In 2024, the global enterprise market size was estimated at $263.79 billion, according to Grand View Research. It’s expected to now grow at a CAGR of 12.1% from 2025 to 2030, due to the increasing demand for automated and integrated solutions. Enterprise software becomes more desirable as organizations seek reduced reliance on HR to eliminate manual errors and automate routine tasks. Therefore, ERP (enterprise resource planning), CRM (customer relationship management), and data analytics software are becoming increasingly popular.
Enterprise software is actively transforming with the integration of AI technologies, which changes how it’s designed, deployed, and utilized. According to Endava, GenAI is driving this transformation by incorporating creative and analytical capabilities into enterprise applications. This enables software to undergo intelligent tasks like generating reports, creating personalized training materials, and writing codes. AI not only automates manual jobs but also allows hyper-personalization of customer-facing enterprise software. This allows platforms like CRM and e-commerce to deliver targeted content and recommendations, which leads to higher customer satisfaction and improved sales. This is fueled by adaptive AI-enhanced enterprise software that learns from vast datasets to provide real-time and individualized interactions.
AI-driven automation is also becoming more popular in core business processes. ERP and workflow management systems are automating complex tasks and reducing manual intervention to improve overall efficiency. Enterprises are streamlining operations and making data-driven solutions through the integration of now-standard features like process mining, intelligent document processing, and predictive analytics. Agentic AI is further pushing enterprise software towards greater autonomy. These are AI systems that act like human agents and autonomously perceive, reason, and analyze data to achieve certain goals. As enterprise software continues to integrate advanced AI capabilities in its regular applications, the technology becomes more proactive and intelligent.
Given this context, we’re here with a list of the 12 best enterprise software stocks to buy now.
An enterprise customer presenting their machine learning algorithms, revealing successful strategies for success.
Our Methodology
We sifted through ETFs and financial media reports to compile a list of the top enterprise software stocks. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Enterprise Software Stocks to Buy Now
12. Asana Inc. (NYSE:ASAN)
Number of Hedge Fund Holders: 33
Asana Inc. (NYSE:ASAN) operates a global work management software platform for individuals, team leads, and executives. It uses a hybrid go-to-market approach that combines a product-led model, direct sales, and channel partners to serve customers in different industries. These include technology, retail, education, government, and healthcare among others.
The company’s enterprise segment is mainly defined by customers that spend $100,000 or more annually. This customer base expanded year-over-year by 20% in Q4 2024. This led to an overall revenue increase of 10%, which accounted for $188.3 million. Customers who spent $5,000 or more annually contributed 75% to this amount. A key driver of this growth was the company’s AI Studio. This is a no-code tool that allows customers to build smart workflows with the help of AI agents.
The majority of Asana Inc.’s (NYSE:ASAN) large enterprise clients are rapidly adopting AI Studio. This platform improves efficiency by reducing manual labor and processing time. A popular global media company was able to achieve a 60% reduction in manual labor, and a 69% reduction in processing time by using AI Studio.
11. Tyler Technologies Inc. (NYSE:TYL)
Number of Hedge Fund Holders: 44
Tyler Technologies Inc. (NYSE:TYL) offers integrated software and tech management solutions for the public sector. It operates in two segments: Enterprise Software and Platform Technologies. It offers transformative technology solutions such as cybersecurity, customized employee training, and data and insights.
The company is currently transitioning its enterprise software offerings to a cloud-first model, which prioritizes cloud-based services over traditional on-premises solutions. This will enhance scalability, innovation, and client satisfaction. In Q4 2024, the company’s new software contract value rose by 97% year-over-year due to cloud-based (SaaS) deals. SaaS revenue alone grew by 23%, which marked the 16th consecutive quarter of over 20% SaaS growth.
Tyler Technologies Inc. (NYSE:TYL) is actively shifting its on-premises clients to the cloud. 106 migrations happened in Q4 alone. This increased the total contract value by 58% year-over-year, with ARR then reaching about $32,000. The company expects these migrations to peak between 2027 and 2028, with almost 80% of clients shifting to the cloud. This positions the company for an organic recurring revenue CAGR of 10% to 12% between 2025 and 2030.
The company benefitted from its conversion to a SaaS provider, which led Conestoga Capital Advisors to state the following regarding Tyler Technologies Inc. (NYSE:TYL) in its Q3 2024 investor letter:
“A software services company, Tyler Technologies, Inc. (NYSE:TYL) reported quarterly results that beat expectations as their conversion to a software-as-a-service (SaaS) provider gathered momentum and boosted earnings. TYL provides software to municipalities and other public government agencies that are used across a wide range of applications. Originally purchased by Conestoga in our Small Cap Growth portfolios in 2008, we added TYL to the Mid Cap Growth portfolios in 2016. TYL was sold from the Small Cap Growth strategy as its market capitalization rose above $13 billion. Our Mid Cap Growth portfolios have continued to hold TYL, and the company’s market capitalization was near $25 billion at the end of the third quarter.”
10. Docusign Inc. (NASDAQ:DOCU)
Number of Hedge Fund Holders: 51
Docusign Inc. (NASDAQ:DOCU) provides electronic signature solutions globally. It offers an AI-powered Intelligent Agreement Management (IAM) platform, Contract Lifecycle Management (CLM), and Document Generation. It also offers Gen for Salesforce, which generates automated agreements within Salesforce.
The company focuses on its IAM platform for enterprise software growth. With IAM at its center, the company is transitioning into an AI-powered, end-to-end agreement platform that will transform how enterprises create, commit to, and manage their agreements. IAM represented over 20% of new direct customer deals in FQ4 2025, which was only the second quarter after its initial launch to small and mid-market customers. IAM customers have reduced their contracting cycles by ~75%.
The company has launched departmental-level IAM deployments for global enterprise customers. These customers use Agreement AI within IAM to streamline document review, extract insights, verify parties, and build integrated workflows. In FY26, Docusign Inc. (NASDAQ:DOCU) will focus on departmental-level IAM adoption from both direct sales and a strong partner channel. The company is projecting IAM to represent a low double-digit percentage of total subscription recurring revenue by the end of FY26.
9. HubSpot Inc. (NYSE:HUBS)
Number of Hedge Fund Holders: 73
HubSpot Inc. (NYSE:HUBS) provides a cloud-based CRM platform for businesses in the Americas, Europe, and the Asia Pacific. This platform includes a Marketing Hub, a Sales Hub, a Service Hub, a Content Hub, an Operations Hub, and a Commerce Hub. It also provides professional services to educate and train customers on how to utilize its CRM platform.
On March 19, Bernstein initiated the stock with a Market Perform rating and a $693 price target. This sentiment came from its position in AI-driven automation. The firm’s analysts anticipate a 17% CAGR for the company, which exceeds Wall Street forecasts. The company’s AI-first approach is transforming its enterprise software. Its Content Hub is an AI-driven hub that became the fastest-growing hub in 2024. Service Hub also grew with new enterprise portals up 100% sequentially in Q4 2024. Breeze Copilot, which is an AI assistant, reached over 75,000 weekly active users.
HubSpot Inc.’s (NYSE:HUBS) AI agent ecosystem includes platforms like Agent.AI that help aggregate structured and unstructured data for AI agents. The user base for Agent.AI increased by 10x from 50,000 to over 500,000 users in just 6 months. The company also offered user-friendly tools that enabled 5,000 customers to build their own AI agents. The acquisition of Frame.AI is also notable and enhances real-time data integration. The company is investing in AI and enterprise features to drive long-term growth.
8. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 74
Twilio Inc. (NYSE:TWLO) offers customer engagement platform solutions internationally. It operates through two segments: Twilio Communications and Twilio Segment. It provides application programming interfaces and software solutions for communications between customers and end users. It also offers software products to build direct and personalized relationships with end users.
The company’s core enterprise software and drove $1.121 billion in Q4 2024 revenue, which was a year-over-year improvement of 12%. This growth was fueled by expansion in trusted channels, international expansion, and cross-selling and upselling to existing customers. The company is also investing in AI to enhance this platform.
Twilio Inc. (NYSE:TWLO) is using AI for improved automation. In presales, data-driven lead identification shortened sales cycles, and 80% of the new inbound leads are now processed by AI. In post-sales, AI-driven help center assistance achieved a 75% ticket deflation rate. Over 9,000 AI companies used Twilio Inc.’s (NYSE:TWLO) services in 2024. On February 25, Tigress Financial analyst Ivan Feinseth increased the company’s price target to $170 from $135 and kept a Buy rating. This sentiment came from the company’s AI-driven customer growth and the advancements in its AI-driven platform.
7. Atlassian Corp. (NASDAQ:TEAM)
Number of Hedge Fund Holders: 75
Atlassian Corp. (NASDAQ:TEAM) designs, develops, and licenses various software products worldwide. Its product portfolio includes Jira, which includes a project management system. It offers Confluence, which is a connected workspace. It also has Loom, which is a video communication tool; and Trello, which captures and adds structure to fluid and fast-forming work.
On March 20, Stephens initiated coverage of the company with an Equal Weight rating and a $255 price target. This was due to the company’s broad TAM and database for team organization which is essential for AI optimization. The company’s enterprise software segment is focused on its cloud-based platform and AI-driven tools. In FQ2 2025, the company made over $5 billion in annual run-rate revenue while the subscription revenue grew by 30% year-over-year.
Atlassian Corp. (NASDAQ:TEAM) is serving enterprise customers through AI innovation. Over 1 million monthly active users utilize the Atlassian Intelligence features. This led to a 25x year-over-year increase in AI interactions. The company’s AI capabilities fuel the adoption of premium and enterprise editions due to improved automation and analytics. In FQ2, the sales of higher-value SKUs were up 40%. It secured a record number of deals in the quarter which exceeded $1 million in annual contract value.
Hardman Johnston Global Equity Strategy stated the following regarding Atlassian Corporation’s (NASDAQ:TEAM) performance in its Q4 2024 investor letter:
“The top individual contributors to relative performance during the quarter were Atlassian Corporation (NASDAQ:TEAM), Standard Chartered, and Howmet Aerospace. Shares of Atlassian recovered sharply in the fourth quarter, driven by strong outperformance in Cloud and Data Center revenue growth and operating margins exceeding guidance by 360 bps. Paid seat expansion and cloud migrations led the earnings beat at the collaborative software maker, as management indicated that the macroeconomic environment has remained stable sequentially. Atlassian demonstrated a strong pace of innovation in the quarter, rolling out three new Premium versions of existing products, including Guard, Product Discovery, and Compass, plus two new out-of-the-box AI agents in Autodev and Autoreview to enhance engineering workflow efficiency. Additionally, Atlassian appointed its new CRO, Brian Duffy, whose background in the cloud division at SAP serves as a potential catalyst to scaling Atlassian’s enterprise go-to-market sales approach.”
6. Crowdstrike Holdings Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 77
Crowdstrike Holdings Inc. (NASDAQ:CRWD) provides global cybersecurity solutions. Its platform provides cloud-delivered protection of endpoints, cloud workloads, identity, and data through a SaaS subscription-based model. It also offers AI-powered workflow automation and GenAI workload services.
The company’s enterprise software segment is centered on its AI-native Falcon platform which is an AI-native Security Operations Center (SOC). This platform has become a crucial component of enterprise cybersecurity strategies. The Falcon Flex subscription model is increasing adoption and driving large multi-year deals. In Q4 2024, Falcon Flex’s deal value improved by over $1 billion and accounted for $2.5 billion. The company’s GenAI security analyst Charlotte AI is also driving tangible AI outcomes by significantly reducing threat response times.
The company’s cloud security business was up 45% year-over-year and ended with an ARR of over $600 million. The identity protection business also grew to exceed $370 million in ending ARR. On March 25, J.P. Morgan analyst Brian Essex reiterated a Buy rating on the company due to this reaccelerated ARR from effective cost containment. Essex anticipates growth in the company’s Cloud and Identity segments due to the adoption of Falcon’s Flex platform. The company is projecting FY26 total revenue to grow by 20% to 22%.
Given the company’s strong position in cloud-native cybersecurity tools, Sands Capital Technology Innovators Fund is optimistic about its future and stated the following regarding CrowdStrike Holdings Inc. (NASDAQ:CRWD) in its Q4 2024 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is the market-share leading provider of cloud-native cybersecurity tools. The business was founded in 2011 as an endpoint detection response vendor and disrupted a group of incumbents, often owned by private equity or large conglomerates, that failed to innovate. It has since grown its cloud-native set of endpoint security solutions to include antivirus software, threat detection, and device management and patching tools. We view endpoint security as an attractive market, due to its mission-critical nature, large size, and accelerating growth, enabled by the emergence of modern cloud based solutions. Over our five-year horizon, we expect Crowdstrike to sustain above-average earnings growth as it seeks to displace legacy endpoint security vendors to gain share, expands its product offerings with existing customers, and gains traction in newer and emerging capabilities.”
5. Datadog Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 83
Datadog Inc. (NASDAQ:DDOG) operates a global observability and security platform for cloud applications. It offers diverse products, such as infrastructure and application performance monitoring, log management, digital experience monitoring, error tracking, and workflow automation among other services.
On March 17, DA Davidson analysts assigned a Buy rating and a $165 price target on the company. This was due to the company’s ongoing transition from AI hardware to AI software infrastructure. It focuses on its monitoring and analytics platform which integrates infrastructure monitoring, application performance monitoring (APM), log management, and cloud security for various enterprises. About 3,500 of the company’s customers adopted AI and ML integrations into their ML, AI, and LLM usage in Q4 2024.
The company’s existing customers are increasingly adopting multiple products. As of Q4, 83% of customers used 2+ products, 50% used $4+, and 26% used 6+ products. Larger enterprise customers have also grown with 45% of the Fortune 500 now using Datadog Inc. (NASDAQ:DDOG). This indicates a 42% rise in the customer base year-over-year. However, the median ARR for Fortune 500 customers is below $0.5 million, which showcases substantial growth potential in this direction.
Parnassus Growth Equity Fund stated the following regarding Datadog, Inc. (NASDAQ:DDOG) in its Q4 2024 investor letter:
“We also added several new positions, including two in Information Technology: Atlassian, a maker of innovative software that allows IT developers and other employees to seamlessly collaborate on complex projects, and Datadog, Inc. (NASDAQ:DDOG), a dominant cloud monitoring platform.
Datadog, a dominant cloud monitoring platform, should have outsized growth due to its category leadership, sticky product suite, best-in-class product innovation and highly regarded management team. We believe the market has misinterpreted cyclical headwinds, such as reductions in IT spending, as secular trends, and we see Datadog benefiting from growth in Cloud Infrastructure-as-a-Service.”
4. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 85
Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for various organizations globally. Its platform includes AI Data Cloud, which enables customers to consolidate data into a single source. It serves many industries, such as financial services, media and entertainment, retail, healthcare, and technology along with the public sector.
The company’s enterprise software segment is centered around its Data Cloud platform which enables customers to integrate and analyze data conveniently. It essentially facilitates data sharing and collaboration. In Q4 2024, the product revenue for this segment increased by 28% year-over-year. For the full fiscal year, it improved by 30%. The company is now focusing on expanding its Data Cloud capabilities. For instance, it released 400+ new product capabilities in 2024, which was 2x from 2023.
The company’s AI platform Cortex AI exemplifies this expansion. It allows customers to build data agents and use LLMs from providers like Anthropic, Meta, DeepSeek, and OpenAI. On February 20, BTIG analyst Gray Powell upgraded the stock to a Buy rating with a $220 price target due to its increasing AI workloads and expanding AI projects. Powell anticipates that the company will outperform because of its position in the cloud data analytics market, its growing GenAI product portfolio, and its partnerships with tech and AI companies.
Burke Wealth Management believes that Snowflake Inc. (NYSE:SNOW) is crucial for enterprises that are implementing AI solutions. It stated the following in its Q4 2024 investor letter:
“Snowflake Inc. (NYSE:SNOW): Chapter two of the Prodigal Son Returns features Snowflake. Snowflake’s return to the portfolio required some tangible progress on the product innovation front as well as an uptick in business momentum before I was ready to slaughter the proverbial fattened calf. To review, we sold our stake in Snowflake following its fourth quarter 2023 earnings release in which legendary CEO Frank Slootman announced his retirement and 2024 guidance came in significantly below expectations. While new CEO Sridhar Ramaswamy has an excellent reputation as an innovator in the technology sector, we needed to see some tangible signs of progress on that front as well as a stabilization in the core data analytics business before repurchasing the stock. That is what we got with the release of third quarter earnings. Consumption trends in the core business have stabilized and are improving while there are several exciting new product offerings around AI that have been added to the platform. We were early to Snowflake when we made our initial purchase in the summer of 2023. We subscribed to the belief that any companies seeking to implement AI solutions in their business will first need to make sure their data is both accessible and secure, which would drive tremendous demand for Snowflake’s platform. We still do. As we discussed in the agentic age portion of this letter, sometimes the path from installing the data center compute power necessary for generative AI and arrival of the applications necessary to unlock the productivity promises is not always straight. That said, while the path may be winding we remain confident in the ultimate destination. We think Snowflake is going to be a big player in helping enterprises get their data accessible and safely delivering AI solutions to that data, whether it be their own or from trusted partners, that will drive the productivity enhancing business insights that are the reasons for the hundreds of billions of dollars being invested in artificial intelligence.”
3. Workday Inc. (NASDAQ:WDAY)
Number of Hedge Fund Holders: 89
Workday Inc. (NASDAQ:WDAY) provides enterprise cloud applications through its direct sales organization. Its offerings include financial & human capital management applications, and supply chain & inventory solutions. It offers Workday Extend for customers and their developers to build custom applications; and Workday Illuminate to accelerate manual tasks, assist employees, and transform business processes.
The company serves more than 11,000 customers which include over 60% of the Fortune 500 and 30% of the Global 2000. The company’s primary revenue drivers are its Human Capital Management (HCM) and Financial Management applications, which now use AI for higher efficiency. More than 2,000 customers use both HCM and Financial Management. 30% of the company’s net new wins in Q4 2024 were full-suite deals. The demand for AI-driven solutions is generally increasing. 30% of the customer expansions now involve AI SKUs.
Workday Inc. (NASDAQ:WDAY) is launching role-based AI agents and also the Agent System of Record. The latter product is focused on managing AI agents alongside human workforces. On March 31, Jefferies lowered the company’s price target to $325 from $350 and kept a Buy rating. This came from the broader price target reductions across the US software sector because of the potential macroeconomic headwinds. Jefferies expects a volatile H1 for the company, followed by a relatively stronger H2.
Parnassus Core Equity Fund stated the following regarding Workday, Inc. (NASDAQ:WDAY) in its Q4 2024 investor letter:
“We also added several new positions, including two in Information Technology: Workday, Inc. (NASDAQ:WDAY), a category leader for enterprise cloud applications for finance and human resources. We believe Workday’s product stickiness and key initiatives such as its partnership with other service providers position the company well for incremental growth over the next few years.”
2. ServiceNow Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 110
ServiceNow Inc. (NYSE:NOW) provides cloud-based solutions for digital workflows globally. It operates the Now platform, which is an AI platform for digital transformation ML, robotic process automation, and analytics. It also provides asset management, integrated risk management, IT service management, and Operational Technology management. It offers HR, legal, and workplace service delivery products.
The company’s Now Platform is actively integrating AI which drives its adoption. The company is also seeing higher adoption of its AI-powered Pro Plus offerings. In Q4 2024, ServiceNow Inc.’s (NYSE:NOW) AI-related deals were up 150% sequentially. The company focuses on high-value clients and closed 170 deals in Q4 that exceeded $1 million in net new ACV. 19 of these deals were over $5 million and 3 were over $20 million. 2 additional customers also crossed $100 million in total ACV.
The company is developing AI agents to automate complex enterprise processes. These agents both deliver efficiency and drive customer value. For instance, one multinational customer observed a 45% reduction in live chat after it implemented ServiceNow Inc.’s (NYSE:NOW) Now Assist. On January 30, Baird analyst Rob Oliver reaffirmed a Buy rating on the company with a $1200 price target due to its focus on integrating GenAI products. The company prioritizes adoption over immediate revenue generation.
Sands Capital Select Growth Fund stated the following regarding ServiceNow Inc. (NYSE:NOW) in its Q4 2024 investor letter, following its strong growth and financials:
“ServiceNow, Inc. (NYSE:NOW) shares advanced following its third-quarter business results, which revealed impressive execution at scale across the company’s product suite.
The business exceeded both top- and bottom-line expectations, with subscription revenue growing 22 percent in constant currency and adjusted operating margins expanding to 31 percent. Momentum continues in its Pro+ generative artificial intelligence (AI) product, which we estimate is generating nearly $100 million—a roughly 200 percent increase relative to the prior quarter. Outside of AI, momentum was broad across products and customer segments.
Over our five-year horizon, we expect ServiceNow to sustain over 20 percent top-line growth with incremental upside from continued progress in its AI-enabled products. We view its durable growth fueled by a broad product suite, paired with AI-related upside, as favorable relative to peers that trade at comparable valuations with weaker platform opportunities.”
1. Salesforce Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 162
Salesforce Inc. (NYSE:CRM) offers CRM technology to connect global companies and customers. Its lead offerings include Agentforce, Data Cloud, Industries AI, Salesforce Starter, Slack, Tableau, and MuleSoft. It also provides a marketing platform, commerce services, and field service solutions that enable companies to connect service agents, dispatchers, and mobile employees through a centralized platform.
The company’s unified platform includes the Customer 360 platform, Data Cloud, and Agentforce AI product line. These together integrate CRM applications, data management, and AI-powered automation and drive most of the company’s growth. In only 90 days, the company acquired 3,000 paying customers for Agentforce. It integrates AI agents into core applications and automates customer service inquiries, sales processes, and other workflows.
Data Cloud is the foundation for Agentforce and provides the necessary data for AI-powered automation. It surpassed 50 trillion records and doubled year-over-year. Fueled by this platform, the company’s FQ4 2025 revenue rose by 8% year-over-year. Data Cloud and AI ARR grew by 120%. Salesforce Inc. (NYSE:CRM) now projects FY26 revenue to improve by 7% to 8% growth. On March 26, Kirk Materne from Evercore ISI maintained a Buy rating on Salesforce Inc. (NYSE:CRM) with a $420 price target.
Parnassus Growth Equity Fund stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q4 2024 investor letter:
“Salesforce, Inc. (NYSE:CRM) reported third-quarter results that exceeded analysts’ expectations, as the integration of AI technology across the customer relationship management software company’s product offerings has driven robust growth in new deals.”
While we acknowledge the growth potential of Salesforce Inc. (NYSE:CRM), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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