10 Best SaaS Stocks to Invest In

3) Workday, Inc. (NASDAQ:WDAY)

 Number of Hedge Fund Holders: 84

Workday, Inc. (NASDAQ:WDAY) is a leading player in the SaaS industry as it offers cloud-based enterprise software for HR, financial management, and planning. Deutsche Bank analysts renewed confidence in the company’s stock as they upgraded it from “Hold” to a “Buy” rating, increasing the price target to $300 from $265. This upgrade demonstrates confidence in Workday, Inc. (NASDAQ:WDAY)’s solid fundamentals and potential for sustained revenue growth. In Q3 2025, the company’s total revenues came in at $2.160 billion, reflecting 15.8% growth YoY, with its subscription revenues coming at $1.959 billion, a 15.8% growth from the same period last year.

The company’s performance in Q3 2025 stemmed from the global momentum around its AI-driven innovations and the strength of its partner ecosystem. Deutsche Bank outlined 3 key drivers for Workday, Inc. (NASDAQ:WDAY)’s mid-teens revenue growth expectation over the coming years. These include a strong back-to-base motion that can leverage organic and inorganic innovation, improvements associated with go-to-market productivity, and elevated traction in Financial Management Solutions and Human Capital Management in the Middle and Emerging Enterprise segment.

The broader growth in the SaaS industry focuses on integrating platforms that unify workflows. Workday, Inc. (NASDAQ:WDAY)’s unified HCM, finance, and planning solutions focus on meeting a demand for end-to-end systems that reduce complexity and improve efficiency. With SaaS adoption expanding beyond large enterprises and into mid-sized businesses, the company is well-placed to cater to this broader market. Polen Capital, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:

“We added to several existing positions in the quarter including Adobe, Workday, Inc. (NASDAQ:WDAY), Shopify, MSCI, and Paycom Software. Workday is still growing revenue at a mid-to-high-teens rate, but in recent years, slower macroeconomic growth has made closing deals more challenging. Amidst a pullback, we increased our position as we found the valuation attractive for a well-positioned, recurring revenue business with still strong growth potential. The company also recently stated publicly that it will be focused on expanding profit margins meaningfully over the next five years—something we have expected and are pleased to see.”