TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite, serving about 100 million customers worldwide.
2. Salesforce, Inc. (NYSE:CRM)
With significant hedge fund interest, Salesforce, Inc. (NYSE:CRM) secures a spot on our list of the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 101 hedge funds held bullish positions in the stock, representing $6.87 billion in aggregate value.
Salesforce, Inc. (NYSE:CRM) drew analyst attention after reporting a strong quarterly beat.
On May 27, 2026, Salesforce, Inc. (NYSE:CRM) reported first-quarter revenue of $11.13 billion, above the analyst estimate of $11.05 billion. Adjusted EPS came in at $3.88, well ahead of the $3.12 consensus. Subscription and support revenue grew 14%, also topping expectations. CEO Marc Benioff said the company secured 98 new deals with over $1 million in annual contract value during the quarter.
However, the results were overshadowed by a softer outlook.
Salesforce, Inc. (NYSE:CRM) guided for second-quarter revenue of $11.27 billion to $11.35 billion, below the analyst consensus of $11.36 billion. Shares were marginally down in volatile extended trading following the report.
Two analyst updates followed on May 28, 2026.
TD Cowen lowered its price target to $240 from $250 while keeping a “Buy” rating, noting first-quarter organic growth came in line at 7% in constant currency. The firm said management continues to expect organic acceleration in the second half, driven by strength in Agentforce, Data, and Slack pipelines.
Separately, KeyBanc analyst Jackson Ader trimmed the firm’s price target to $290 from $300 and kept an “Overweight” rating, saying in-line organic metrics and a reiteration of constant currency guidance were acceptable for a year that checks and investor conversations had broadly described as sluggish.
Salesforce, Inc. (NYSE:CRM) is an AI-powered global enterprise software company whose Customer 360 platform integrates autonomous AI agents and machine learning models to automate CRM workflows.
1. ServiceNow, Inc. (NYSE:NOW)
ServiceNow, Inc. (NYSE:NOW), with significant hedge fund interest, ranks among the 10 best SaaS stocks to buy according to hedge funds. As of Q1 2026, 108 hedge funds held bullish positions in the stock, representing $5.45 billion in aggregate value.
On May 26, 2026, Oppenheimer reiterated an “Outperform” rating and $130 price target on ServiceNow, Inc. (NYSE:NOW) after conducting interviews with 64 customers to assess enterprise IT budget trends, AI adoption, and growth plans.
The firm said overall demand and new software spending within the installed base appear healthy despite pressure on headcount growth. AI, IT, Risk, and Security solutions were cited as top investment priorities among surveyed customers. Oppenheimer said the findings raise conviction for a stronger second half of 2026 and potential reacceleration in 2027. The firm also noted some customers expressed concern that AI agents replacing entry-level support roles could erode the talent pool needed for higher-tier positions.
That update followed a coverage reinstatement from BofA on May 18, 2026.
The firm restarted coverage with a “Buy” rating and a $130 price target, arguing that ServiceNow, Inc. (NYSE:NOW) stands to benefit from, rather than be displaced by, new AI solutions. BofA said the company’s depth and breadth of workflow entrenchment across IT, employee, and customer workflows uniquely position it to capture upside from autonomous agent deployments.
ServiceNow, Inc. (NYSE:NOW) provides an AI-enabled enterprise platform for workflows across IT, security, risk, HR, finance, legal, procurement, customer service, and related business functions.
While we acknowledge the potential of NOW 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 NOW and that has 100x upside potential, check out our report about the cheapest AI stock.
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