Top Software Stocks for 2026: Barclays' Picks

Key Analyst Recommendations

Barclays has identified Salesforce, Oracle, and DigitalOcean as its top US software stock picks for 2026, citing potential for significant growth driven by artificial intelligence and attractive valuations.

Market Context and Analysis

The selection balances established industry leaders with emerging players. Each company is positioned to capitalize on AI trends. Barclays highlights specific catalysts such as AI product revenue for Salesforce, remaining performance obligation RPO conversion for Oracle, and a pivot to the AI inference market for DigitalOcean.

Investment Outlook and Valuation

Barclays views the current valuations as compelling entry points. Salesforce trades at a reported 14x EV/FCF for calendar year 2027, while Oracle is at 22x CY27 PE. DigitalOcean is shifting its strategy to accelerate revenue growth, targeting the high-margin AI inference market.

Concluding View

Investors should monitor these companies' abilities to execute on their respective AI strategies and convert growth drivers into revenue. The analysis suggests a reevaluation of these stocks is warranted based on their long-term prospects.

FAQ

Q: Which companies did Barclays name as top software picks for 2026?
A: Barclays highlighted Salesforce CRM, Oracle ORCL, and DigitalOcean DOCN.

Q: What is the main driver for these stock picks?
A: The primary driver is their strategic positioning to capitalize on artificial intelligence trends and their attractive current valuations.

Source: Investing.com