The Top Software Stocks to Watch According to Mizuho

Investing.com -- The software sector continues to show strong growth potential, with several companies standing out in Mizuho’s latest analyst rankings.

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These top performers are leveraging artificial intelligence, cloud migration, and data modernization to drive future growth.

Here’s a closer look at the six software companies that earned "Outperform" ratings from Mizuho analysts.

1. Atlassian (TEAM) - With a price target of $245, Mizuho analyst Gregg Moskowitz believes Atlassian’s two-pronged approach of next-generation technology (AI and analytics) and improved cloud-exclusive products will accelerate Data Center to Cloud migrations over the next 2-3 years. The recent Data Center sunsetting announcement is expected to further drive cloud migration.

Moskowitz also notes that Atlassian maintains pricing power in both cloud and on-premise environments, and suggests the market underestimates how difficult it would be for AI to disintermediate Atlassian’s offerings.

Atlassian recently completed its acquisition of engineering intelligence firm DX and announced that its cloud applications are now available on the AWS Marketplace to accelerate cloud migrations. Bernstein also raised its price target on the company to $304.

2. Salesforce (CRM) - Assigned a $340 price target, Salesforce is systematically addressing barriers to broader Agentforce adoption, according to Moskowitz. The company’s position as the system of record for front-office operations provides a foundation to centralize data via Data 360.

Mizuho expects CY26 to be significantly better than CY25 for Salesforce, with potential for organic re-acceleration. The current valuation of less than 14x CY27E FCF is described as "very compelling."

Salesforce was selected by global medicines company Novartis to unify customer interactions on its Agentforce platform. The U.S. Department of Transportation is also expanding its partnership with Salesforce to modernize its operations using the company’s AI agent technology.

3. Snowflake (SNOW) - With a $285 price target, Moskowitz highlights Snowflake’s healthy consumption activity and enterprise trends toward data estate modernization.

The company is seeing success in emerging growth areas, with improved GTM investment and sales productivity.

Currently generating $100 million in AI ARR (expected to grow substantially), Snowflake is positioned as a "best-in-class way to play data modernization."

In its third-quarter results, Snowflake reported better-than-expected revenue and profitability, leading the company to raise its full-year revenue guidance. Following the report, DA Davidson reiterated its Buy rating and maintained its $300 price target.

4. Intuit (INTU) - Analyst Siti Panigrahi set an $875 price target for Intuit, describing it as "one of the highest-quality long-term growth stories in Software."

The company combines category leadership in QuickBooks and TurboTax with consistent margin expansion. QBO Advanced and IES are growing approximately 40% year-over-year, supporting multi-year expansion opportunities. FY25 was a breakout year for TurboTax, particularly in assisted offerings.

For its fiscal first quarter, Intuit reported total revenue of $3.9 billion, an 18% year-over-year increase that exceeded the high end of its guidance. The company also announced a strategic partnership with Circle to leverage stablecoin technology across its platforms.

5. Oracle (ORCL) - With a $400 price target, Panigrahi notes that 2025 was transformative as Oracle evolved into a key AI infrastructure player. Oracle’s end-to-end stack positions it as a long-term AI beneficiary.

While investor concerns about OpenAI concentration and data center financing exist, Panigrahi believes they’re overstated, as AI capacity remains supply-constrained and Oracle’s buildout works across customers. At current levels, Oracle’s core business (excluding AI) supports a $250+ valuation.

In a recent development, Michigan regulators approved a plan for DTE Energy to supply power for a major data center being developed by Oracle and OpenAI. Mizuho also reiterated its Outperform rating and $400 price target on Oracle following the company’s fiscal second-quarter results.

6. Autodesk (ADSK) - Assigned a $375 price target, Panigrahi believes Autodesk is positioned for sustainable growth re-acceleration into low teens and margin expansion following its transaction-model roll-out. More direct sales should drive growth through cross-selling and cost efficiencies.

Construction spending is improving, with potential rate cuts providing additional tailwind. Autodesk’s mission-critical position in AEC/manufacturing supports durability, while its connected cloud platform enables GenAI-driven design monetization.

Autodesk delivered strong fiscal third-quarter results that exceeded consensus expectations, prompting management to raise all fiscal year 2026 targets. Following the report, Baird raised its price target to $377, and UBS increased its target to $400.

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