5 Best Software Stocks to Buy in 2026

4. ​ServiceNow, Inc. (NYSE:NOW)

Number of Hedge Fund Holders: 108

ServiceNow, Inc. (NYSE:NOW) is one of our Best Software Stocks to Buy in 2026. The company is set to release its fiscal Q2 2026 earnings on July 22. The stock recently rebounded around 18% after a selloff of roughly 27% over the past 6-months.

​Management expects fiscal Q2 2026 subscription revenue to grow by 22.5% year-over-year to be in the range of $3.815 billion – $3.820 billion. Wall Street is also bullish on the stock ahead of the earnings, with analysts’ 12-month average price target suggesting more than 26% upside.

​Recently, on July 2, Guggenheim upgraded ServiceNow, Inc. (NYSE:NOW) to Buy from Neutral, setting a $125 price target. The firm noted the stock to be an attractive buying opportunity considering the current valuations. Guggenheim calls ServiceNow a comfortably profitable company, which is expected to keep growing organically at double-digit rates for the foreseeable future.

The firm believes investors can access this durable, profitable growth at a price that doesn’t fully reflect it.

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California and was founded in June 2004 by Frederic B. Luddy.

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