NASDAQ cloud computing stocks: SaaS investments from India
Cloud computing stocks on the NASDAQ sit at an unusual crossroads in early 2026. Strong earnings reports and rapid AI adoption have not stopped a broad sell-off across the SaaS sector. Salesforce, ServiceNow, Snowflake, and Adobe each trade 36–47% below their 52-week highs. Nearly $1 trillion in market value has evaporated from software stocks since mid-2025. Yet analysts see 50–75% upside from current prices. For Indian investors seeking global technology exposure, this gap between price and performance creates a compelling entry window.
The global cloud market crossed $900 billion in 2025 and is set to surpass $1 trillion in 2026. Gartner projects public cloud spending will grow by over 21% this year. Meanwhile, SaaS remains the largest cloud segment, accounting for roughly $370–430 billion. These numbers tell a clear story — enterprises keep moving workloads to the cloud, and AI is only accelerating that shift. Every primary SaaS provider now embeds generative AI features into its core platform. The companies that lead this integration stand to capture outsized market share over the next decade.
Let us break down the four leading NASDAQ-listed cloud computing stocks that India-focused investors should closely study.
Salesforce: the CRM giant betting big on AI agents
Salesforce reported Q3 FY2026 revenue of $10.26 billion, an 8.6% increase year over year. Non-GAAP earnings per share of $3.25 beat Wall Street estimates by nearly 14%. The company now generates over $2.2 billion in quarterly free cash flow, a 22% jump from the prior year.
The real catalyst is Agentforce, the company's autonomous AI agent platform. Combined with Data 360, Agentforce has reached $1.4 billion in annual recurring revenue. That figure represents 114% year-over-year growth, with more than 18,500 deals closed since launch. Salesforce also completed its $8 billion acquisition of Informatica in November 2025 to strengthen its data integration capabilities.
In January 2026, Salesforce secured a $5.6 billion, ten-year contract with the U.S. Army. Full-year FY2026 guidance calls for $41.45–41.55 billion in revenue. Management has set a long-term target of $60 billion by FY2030.
At a forward price-to-earnings ratio near 15–20x and a PEG ratio of 0.89, Salesforce trades below its earnings growth rate. The average analyst price target of roughly $325 implies over 60% upside from current levels around $199. Among SaaS companies' investment options, Salesforce offers the most mature combination of scale, profitability, and AI momentum.
ServiceNow: enterprise automation leader with record growth
ServiceNow delivered Q4 2025 results on January 28, 2026, reporting revenue of $3.57 billion. That marks a 20.5% year-over-year increase. Subscription revenue grew 21% to $3.47 billion. Current remaining performance obligations surged 25% to $12.85 billion, signalling strong forward demand.
CEO Bill McDermott called it the largest quarter in the company's history for CRM net-new annual contract value. Now Assist Pro Plus, the company's generative AI product, has crossed a $600 million run rate. It stands as the fastest-growing product ServiceNow has ever launched.
The Salesforce ServiceNow analysis reveals a key difference in growth profiles. ServiceNow grows revenue at roughly double the pace of Salesforce. However, it trades at a higher valuation—around 26–37x forward earnings, compared with Salesforce's 15–20x. ServiceNow also made a strategic pivot toward acquisitions in 2025. It committed over $12 billion to deals, including the $7.75 billion acquisition of Armis
ServiceNow recently partnered with both Anthropic and OpenAI to embed frontier AI models directly into its platform. A 5:1 stock split completed in December 2025 improved share accessibility. Despite posting record results, the stock fell 11% after earnings as the broader market punished growth valuations.
The average analyst target near $195 suggests roughly 75% upside from the current price of $111. ServiceNow's combination of 20%+ growth, expanding AI products, and deep enterprise relationships makes it a standout name among cloud computing stocks NASDAQ investors track most closely.
Snowflake: the high-growth data cloud with massive AI partnerships
Snowflake remains the fastest-growing company in this group. Q3 FY2026 revenue reached $1.21 billion, up 29% year over year. Product revenue grew at a similar pace, driven by rising data consumption across enterprise customers. Remaining performance obligations jumped 37% to $7.88 billion, and net revenue retention held steady at 125%.
The Snowflake investment thesis now centres heavily on AI. In February 2026, Snowflake struck a $200 million partnership with OpenAI. A similar $200 million deal with Anthropic closed in December 2025. Over 1,200 customers have adopted agentic AI features, and AI accounted for half of Q3 bookings. New products include Cortex Code for AI-assisted development and Snowflake Intelligence for natural language data queries.
Snowflake remains GAAP unprofitable, posting a quarterly net loss of $292 million. However, operating cash flow grew 45% to $441 million. The company's price-to-sales ratio is near 13x, reflecting significant compression from its IPO-era peak above 100x.
The question of whether Snowflake is overvalued depends on your time horizon. At roughly $160 per share with an analyst consensus near $275, the market prices in considerable growth deceleration. If AI-driven data consumption continues expanding, Snowflake's consumption-based model stands to benefit disproportionately. Q4 results expected on February 25 will provide the next central data point.
Adobe: the most profitable cloud stock at decade-low valuations
Adobe posted record Q4 FY2025 revenue of $6.19 billion, a 10% increase year over year. Full-year revenue hit $23.77 billion with operating cash flow exceeding $10 billion. Non-GAAP earnings per share reached $5.50 for the quarter.
Adobe's cloud growth story centres on Firefly, its generative AI platform. Over 35% of Photoshop subscribers now actively use AI features. Generative Fill ranks among the top five most-used Photoshop tools. Adobe MAX 2025 introduced Firefly Image Model 5, AI video editing, and AI-powered soundtrack generation. A partnership with Runway in December 2025 further expanded video AI capabilities. Adobe also announced a $1.9 billion acquisition of Semrush to add SEO and marketing analytics to its platform.
Adobe trades at a forward P/E of approximately 12–15x. That is less than half its five-year average valuation of 35–41x. For a company with 89% gross margins and $10 billion in annual cash flow, this represents a historically rare discount. Adobe's subscription model generates predictable recurring revenue, making it a favourite among long-term investors. The average analyst target near $415 implies roughly 50% upside from current prices around $275.
Cloud market size and competitive landscape
The global cloud computing market reached approximately $913–943 billion in 2025. Gartner forecasts that public cloud spending alone will reach $723 billion in 2025, up 21.5%. By 2026, cloud spending will exceed 45% of all enterprise IT budgets, up from under 17% in 2021.
In the infrastructure layer, AWS holds 29% market share, followed by Microsoft Azure at 20% and Google Cloud at 13%. These three providers collectively control 63% of the market. Oracle has emerged as a notable challenger, with OCI growing 52% year over year.
The SaaS segment drives roughly 53–55% of total cloud revenue. CRM applications command the largest sub-segment, with a 24% market share. The SaaS market is projected to grow at a 17–18% compound annual growth rate through 2030. How big is the SaaS market today? Industry estimates range from $370 billion to $430 billion, depending on the definition used.
AI remains the dominant growth catalyst. Generative AI cloud services grew 140–180% in 2025. GPU-as-a-Service revenues surged over 200%. Microsoft, Amazon, and Alphabet each signalled $80–100 billion in AI infrastructure capital expenditure. Gartner expects 95% of new digital workloads to deploy on cloud-native platforms by 2026.
M&A activity hit record levels in 2025 with 2,698 SaaS transactions, the highest ever recorded. A complete 72% of those deals referenced AI capabilities. Landmark transactions included Google's $32 billion acquisition of Wiz and Salesforce's $8 billion acquisition of Informatica. This consolidation trend suggests larger players are building broader platforms to lock in enterprise customers across multiple workflows.
The investment thesis for Indian investors
Indian residents can invest directly in NASDAQ-listed cloud stocks through the RBI Liberalised Remittance Scheme. The LRS permits up to $250,000 per person per financial year. Platforms such as Winvesta, Vested Finance, INDmoney, and Groww offer access to U.S. markets through fractional share capabilities. Fractional shares allow you to buy a portion of expensive stocks like ServiceNow or Adobe without committing thousands of dollars upfront. Most platforms also provide SIPC coverage up to $500,000 for added security.
The tax framework involves several layers. Long-term capital gains on holdings over 24 months attract a flat 12.5% tax with no indexation benefit. Short-term gains fall under your regular income tax slab rate. The India-U.S. Double Taxation Avoidance Agreement ensures that no U.S. capital gains tax applies to Indian residents. Dividends are subject to a 25% U.S. withholding tax, reduced to 30% with a completed Form W-8BEN.
Tax collected at source on foreign remittances stands at 20% on amounts exceeding ₹10 lakh. This TCS is fully refundable when you file your income tax return. At approximately ₹86 per dollar, the ₹10 lakh threshold translates to roughly $11,600.
The broader investment thesis rests on three pillars. First, valuations across the sector sit at multi-year lows despite strong operational performance. Second, AI adoption is expanding these companies' addressable markets rather than shrinking them. Third, a weakening rupee amplifies dollar-denominated returns for Indian investors.
Analysts overwhelmingly see significant upside. Average price targets imply 50–75% gains across all four stocks covered here. The risk is real — if AI truly commoditises enterprise workflows, these businesses face structural headwinds. But at current prices, much of that downside scenario appears already reflected in valuations.
These four NASDAQ cloud computing stocks India investors can access today represent different risk-return profiles. Salesforce and Adobe offer profitability and value at discounted prices. ServiceNow delivers premium growth at a higher valuation. Snowflake provides the highest upside potential but also the greatest uncertainty. Together, they cover the full spectrum of what drives cloud computing growth in 2026 and beyond. Building a diversified position across two or three of these names can balance risk while capturing the sector's long-term tailwinds.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Table of Contents
Cloud computing stocks on the NASDAQ sit at an unusual crossroads in early 2026. Strong earnings reports and rapid AI adoption have not stopped a broad sell-off across the SaaS sector. Salesforce, ServiceNow, Snowflake, and Adobe each trade 36–47% below their 52-week highs. Nearly $1 trillion in market value has evaporated from software stocks since mid-2025. Yet analysts see 50–75% upside from current prices. For Indian investors seeking global technology exposure, this gap between price and performance creates a compelling entry window.
The global cloud market crossed $900 billion in 2025 and is set to surpass $1 trillion in 2026. Gartner projects public cloud spending will grow by over 21% this year. Meanwhile, SaaS remains the largest cloud segment, accounting for roughly $370–430 billion. These numbers tell a clear story — enterprises keep moving workloads to the cloud, and AI is only accelerating that shift. Every primary SaaS provider now embeds generative AI features into its core platform. The companies that lead this integration stand to capture outsized market share over the next decade.
Let us break down the four leading NASDAQ-listed cloud computing stocks that India-focused investors should closely study.
Salesforce: the CRM giant betting big on AI agents
Salesforce reported Q3 FY2026 revenue of $10.26 billion, an 8.6% increase year over year. Non-GAAP earnings per share of $3.25 beat Wall Street estimates by nearly 14%. The company now generates over $2.2 billion in quarterly free cash flow, a 22% jump from the prior year.
The real catalyst is Agentforce, the company's autonomous AI agent platform. Combined with Data 360, Agentforce has reached $1.4 billion in annual recurring revenue. That figure represents 114% year-over-year growth, with more than 18,500 deals closed since launch. Salesforce also completed its $8 billion acquisition of Informatica in November 2025 to strengthen its data integration capabilities.
In January 2026, Salesforce secured a $5.6 billion, ten-year contract with the U.S. Army. Full-year FY2026 guidance calls for $41.45–41.55 billion in revenue. Management has set a long-term target of $60 billion by FY2030.
At a forward price-to-earnings ratio near 15–20x and a PEG ratio of 0.89, Salesforce trades below its earnings growth rate. The average analyst price target of roughly $325 implies over 60% upside from current levels around $199. Among SaaS companies' investment options, Salesforce offers the most mature combination of scale, profitability, and AI momentum.
ServiceNow: enterprise automation leader with record growth
ServiceNow delivered Q4 2025 results on January 28, 2026, reporting revenue of $3.57 billion. That marks a 20.5% year-over-year increase. Subscription revenue grew 21% to $3.47 billion. Current remaining performance obligations surged 25% to $12.85 billion, signalling strong forward demand.
CEO Bill McDermott called it the largest quarter in the company's history for CRM net-new annual contract value. Now Assist Pro Plus, the company's generative AI product, has crossed a $600 million run rate. It stands as the fastest-growing product ServiceNow has ever launched.
The Salesforce ServiceNow analysis reveals a key difference in growth profiles. ServiceNow grows revenue at roughly double the pace of Salesforce. However, it trades at a higher valuation—around 26–37x forward earnings, compared with Salesforce's 15–20x. ServiceNow also made a strategic pivot toward acquisitions in 2025. It committed over $12 billion to deals, including the $7.75 billion acquisition of Armis
ServiceNow recently partnered with both Anthropic and OpenAI to embed frontier AI models directly into its platform. A 5:1 stock split completed in December 2025 improved share accessibility. Despite posting record results, the stock fell 11% after earnings as the broader market punished growth valuations.
The average analyst target near $195 suggests roughly 75% upside from the current price of $111. ServiceNow's combination of 20%+ growth, expanding AI products, and deep enterprise relationships makes it a standout name among cloud computing stocks NASDAQ investors track most closely.
Snowflake: the high-growth data cloud with massive AI partnerships
Snowflake remains the fastest-growing company in this group. Q3 FY2026 revenue reached $1.21 billion, up 29% year over year. Product revenue grew at a similar pace, driven by rising data consumption across enterprise customers. Remaining performance obligations jumped 37% to $7.88 billion, and net revenue retention held steady at 125%.
The Snowflake investment thesis now centres heavily on AI. In February 2026, Snowflake struck a $200 million partnership with OpenAI. A similar $200 million deal with Anthropic closed in December 2025. Over 1,200 customers have adopted agentic AI features, and AI accounted for half of Q3 bookings. New products include Cortex Code for AI-assisted development and Snowflake Intelligence for natural language data queries.
Snowflake remains GAAP unprofitable, posting a quarterly net loss of $292 million. However, operating cash flow grew 45% to $441 million. The company's price-to-sales ratio is near 13x, reflecting significant compression from its IPO-era peak above 100x.
The question of whether Snowflake is overvalued depends on your time horizon. At roughly $160 per share with an analyst consensus near $275, the market prices in considerable growth deceleration. If AI-driven data consumption continues expanding, Snowflake's consumption-based model stands to benefit disproportionately. Q4 results expected on February 25 will provide the next central data point.
Adobe: the most profitable cloud stock at decade-low valuations
Adobe posted record Q4 FY2025 revenue of $6.19 billion, a 10% increase year over year. Full-year revenue hit $23.77 billion with operating cash flow exceeding $10 billion. Non-GAAP earnings per share reached $5.50 for the quarter.
Adobe's cloud growth story centres on Firefly, its generative AI platform. Over 35% of Photoshop subscribers now actively use AI features. Generative Fill ranks among the top five most-used Photoshop tools. Adobe MAX 2025 introduced Firefly Image Model 5, AI video editing, and AI-powered soundtrack generation. A partnership with Runway in December 2025 further expanded video AI capabilities. Adobe also announced a $1.9 billion acquisition of Semrush to add SEO and marketing analytics to its platform.
Adobe trades at a forward P/E of approximately 12–15x. That is less than half its five-year average valuation of 35–41x. For a company with 89% gross margins and $10 billion in annual cash flow, this represents a historically rare discount. Adobe's subscription model generates predictable recurring revenue, making it a favourite among long-term investors. The average analyst target near $415 implies roughly 50% upside from current prices around $275.
Cloud market size and competitive landscape
The global cloud computing market reached approximately $913–943 billion in 2025. Gartner forecasts that public cloud spending alone will reach $723 billion in 2025, up 21.5%. By 2026, cloud spending will exceed 45% of all enterprise IT budgets, up from under 17% in 2021.
In the infrastructure layer, AWS holds 29% market share, followed by Microsoft Azure at 20% and Google Cloud at 13%. These three providers collectively control 63% of the market. Oracle has emerged as a notable challenger, with OCI growing 52% year over year.
The SaaS segment drives roughly 53–55% of total cloud revenue. CRM applications command the largest sub-segment, with a 24% market share. The SaaS market is projected to grow at a 17–18% compound annual growth rate through 2030. How big is the SaaS market today? Industry estimates range from $370 billion to $430 billion, depending on the definition used.
AI remains the dominant growth catalyst. Generative AI cloud services grew 140–180% in 2025. GPU-as-a-Service revenues surged over 200%. Microsoft, Amazon, and Alphabet each signalled $80–100 billion in AI infrastructure capital expenditure. Gartner expects 95% of new digital workloads to deploy on cloud-native platforms by 2026.
M&A activity hit record levels in 2025 with 2,698 SaaS transactions, the highest ever recorded. A complete 72% of those deals referenced AI capabilities. Landmark transactions included Google's $32 billion acquisition of Wiz and Salesforce's $8 billion acquisition of Informatica. This consolidation trend suggests larger players are building broader platforms to lock in enterprise customers across multiple workflows.
The investment thesis for Indian investors
Indian residents can invest directly in NASDAQ-listed cloud stocks through the RBI Liberalised Remittance Scheme. The LRS permits up to $250,000 per person per financial year. Platforms such as Winvesta, Vested Finance, INDmoney, and Groww offer access to U.S. markets through fractional share capabilities. Fractional shares allow you to buy a portion of expensive stocks like ServiceNow or Adobe without committing thousands of dollars upfront. Most platforms also provide SIPC coverage up to $500,000 for added security.
The tax framework involves several layers. Long-term capital gains on holdings over 24 months attract a flat 12.5% tax with no indexation benefit. Short-term gains fall under your regular income tax slab rate. The India-U.S. Double Taxation Avoidance Agreement ensures that no U.S. capital gains tax applies to Indian residents. Dividends are subject to a 25% U.S. withholding tax, reduced to 30% with a completed Form W-8BEN.
Tax collected at source on foreign remittances stands at 20% on amounts exceeding ₹10 lakh. This TCS is fully refundable when you file your income tax return. At approximately ₹86 per dollar, the ₹10 lakh threshold translates to roughly $11,600.
The broader investment thesis rests on three pillars. First, valuations across the sector sit at multi-year lows despite strong operational performance. Second, AI adoption is expanding these companies' addressable markets rather than shrinking them. Third, a weakening rupee amplifies dollar-denominated returns for Indian investors.
Analysts overwhelmingly see significant upside. Average price targets imply 50–75% gains across all four stocks covered here. The risk is real — if AI truly commoditises enterprise workflows, these businesses face structural headwinds. But at current prices, much of that downside scenario appears already reflected in valuations.
These four NASDAQ cloud computing stocks India investors can access today represent different risk-return profiles. Salesforce and Adobe offer profitability and value at discounted prices. ServiceNow delivers premium growth at a higher valuation. Snowflake provides the highest upside potential but also the greatest uncertainty. Together, they cover the full spectrum of what drives cloud computing growth in 2026 and beyond. Building a diversified position across two or three of these names can balance risk while capturing the sector's long-term tailwinds.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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