6. Donnelley Financial Solutions, Inc. (NYSE:DFIN)
Stock Upside: 59.6%
RSI: 25.11
Number of Hedge Fund Holders: 22
Donnelley Financial Solutions, Inc. (NYSE:DFIN) is one of the oversold software stocks to buy according to Wall Street analysts. On May 5, Donnelley Financial Solutions, Inc. (NYSE:DFIN) reported its first-quarter 2026 financial results, where it posted total revenue of $205.5 million, up 2.2% year over year. The revenue growth was powered mainly by the company’s software solutions segment, which brought in $91.7 million, an 8.4% year over year. Management said on the earnings call that this segment now accounts for 44.6% of total revenue, up from 42.1% a year earlier.
The company said that the standout performer within the software solutions segment was ActiveDisclosure. ActiveDisclosure is Donnelley’s financial reporting and compliance platform, which grew approximately 21% year over year.
The quarter’s adjusted EPS came in at $1.45, as compared to $1.24 in Q1 2025. According to David A. Gardella, the company’s Executive VP and CFO, the improvement was driven by the growing share of higher-margin software revenue and permanent reductions in the company’s cost structure. These two expanded the company’s adjusted EBITDA margin by 50 basis points year over year to 34.4%.
The Board of Directors found these results to be good enough to support a new $150 million share repurchase program. This program replaced the prior authorization that had $25.5 million remaining. During Q1, the company bought back approximately 595,000 shares for $28.3 million at an average price of $47.58 per share.
Donnelley Financial Solutions, Inc. (NYSE:DFIN) is a financial software and regulatory compliance company. It provides cloud-based and technology-enabled solutions for capital markets transactions, investment reporting, and regulatory filings. Its platform supports public and private companies, investment firms, and financial institutions with SEC filings, earnings reports, virtual data rooms, and compliance management tools.
While we acknowledge the potential of DFIN 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 DFIN and that has 100x upside potential, check out our report about the cheapest AI stock.
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