For years, the playbook for enterprise software stocks was simple: cloud migration plus a steady “land and expand” SaaS model equaled predictable returns. But as we move into February 2026, the landscape has fundamentally shifted.
We are no longer just talking about “moving to the cloud.” We are witnessing a total rewiring of the enterprise—driven by Agentic AI, Inference Economics, and a massive pivot toward Platform Autonomy. If you’re looking to update your portfolio, here is the state of the market and the tickers leading the charge.
1. The Numbers: Spending is Growing, But Shifting
According to the latest Gartner data released this February, global IT spending is projected to hit $6.15 trillion in 2026—an 11% increase over last year. However, the type of spending has changed.
While software growth remains strong, investors are favoring companies that own the “AI Infrastructure” layer. The focus has moved from “assistive” AI (like basic chatbots) to “agentic” systems that can actually execute workflows without human intervention.
2. The Titans: Stability Meets AI Scale
The “Megacaps” continue to dominate because they have the cash to build the massive data centers required for the next generation of software.
• Microsoft (MSFT): Despite its size, Microsoft remains a top pick for 2026. Its Azure cloud business is reaping the rewards of OpenAI’s massive footprint, and the integration of AI across Microsoft 365 has provided a “broad tailwind” that smaller competitors struggle to match.
• Oracle (ORCL): Once considered a “legacy” play, Oracle is having a renaissance. Analysts at Barclays recently highlighted Oracle as a high-growth asset for 2026, citing its massive backlog of cloud contracts (RPO) that are finally converting to revenue.
• Salesforce (CRM): After a rocky 2025, Salesforce is betting the house on “Agentforce.” The goal is to move beyond seat-based pricing to “value-based” pricing, where companies pay for the work AI agents actually complete.
3. The Mid-Cap Breakouts: Vertical & Specialized AI
The “squeeze” is on for mid-market companies. Those that haven’t adapted to AI are being sidelined, but those with “proprietary data moats” are seeing explosive growth.
• Palantir (PLTR): A standout in early 2026, Palantir’s AIP (Artificial Intelligence Platform) is being treated as the “operating system” for modern enterprise AI. It currently holds a high growth rating due to its ability to turn raw data into actionable military and corporate strategy.
• Procore (PCOR): In the construction tech space, Procore is a favorite for its “vertical AI” focus. It solves specific, messy, real-world problems that general AI can’t touch.
• Zscaler (ZS) & CrowdStrike (CRWD): Cybersecurity remains the most “recession-proof” sub-sector of software. As AI makes cyberattacks more sophisticated, enterprise spending on “Preemptive Cybersecurity” is non-negotiable.
4. Trends to Watch: From “Copilots” to “Agents”
In 2024 and 2025, we were impressed when software could suggest an email. In 2026, the market is rewarding software that can do the job.
The “Agentic” Reality Check: Only about 11% of organizations have AI agents in full production right now, but that number is expected to triple by year-end. Investors are looking for companies that help bridge this “pilot-to-production” gap.
The Bottom Line for Investors
The “SaaS era” of the 2010s is officially over. We have entered the Engineering Era, where software is valued as a “workforce multiplier” rather than just a tool.
When evaluating your next software pick, ask: Does this company have the proprietary data to make their AI better than a generic model? If the answer is no, they might be at risk of being “disrupted” by the very technology they’re trying to sell.
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