Comparative Analysis of AI Strategies: ServiceNow vs Salesforce
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Market Challenges: In 2026, SaaS stocks faced significant sell-offs due to fears that artificial intelligence could disrupt the industry, leading to a phenomenon dubbed the 'SaaSpocalypse,' which negatively impacted valuations and investor confidence across the sector.
- ServiceNow's AI Leadership: With the introduction of its AI Control Tower and acquisitions of Armis and Veza, ServiceNow is enhancing its capabilities in rights management and asset visibility, positioning itself to become a leader in agentic AI orchestration, which is expected to drive future growth for the company.
- Salesforce's Data Advantage: By launching its Data 360 solution and acquiring Informatica, Salesforce ensures its platform can effectively manage customer data, establishing itself as an ideal launching pad for AI agents, with projections of low double-digit revenue growth in the coming years.
- Valuation and Growth Potential: ServiceNow trades at a forward price-to-sales (P/S) multiple of 6 and a price-to-earnings (P/E) multiple of 22, with an expected revenue growth of around 20%, while Salesforce has a forward P/S of 3.7 and a P/E of 14, reflecting differing valuations and growth prospects in the age of AI.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 88.310
Low
172.00
Averages
222.81
High
263.00
Current: 88.310
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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