Got $5,000? 3 Tech Stocks to Buy and Hold for the Long Term

Key Points

• Workday turned profitable in fiscal 2024 and has seen its free cash flow generation increase steadily over the years.

• Samsara is seeing demand grow for its artificial intelligence (AI)-powered solutions, and the business turned free cash flow positive for its latest fiscal year.

• MongoDB’s database software offers greater flexibility for customers, and the company is experiencing surging demand for its services.

• 10 stocks we like better than Workday ›

The technology space has seen major innovations that help organizations increase their efficiency and also made life easier. Demand for such services should stay buoyant as more businesses digitalize and adopt cloud software to improve their operations.

With this surge in demand, it makes sense to park some money into promising technology growth stocks and hold them for the long term. By doing so, you can compound your wealth to build a larger nest egg for your retirement.

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Here are three attractive technology stocks that you can accumulate for the long run.

Image source: Getty images.

1. Workday

Workday (NASDAQ: WDAY) operates a cloud-based platform that provides human capital management and financial management applications, boasting more than 11,000 customers across 175 countries. The company is seeing strong demand for its services, evidenced by its revenue rising steadily over the years. The business turned profitable in fiscal 2024 and has also seen its free cash flow generation improve.

Data source: Workday. Fiscal years end Jan. 31. Chart by author.

Workday continued to churn out an impressive set of financial numbers for the first quarter of fiscal 2025. Revenue rose 12.6% year over year to $2.2 billion, but operating income plunged 39% year over year to $39 million because of a restructuring charge. Excluding this, both operating and net income would have soared 185% and 103% year over year, respectively, to $205 million and $234 million.

Workday continued to generate healthy free cash flow of $421 million, 45% higher than a year ago. The company reported a total subscription revenue backlog of $24.6 billion, an increase of 19% year over year. For fiscal 2026, the business expects revenue to increase by 12% year over year to $9.5 billion, aided by a 14% year-over-year growth in subscription revenue.

This earnings momentum looks set to continue, with Workday introducing new partnerships with companies such as Accenture and Microsoft to connect their AI agents with Workday's agent system. This newly created agent gateway will allow its partners to integrate their AI systems with Workday and streamline workflows, benefiting both sets of customers.

Workday also introduced innovations to accelerate hiring and simplify financial processes, a move that should endear it to customers and help it to attract new business. Management identified a $160 billion total addressable market that presents enticing opportunities for the business to grow further in the years ahead.

2. Samsara

Samsara (NYSE: IOT) operates a platform that connects people, devices, and systems to generate actionable insights to help improve organizational performance. Demand for the company's services has surged in recent years, as evidenced by the surge in revenue and an improving gross profit margin, as shown in the table. The business also turned free cash flow positive in its latest fiscal year.

Data source: Samsara. Fiscal years end Jan. 31. Chart by author.

Samsara continued to report impressive numbers for the first quarter of fiscal 2026, with revenue climbing 30.7% year over year to $366.9 million. Gross profit margin continued its ascent, hitting 77.3% for the quarter. The business also saw free cash flow generation more than double year over year to $45.7 million from just $18.6 million a year ago. Its ending annual recurring revenue (ARR) shot up 31% year over year to $1.5 billion. Customers are also spending more, and those with ARR above $100,000 grew 35% year over year to 2,638.

Management provided a glimpse of how the business can continue to grow during its recent Investor Day event held in June this year. The company's aim is to build one of the world's largest operational datasets, thereby increasing stickiness for its connected operations platform. By harnessing the flywheel effect, Samsara hopes to attract more customers as it scales up its data points and new products.

The "land and expand" strategy helps the business to secure customers and then upsell subscriptions of existing products and cross-sell new products. Samsara identified an estimated market size of $137 billion for its connected operations, giving it a huge runway for potential growth, not just in the U.S. but also internationally.

3. MongoDB

MongoDB (NASDAQ: MDB) operates a data platform with integrated capabilities for search and real-time analytics. Its cloud platform enables AI-powered retrieval to help organizations to simplify their system architectures, innovate, and operate more efficiently. The business is seeing healthy traction as its revenue increases steadily over the years, with gross profit margin hovering between 72% to 75%. Crucially, MongoDB turned free cash flow positive in fiscal 2024, and the business looks likely to sustain this trend.

Data source: MongoDB. Fiscal years end Jan. 31. Chart by author.

For the first quarter of fiscal 2026, MongoDB's revenue jumped 21.9% year over year to $549 million, while its gross profit increased 19.2% year over year to $391 million. Free cash flow continued to climb, touching $108.3 million for the quarter, and is already close to the level it was for the whole of fiscal 2025. Total customer count continued its climb, touching more than 57,100 for the quarter, up 16% year over year. Customers with more than $100,000 of annualized monthly recurring revenue also shot up 17.3% year over year to 2,506, showcasing higher overall spending for MongoDB's customer base.

For fiscal 2026, management expects revenue to hit $2.27 billion at the midpoint of its guidance, representing a year-over-year growth of almost 13%.

It's still early days for MongoDB when it comes to potential growth. The company has enterprise accounts with just 30% of the Global 2000 companies, suggesting room for further business penetration.

In February, the company acquired Voyage AI, a software company with embedding models to help power next-generation AI applications. Voyage AI is a market leader in AI-powered search and retrieval, and its integration into MongoDB's platform will enhance MongoDB's AI capabilities and allow the company to scale its AI applications. This astute move will benefit the business by making it more attractive to potential customers.

The data management software market's total addressable market stood at $94 billion in 2024 and is projected to grow to $153 billion by 2028. MongoDB is well positioned to capture a slice of this burgeoning market to further grow its top line and free cash flow.

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Royston Yang has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, Microsoft, MongoDB, and Workday. The Motley Fool recommends Samsara and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.