"Party in the Software Marketplace": Evercore named seven favorites among software developers
Windows operating system developer and Azure cloud service owner Microsoft, agent AI developer Salesforce, and Oracle, which specializes in serving hyperscalers, were among the favorites for 2026 among stocks of enterprise software creators according to investment firm Evercore, Seeking Alpha reports. In addition, Intuit, which makes financial software for small businesses, as well as cloud processing and storage platform Snowflake and Samsara, which offers software for the Internet of Things, made the list.
"While we believe the software market party will broaden in 2026 (investor interest will spread to a wider range of developers - Oninvest), we do not expect interest in infrastructure solutions to wane," Evercore said in a research note. - In this context, Microsoft, Snowflake and Oracle remain the three key investment ideas for next year".
According to Evercore, there is a "more specific discussion" surrounding Oracle than other IT companies, including concerns about its debt load and ties to OpenAI. Nevertheless, strong fundamentals and demand from cloud providers should continue to drive AI adoption in the enterprise sector, analysts said.
Salesforce, in their view, "closes the largest number of inquiries from players looking for undervalued stories in the software market. Meanwhile, the company's AI initiatives are gaining traction and there is potential for revenue acceleration. In addition, the low free cash flow multiple indicates a significantly more attractive risk/return ratio, the analysts emphasize.
Intuit is well positioned for growth through AI adoption among small businesses, according to Evercore, while Samsara was named one of the best ideas for 2026 among small and mid-cap players by analysts at the investment firm.
Evercore's top pick for cybersecurity software remains Palo Alto Networks. Analysts expect the market narrative for the company's stock to "change significantly" as synergies from recent deals with CyberArk and Chronosphere are realized.
This article was AI-translated and verified by a human editor
