5 Best Software Stocks to Buy in 2026

​3. Oracle Corporation (NYSE:ORCL)

Number of Hedge Fund Holders: 115

Oracle Corporation (NYSE:ORCL) is one of the Best Software Stocks to Buy in 2026. Despite a 40% decline in share price over the past 6-months, analysts see more than 73% upside over the next 12-months.

​Recently, on June 30, Freedom Broker lowered the price target on Oracle Corporation (NYSE:ORCL) from $230 to $210 and maintained a Buy rating on the shares. The firm noted  that the company’s fiscal Q4 2026 results capped a year in which the company transformed from a traditional enterprise-software player into an aggressive builder of AI compute infrastructure.

​The firm highlighted that the quarter reflected solid cloud reacceleration and application momentum. Freedom Broker noted that now the quarterly performance matters less, considering the strong backlog, which gives visibility into the future of a capital program big enough to reshape the company’s balance sheet.

​He highlighted that the main question for the company is whether it can fund the massive buildout, convert that backlog into actual revenue and cash, and protect its credit standing along the way. The firm noted that while the execution has been good, it is not good enough for a re-rating.

Oracle Corporation (NYSE:ORCL) provides information technology related products and services to enterprises, through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas and was founded on June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.

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