TOP GROWTH STOCKS
FOR 2026

Growth stocks are typically companies that increase their revenue and earnings at a faster rate than the average business in their sector. While these stocks can offer higher potential returns, they often come with increased volatility.

The following selection highlights companies across technology, finance, and healthcare that eToro analysts believe are well-positioned to leverage secular growth trends in the coming year.

Meta Platforms (META)

Past performance is not an indication of future results.

Meta Platforms enters 2026 as a leader in AI-driven advertising, having leveraged its Llama large language models to increase ad conversion rates by over 20% for many retail partners.

• The company’s Family of Apps serves over 3.3bn daily active users, providing a massive data advantage that fuels its high-margin digital advertising engine.
• Meta’s capital expenditure for 2026 is projected to be expanded up to $100bn, $30bn higher than previous forecasts, focusing on the “compute power” necessary to dominate the open-source AI ecosystem.
• The company has successfully transitioned into a high free cash flow generator, with analysts expecting net income to grow at a 12.5% CAGR for the next four years.
• Reality Labs remains a speculative growth area; while annual losses in 2025 could reach $21bn investors are now looking for Quest 3 and AR glasses adoption to signal a path to break-even.
• Risks to consider include UK and EU regulatory hurdles, specifically regarding the Digital Markets Act (DMA) and the potential for stricter data processing rules.
• By 2026, the scaling of AI agents on WhatsApp is expected to tap into the $10bn+ business messaging market opportunity.
• The increased price volatility in Meta stock during the close of 2025 is a cautionary note for potential investors and reflects uncertainty about whether the considerable investment in Reality Labs really can be monetised.

Your capital is at risk. Not investment advice

ServiceNow (NOW)

Past performance is not an indication of future results.

ServiceNow is a powerhouse in enterprise software, boasting a subscription revenue growth rate consistently above 20% as firms shift to AI-native workflows.

• The company’s GenAI product suite, “Now Assist”, has become the fastest-growing product in the firm’s history, contributing to a remaining performance obligation (RPO) exceeding $24bn, up 23% year-on-year.
• ServiceNow maintains an industry-leading gross margin of over 80%, reflecting the high efficiency and scalability of its cloud-based “Platform of Platforms.”
• With a customer renewal rate of +95%, the company demonstrates an incredibly “sticky” business model that is highly resilient to broader economic downturns.
• Strategic partnerships with NVIDIA have integrated bespoke AI hardware acceleration directly into ServiceNow’s software, reducing latency for enterprise automation.
• The firm is focused on reaching $16bn in annual revenue by the end of 2026, driven by its expansion into HR, Finance, and Legal digital workflows.
• A key consideration for investors is whether the good news is already priced into the ServiceNow stock price. The company’s forward P/E ratio often trades at a significant premium (50x+) compared to the range of 30x-40x in the broader software sector.

Your capital is at risk. Not investment advice

Novo Nordisk (NVO)

Past performance is not an indication of future results.

Novo Nordisk is the primary beneficiary of the global obesity care market, which is projected to reach a valuation of $100bn by 2030.

• Considerable investment in capex projects is now being matched by reductions in staff numbers in an effort to improve the bottom line.
• The company’s research and development (R&D) pipeline is diversifying, with late-stage trials for oral versions of GLP-1 drugs targeting a higher patient convenience factor.
• Novo maintains a dominant 43% market share in the global insulin market, providing a stable “cash cow” to fund its aggressive expansion into metabolic health.
• Analysts expect earnings per share (EPS) to grow by 13.6% through 2026 as the firm enters new emerging markets.
• The company’s annualised return on invested capital (ROIC) for the quarter that ended in Sep. 2025 was 14.85% highlighting its efficiency in applying capital to generate profits from its drug patents.
• Investors must weigh the risks of US Medicare price negotiations and potential supply chain bottlenecks that could limit short-term volume growth.

Your capital is at risk. Not investment advice

Taiwan Semiconductor Manufacturing Co. (TSM)

Past performance is not an indication of future results.

Taiwan Semiconductor Manufacturing Co. (TSMC) manufactures an estimated 90% of the world’s super-advanced chips, making it the essential foundation for all AI growth.

• 2026 is the pivotal year for 2nm (N2) mass production, with Apple and NVIDIA already securing the majority of initial capacity for their next-gen processors.
• The company’s revenue growth is forecast to accelerate to 22% in 2026, supported by a recovery in the global smartphone and PC markets.
• TSMC’s operating margins remain robust and are typically in the 40%–50% range, despite the massive $30bn+ annual capital investment required to build new fabs.
• The firm is rapidly expanding its advanced packaging (CoWoS) capacity, after NVIDIA’s decision to lock down more than half of TSMC’s advanced packaging capacity through 2027.
• With a forward dividend yield that remains attractive for a growth stock, TSMC offers a rare blend of income and aggressive capital appreciation potential.
• Geopolitical concentration remains a risk despite TSMC’s $65bn investment in Arizona, USA, and new sites in Germany and Japan which are aimed at mitigating this by 2027.

Your capital is at risk. Not investment advice

ASML Holding (ASML)

Past performance is not an indication of future results.

ASML Holding is the world’s only producer of EUV lithography machines, which cost approximately €150m–€350m per unit and are required for advanced chipmaking. It remains the highest-valued tech company in Europe, with a commitment to returning capital through a consistent share buyback programme.

• The 2026 outlook is driven by the ramp-up of High-NA EUV systems, which offer a 1.7x increase in resolution, enabling chips to be packed with more transistors.
• After a “transitional” 2024, ASML expects 2026 revenue to match that of 2025 and be in line with the upper end of its €30bn–€40bn guidance as new global fabs move into the equipment-install phase.
• The company benefits from a service-based revenue model, where maintenance of its installed base of over 400 EUV systems provides high-margin recurring income.
• ASML holds a near 100% market share in the high-end lithography space, creating a “structural moat” that competitors like Nikon or Canon have been unable to bridge.
• Risks include US-led export restrictions to China, which accounted for up to 29% of system sales in 2023, and dropped to 20% in 2025.

Your capital is at risk. Not investment advice

SentinelOne (S)

Past performance is not an indication of future results.

• SentinelOne is a high-growth cybersecurity specialist, with Annual Recurring Revenue (ARR) recently crossing the $1.bn milestone and growing at ~23% year-on-year.
• The company’s Singularity Platform uses AI to automate threat hunting, achieving a 100% protection score in recent MITRE Engenuity evaluations.
• SentinelOne is gaining traction in the Cloud Security market, where its specialised AI-powered protection Singularity Cloud Workload Security has seen impressive growth.
• The firm’s Gross Margins have improved by over 1,000 basis points in the last two years, and reached 77.5% in Q4.
• Investors are focussed on GAAP profitability in 2026, which would mark a major transition from a “growth-at-all-costs” startup to a mature software leader.
• Cybersecurity is increasingly viewed as non-discretionary spending, with global enterprise security budgets expected to increase by 10%-15% on average in 2026.
• CrowdStrike and Microsoft remain formidable competitors; SentinelOne’s path to growth relies on winning mid-market and MSP (Managed Service Provider) market share.

Your capital is at risk. Not investment advice

Final thoughts

Growth investing in 2026 requires a focus on companies that possess a “moat”—a sustainable competitive advantage. Whether it is ASML’s lithography machines or Novo Nordisk’s patent-protected healthcare breakthroughs, these companies are defining the future of their respective industries.

While the potential for capital appreciation is significant, growth stocks are sensitive to interest rate shifts and broader macroeconomic changes. Investors should ensure that these high-conviction ideas are part of a well-diversified portfolio and that they have performed their own due diligence regarding the risks involved.

Learn more about growth stocks and other asset classes at the eToro Academy.