5 Most Profitable Software Stocks to Buy Right Now

2. Oracle Corporation (NYSE:ORCL)

Net Income (TTM): $16.98 billion

Number of Hedge Fund holdings: 115

On June 24, Evercore ISI reaffirmed an Outperform rating on Oracle Corporation (NYSE:ORCL) with a price target of $245. This follows the company’s Form 10-K filing for FY26, which the firm believes provides greater revenue visibility.

A day earlier, KeyBanc maintained an Overweight rating and a price target of $300 on Oracle Corporation (NYSE:ORCL). The firm’s optimism is driven by the company’s strengthened expense outlook. After Q4 results, the firm also raised its EPS estimates for fiscal years 2028 through 2030, exceeding consensus for both FY29 and FY30.

While noting the company’s participation in AI hyperscaler infrastructure, KeyBanc said that it represents a meaningful cost of goods expense. The moderation in operating expense growth is sufficient to offset gross margin challenges, the firm added.

With an impressive operating margin (ttm) and ROE (ttm) of 36.20% and 53.38%, respectively, Oracle Corporation (NYSE:ORCL) is among the most profitable software stocks to buy right now. This is reinforced by the stock’s 1-year consensus upside potential of 66.06%.

Oracle Corporation (NYSE:ORCL) is a Texas-based company that provides solutions for enterprise information technology environments. Incorporated in 1977, the company offers Oracle Cloud SaaS, Oracle Health applications, Oracle cloud license and on-premise license, and Oracle license support services.

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