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working day (NASDAQ: WDAY) and Salesforce (NYSE: CRM) led higher software-as-a-service stocks on Friday, a day after investment firm Credit Suisse noticed that the two companies could see an increase in spending over the next few years.
Analysts Sami Badri and George Engroff noted that back-office applications and front-office application software are likely to see an estimated increase in spending in 2026, compared to 2022 and 2021. Back-office spending will increase by 10.1% of IT budgets in 2026, up from 8.6% currently, while front-office and customer relations spending will increase to 9.3% in 2026, from 7.6% currently.
In a survey conducted by Credit Suisse, 18% of respondents said Salesforce (CRM) will see the largest increase in IT spending in 2022, compared to 2021, just behind Microsoft (MSFT), Amazon Web Services (AMZN) ) and ServiceNow (NOW).
In comparison, 3% of respondents said Workday (WDAY) will see the largest percentage increase in IT spending in 2022, compared to 2021.
Only 11% of respondents said Salesforce (CRM) would have the biggest cost reduction this year since last year, while 4% said Workday (WDAY) was their response.
Oracle (ORCL), IBM/Red Hat (IBM) and Cisco (CSCO) were the three companies that received the most response for the largest cost reduction.
Salesforce (CRM) and Workday (WDAY) both earned more than 6% on Friday.
Several other stocks of software-as-a-service also rose, including approximately 2% gains for Microsoft (MSFT), ServiceNow (NOW) and Adobe (ADBE). Oracle (ORCL) has also risen, gets over 3.5%.
Earlier this month, technical research shop Thrasher Analytics listed Workday (WDAY) among a group of stocks that are most important in hedging funds.