The tech sector has been buzzing with the rise of artificial intelligence since late 2022. AI has been a driving force behind market gains, particularly in generative and agentic AI.
However, not all tech companies have benefited equally. The software sector, especially SaaS, saw a slump post-COVID, coinciding with the AI boom. Software companies now face the challenge of pivoting towards an AI-first future to stay competitive.
BTIG analyst Nick Altmann sees potential in certain software stocks despite the sector’s struggles. With stable growth and improving margins, he believes these companies have the chance to rebound in 2026.
OneStream, a Michigan-based enterprise software firm, offers a unique finance platform powered by AI. With over 1,700 customers and operations in 45+ countries, the company aims to streamline financial processes and improve efficiency.
Despite a stock decline, OneStream reported strong financials in 3Q25, with revenue up 19% year-over-year. Altmann remains bullish on the stock, projecting a 37.5% one-year gain and a Buy rating.
GitLab, known for its open-source DevSecOps platform, integrates AI to enhance workflows. The company’s AI tools, available to paying subscribers, automate tasks and provide software assistants for developers.
GitLab’s revenue in 3Q26 was up 25% year-over-year, beating expectations. Altmann sees growth potential in the stock, with a Buy rating and a 37% upside based on a $52 price target.
monday.com’s cloud-based work management software leverages AI to automate tasks and improve productivity. The platform is popular among enterprise customers, with over 250,000 users and a strong presence in the Fortune 500.
Despite revenue outlook challenges, monday.com reported solid results in 3Q26, with a 26% revenue increase year-over-year. Analyst Allan Verkhovski sees growth potential in the stock, projecting a 44% upside with a Buy rating and a $210 price target.
Read more at Yahoo Finance: These 3 Beaten-Down Software Stocks Could Be Setting Up for a Rebound, Says BTIG