By the StockSemáforo model · Updated July 18, 2026

Best software and SaaS stocks

Subscription software (SaaS) is arguably the best business model there is: gross margins of 70-90%, revenue that renews itself every year, and a near-zero marginal cost to serve one more customer. The catch is the bottom line: many spend so much on sales and R&D to grow that accounting profit takes years to show up — so look at cash generation before earnings here, and don't confuse «losing money» with «not making money».

This ranking sorts by fundamental quality, not by whether a stock is cheap or expensive: an excellent company can be expensive. To find the fair price, enter its quote in the analyzer. The scores recompute on their own with each new SEC filing.

95

quality /100

Margin 64.3%ROE 167.7%Growth 31.8%Debt/EBITDA 0.15x

AppLovin is a mobile-app advertising platform: its AI engine decides which ad to show each user to maximize installs and purchases, mostly in games.

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94

quality /100

Margin 43.7%ROE 27%Growth 34.8%FCF 51.5%Debt/EBITDA -1.14x

Palantir sells software platforms that help governments and large companies analyze huge amounts of data to make decisions.

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3

PTC

PTC

94

quality /100

Margin 41.6%ROE 32.3%Growth 14%FCF 31%Debt/EBITDA 0.6x

PTC sells the software engineers use to design physical products: CAD for modeling parts and PLM for managing the whole product lifecycle, from blueprint to factory.

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92

quality /100

Margin 39.3%ROE 30.2%Growth 14.9%FCF 22.9%Debt/EBITDA 0.05x

Microsoft is one of the world's largest tech companies.

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5

Intuit

INTU

91

quality /100

Margin 21.9%ROE 22.2%Growth 19.1%FCF 37.1%Debt/EBITDA 0.25x

Intuit makes financial software for individuals and small businesses.

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89

quality /100

Margin 12.6%ROE 15%Growth 24%FCF 33.2%Debt/EBITDA -0.45x

ServiceNow sells cloud software that helps large enterprises automate their internal workflows — from IT support to human resources and customer service.

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89

quality /100

Margin 9.6%ROE 17.3%Growth 16.8%FCF 34.1%Debt/EBITDA -1.17x

DocuSign is the standard for e-signatures: contracts, mortgages and agreements that once required paper and couriers get signed in minutes from any device.

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8

Adobe

ADBE

84

quality /100

Margin 28.7%ROE 62.8%Growth 13%FCF 40.8%Debt/EBITDA 0.18x

Adobe is the leader in content-creation software: Photoshop, Illustrator, Acrobat (PDF) and design and marketing tools.

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9

Okta

OKTA

84

quality /100

Margin 8.2%ROE 3.6%Growth 27.6%FCF 30.4%Debt/EBITDA -4.26x

Okta manages companies' digital identities: who each employee or customer is and what they can access.

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10

82

quality /100

Margin 3.7%ROE 3.4%Growth 41.1%FCF 28.9%Debt/EBITDA -13.85x

Datadog is the platform companies use to watch their cloud systems: it monitors servers, applications, logs and security in a single pane.

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Best stocks by sector

Technology · Financial · Healthcare · Industrial · Consumer · Energy · Materials · Utilities · Artificial intelligence · Cybersecurity · Semiconductors · Defense · Banks · Insurance · Real estate

How is the score computed? Read how the traffic light works or explore all company analyses.

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