Palantir and ServiceNow: AI Competition Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 31 2026
0mins
Source: Fool
- Palantir's Strong Performance: Palantir's revenue grew 70% year-over-year in Q4, showcasing its advantages in AI, particularly with government contracts, which are expected to further solidify its market position.
- Government Contracts Boost: The U.S. Department of Defense plans to officially designate Palantir's Maven system as a program of record, enhancing its standing in U.S. government business and potentially leading to more contracts due to increased defense spending.
- ServiceNow's Growth Potential: With a customer retention rate of 98%, ServiceNow's NowAssist generative AI product generated $600 billion in contract value last year, with expectations to exceed $1 billion this year, indicating strong market demand.
- Impact of AI Strategy: Although ServiceNow anticipates only 20% subscription revenue growth in 2026, its management's upward revision of operating margin expectations to 32% suggests that its AI strategy could drive performance beyond expectations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NOW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 89.520
Low
172.00
Averages
222.81
High
263.00
Current: 89.520
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.
Investors Shift Focus from Chip Stocks to Software
- Software Stock Rebound: Following profit-taking in red-hot chip stocks, ServiceNow's shares surged nearly 10%, with Workday and Datadog gaining 9.2% and 8.5% respectively, indicating strong market demand and potential recovery for software stocks.
- OpenAI IPO Delay: The New York Times reported that OpenAI may postpone its IPO until next year due to financial challenges, significantly impacting the performance of software stocks and causing fluctuations in market expectations for related companies.
- Chip Stock Pullback: After Micron's strong earnings report, chip stocks experienced profit-taking, with the iShares Semiconductor ETF (SOXX) declining 5.6% on Friday, reflecting cautious investor sentiment regarding the short-term outlook for the sector.
- Market Sentiment Shift: According to Stocktwits data, retail sentiment was 'neutral' for NOW, WDAY, and IGV, 'bearish' for ADBE, and 'bullish' for CRM, highlighting differing investor perspectives and expectations for the future trajectory of the software industry.
See More
U.S. Stocks Close Lower on Friday, Chipmakers Weigh on Market
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.05% and 1.09% respectively on Friday, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which could undermine investor confidence.
- Chipmaker Sell-off: The significant drop in Samsung Electronics and SK Hynix shares led to a more than 5% decline in South Korea's Kospi Index, triggering a global downturn in semiconductor stocks and exacerbating market uncertainty.
- Oil Price Impact: WTI crude oil prices fell over 3% to a four-month low on Friday, which helps lower inflation expectations and supports the stock market, but also reflects potential slowdowns in global economic growth.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward by 0.6 to 49.5, although still below the expected 50.0, indicating a cautious consumer outlook that may affect future spending.
See More
ServiceNow Shares Surge on Expanded Partnership with Google and HCLTech
- Stock Surge: ServiceNow shares rose 9.9% following the announcement of an expanded partnership with Google and HCLTech, indicating a renewed market confidence in the software sector as fears of AI models replacing specialized SaaS companies have eased.
- Enhanced Partnership: On June 25, HCLTech announced an expanded collaboration with Google Cloud and ServiceNow to deploy AI 'agents' into service, which is expected to further enhance ServiceNow's applications and market share in the AI domain.
- Significant Revenue Growth: ServiceNow reported a 22% increase in subscription revenue last quarter and raised its future outlook, demonstrating strong performance in the AI and software services market, which boosts investor confidence.
- Market Recovery Trend: The rebound in ServiceNow's stock price reflects a positive sentiment towards the software industry as investors return to high-priced software stocks after a period of exodus, acknowledging the long-term growth potential of the sector.
See More
ServiceNow Expands Partnership with HCLTech and Google, Boosting Stock
- Stock Surge: ServiceNow's shares rose 9.9% to $98.78 on Friday, despite the S&P 500 and Nasdaq closing lower, reflecting strong market confidence in its growth potential with a market cap of $92 billion.
- Partnership Expansion: The company announced an expanded partnership with HCLTech and Google Cloud to implement AI 'agents' in its services, aiming to enhance automation and efficiency, thereby solidifying its position in the AI software market.
- Software Stock Recovery: After a year of decline, software stocks are rebounding as investor fears of AI models replacing specific software diminish; ServiceNow's subscription revenue grew 22% last quarter, indicating robust market demand.
- Positive Outlook: The company raised its future earnings outlook, and while its stock isn't cheap, analysts generally view ServiceNow as a buy at current prices, reflecting confidence in its long-term growth potential.
See More
US Stock Market Under Pressure as Chip Stocks Plummet
- Market Weakness: The S&P 500 and Nasdaq 100 indices fell by 0.07% and 0.75%, respectively, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which may lead to declining investor confidence.
- Chip Stock Plunge: The significant sell-off of Samsung Electronics and SK Hynix caused the South Korean Kospi index to drop over 5%, triggering a global decline in chip stocks and exacerbating market uncertainty.
- Oil Price Decline Impact: WTI crude oil prices fell by more than 3%, easing inflation expectations and supporting stocks; however, the recovery of crude exports to 75% of pre-war levels may influence future market dynamics.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward to 49.5, although still below the expected 50.0, reflecting cautious consumer attitudes towards the economic outlook, which could affect retail and consumer-related stocks.
See More
Lumentum and ServiceNow See High Options Trading Volume
- Lumentum Options Volume: Lumentum Holdings Inc recorded options trading volume of 31,386 contracts, equating to approximately 3.1 million shares, which represents about 51.4% of its average daily trading volume over the past month, indicating strong market interest in its stock.
- High Strike Call Options: Within LITE, the $820 strike call option saw a trading volume of 7,028 contracts today, representing around 702,800 underlying shares, suggesting investor expectations for future price increases.
- ServiceNow Options Volume: ServiceNow Inc experienced options trading volume of 164,246 contracts, equivalent to approximately 16.4 million shares, which is about 50.7% of its average daily trading volume over the past month, highlighting the stock's market activity.
- High Strike Put Options: For NOW, the $65 strike put option recorded a trading volume of 14,020 contracts today, representing approximately 1.4 million shares, reflecting investor concerns regarding potential future price declines.
See More
Investors Shift Focus from Chip Stocks to Software
- Software Stock Rebound: Following profit-taking in red-hot chip stocks, ServiceNow's shares surged nearly 10%, with Workday and Datadog gaining 9.2% and 8.5% respectively, indicating strong market demand and potential recovery for software stocks.
- OpenAI IPO Delay: The New York Times reported that OpenAI may postpone its IPO until next year due to financial challenges, significantly impacting the performance of software stocks and causing fluctuations in market expectations for related companies.
- Chip Stock Pullback: After Micron's strong earnings report, chip stocks experienced profit-taking, with the iShares Semiconductor ETF (SOXX) declining 5.6% on Friday, reflecting cautious investor sentiment regarding the short-term outlook for the sector.
- Market Sentiment Shift: According to Stocktwits data, retail sentiment was 'neutral' for NOW, WDAY, and IGV, 'bearish' for ADBE, and 'bullish' for CRM, highlighting differing investor perspectives and expectations for the future trajectory of the software industry.
See More
U.S. Stocks Close Lower on Friday, Chipmakers Weigh on Market
- Market Decline: The S&P 500 and Nasdaq 100 fell by 0.05% and 1.09% respectively on Friday, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which could undermine investor confidence.
- Chipmaker Sell-off: The significant drop in Samsung Electronics and SK Hynix shares led to a more than 5% decline in South Korea's Kospi Index, triggering a global downturn in semiconductor stocks and exacerbating market uncertainty.
- Oil Price Impact: WTI crude oil prices fell over 3% to a four-month low on Friday, which helps lower inflation expectations and supports the stock market, but also reflects potential slowdowns in global economic growth.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward by 0.6 to 49.5, although still below the expected 50.0, indicating a cautious consumer outlook that may affect future spending.
See More
ServiceNow Shares Surge on Expanded Partnership with Google and HCLTech
- Stock Surge: ServiceNow shares rose 9.9% following the announcement of an expanded partnership with Google and HCLTech, indicating a renewed market confidence in the software sector as fears of AI models replacing specialized SaaS companies have eased.
- Enhanced Partnership: On June 25, HCLTech announced an expanded collaboration with Google Cloud and ServiceNow to deploy AI 'agents' into service, which is expected to further enhance ServiceNow's applications and market share in the AI domain.
- Significant Revenue Growth: ServiceNow reported a 22% increase in subscription revenue last quarter and raised its future outlook, demonstrating strong performance in the AI and software services market, which boosts investor confidence.
- Market Recovery Trend: The rebound in ServiceNow's stock price reflects a positive sentiment towards the software industry as investors return to high-priced software stocks after a period of exodus, acknowledging the long-term growth potential of the sector.
See More
ServiceNow Expands Partnership with HCLTech and Google, Boosting Stock
- Stock Surge: ServiceNow's shares rose 9.9% to $98.78 on Friday, despite the S&P 500 and Nasdaq closing lower, reflecting strong market confidence in its growth potential with a market cap of $92 billion.
- Partnership Expansion: The company announced an expanded partnership with HCLTech and Google Cloud to implement AI 'agents' in its services, aiming to enhance automation and efficiency, thereby solidifying its position in the AI software market.
- Software Stock Recovery: After a year of decline, software stocks are rebounding as investor fears of AI models replacing specific software diminish; ServiceNow's subscription revenue grew 22% last quarter, indicating robust market demand.
- Positive Outlook: The company raised its future earnings outlook, and while its stock isn't cheap, analysts generally view ServiceNow as a buy at current prices, reflecting confidence in its long-term growth potential.
See More
US Stock Market Under Pressure as Chip Stocks Plummet
- Market Weakness: The S&P 500 and Nasdaq 100 indices fell by 0.07% and 0.75%, respectively, reaching two-week lows, indicating market sensitivity to the weak performance of chipmakers, which may lead to declining investor confidence.
- Chip Stock Plunge: The significant sell-off of Samsung Electronics and SK Hynix caused the South Korean Kospi index to drop over 5%, triggering a global decline in chip stocks and exacerbating market uncertainty.
- Oil Price Decline Impact: WTI crude oil prices fell by more than 3%, easing inflation expectations and supporting stocks; however, the recovery of crude exports to 75% of pre-war levels may influence future market dynamics.
- Consumer Sentiment Revision: The University of Michigan's consumer sentiment index was revised upward to 49.5, although still below the expected 50.0, reflecting cautious consumer attitudes towards the economic outlook, which could affect retail and consumer-related stocks.
See More
Lumentum and ServiceNow See High Options Trading Volume
- Lumentum Options Volume: Lumentum Holdings Inc recorded options trading volume of 31,386 contracts, equating to approximately 3.1 million shares, which represents about 51.4% of its average daily trading volume over the past month, indicating strong market interest in its stock.
- High Strike Call Options: Within LITE, the $820 strike call option saw a trading volume of 7,028 contracts today, representing around 702,800 underlying shares, suggesting investor expectations for future price increases.
- ServiceNow Options Volume: ServiceNow Inc experienced options trading volume of 164,246 contracts, equivalent to approximately 16.4 million shares, which is about 50.7% of its average daily trading volume over the past month, highlighting the stock's market activity.
- High Strike Put Options: For NOW, the $65 strike put option recorded a trading volume of 14,020 contracts today, representing approximately 1.4 million shares, reflecting investor concerns regarding potential future price declines.
See More
