ServiceNow and UiPath's AI Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2026
0mins
Should l Buy NOW?
Source: NASDAQ.COM
- Revenue Growth Momentum: ServiceNow continues to grow rapidly in the IT service management sector, with recent earnings reports indicating strong revenue growth rates, and it is expected to further drive revenue through its Control Tower solution, solidifying its market leadership.
- Layering AI Applications: By leveraging strong adoption of its Now Assist suite, ServiceNow enhances its market penetration of AI applications, while the launch of Control Tower could become a key driver in the agentic AI orchestration space, improving client workflow efficiency.
- Market Opportunity for UiPath: UiPath's leadership in robotic process automation (RPA) has laid the groundwork for its Maestro platform, which effectively manages software bots and third-party AI agents, expected to save costs for clients and enhance operational efficiency.
- Valuation Appeal: UiPath currently trades at a forward price-to-sales ratio of 3.5 and a price-to-earnings ratio below 15, indicating significant undervaluation potential, and if the company can sustain growth, it is poised to lead in the agentic AI orchestration market.
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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: 90.490
Low
172.00
Averages
222.81
High
263.00
Current: 90.490
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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- Remaining Performance Obligations (RPO) Trends: The company's RPO increased by 23.5% to $27.3 billion, with current RPO rising by 21% to $12.45 billion, reflecting a deceleration in growth that may impact investor expectations for future revenue.
- Future Outlook and Guidance: ServiceNow anticipates a 22.5% growth in subscription revenue for Q2, raising its full-year guidance to a range of $15.735 billion to $15.775 billion, demonstrating confidence in future growth prospects, particularly following the acquisition of cybersecurity firm Armis, expected to add 125 basis points of growth.
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See More
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- Revenue Growth: ServiceNow reported a 22% year-over-year revenue increase to $3.77 billion in Q1, surpassing analyst expectations of $3.74 billion, yet the stock declined due to market concerns about future growth.
- Subscription Revenue Analysis: Subscription revenue rose 22% to $3.67 billion, but on a constant currency basis, growth slowed from 19.5% in Q4 to 19%, reflecting market anxiety over sustained growth.
- Remaining Performance Obligations: The company's remaining performance obligations (RPO) increased by 23.5% to $27.3 billion, with current RPO rising 21% to $12.45 billion, indicating future revenue potential despite a deceleration in growth rates.
- Future Outlook: ServiceNow anticipates a 22.5% growth in subscription revenue for Q2, raising its full-year guidance to between $15.735 billion and $15.775 billion, although concerns about AI's impact persist, necessitating investor attention on signs of accelerating growth.
See More
Software Company Stock Plummets, Disappointing Investors
- Stock Price Crash: The software company's stock experienced a significant drop during afternoon trading on April 26, 2026, leading to investor disappointment and directly impacting market confidence.
- Investor Reaction: The failure to meet expected financial metrics prompted a sell-off among investors, resulting in a sharp decline in stock price, which reflects a decrease in trust towards the company's management.
- Market Impact: This stock crash not only affects the company's market capitalization but may also negatively influence its future financing capabilities, thereby limiting its potential for expansion and innovation.
- Need for Strategic Adjustment: In light of the strong investor backlash, the company may need to reassess its strategic direction to restore market confidence and attract new investors.
See More
Management Eases Investor Concerns in Conference Call
- Investor Confidence Restoration: The management team actively addressed analyst questions during the conference call, attempting to alleviate investor concerns about the company's future, indicating confidence in market prospects.
- Stock Price Analysis: As of the afternoon of April 25, 2026, the company's stock price performance was influenced by investor sentiment, with management emphasizing measures to stabilize stock prices and enhance market confidence.
- Future Strategic Planning: Management revealed future strategic plans during the meeting aimed at driving company growth through innovation and market expansion, thereby enhancing investor confidence in the company's long-term value.
- Increased Transparency: The conference call marked an improvement in the company's communication transparency with investors, with management committing to regular updates on company progress to bolster investor trust.
See More
ServiceNow Q1 Results Beat Expectations Yet Stock Declines
- Revenue Growth Overview: ServiceNow reported a 22% year-over-year revenue increase to $3.77 billion in Q1, surpassing analyst expectations of $3.69 billion, indicating strong performance in the SaaS sector despite cautious market sentiment regarding future growth.
- Subscription Revenue Insights: Subscription revenue rose 22% to $3.67 billion, although on a constant currency basis, growth slightly declined from 19.5% in Q4 to 19%, suggesting challenges in maintaining investor confidence in sustained growth.
- Remaining Performance Obligations (RPO) Trends: The company's RPO increased by 23.5% to $27.3 billion, with current RPO rising by 21% to $12.45 billion, reflecting a deceleration in growth that may impact investor expectations for future revenue.
- Future Outlook and Guidance: ServiceNow anticipates a 22.5% growth in subscription revenue for Q2, raising its full-year guidance to a range of $15.735 billion to $15.775 billion, demonstrating confidence in future growth prospects, particularly following the acquisition of cybersecurity firm Armis, expected to add 125 basis points of growth.
See More
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- Oracle's Strong Growth: In Q3 of fiscal 2026, Oracle's cloud computing revenue surged 44% year-over-year to $8.9 billion, driving overall sales up 22% to $17.2 billion, indicating robust customer demand for AI infrastructure and solidifying its market position.
- ServiceNow's Platform Advantage: Despite a more than 30% drop in ServiceNow's stock price in early 2026, its Q1 sales grew 22% year-over-year to $3.8 billion, with a projected 22% growth in subscription sales for Q2, demonstrating its competitiveness in the AI era.
- Atlassian's Market Performance: Atlassian achieved a 23% year-over-year revenue increase to $1.6 billion in Q2 2026, with RPO reaching $3.8 billion, reflecting enhanced user engagement with its AI product Rovo and strengthening its competitive position.
- Increased Investment Appeal: The significant stock price declines of Oracle, ServiceNow, and Atlassian have drawn investor attention to their current valuation levels, with all three companies viewed as worthwhile AI growth stocks to buy and hold for the long term, reflecting market recognition of their future growth potential.
See More
ServiceNow and Salesforce's Strategic Positioning in the AI Era
- Market Positioning Advantage: ServiceNow, a leader in the SaaS sector, has its configuration management database (CMDB) as the core of customer technical infrastructure, expected to become a major platform for its AI Control Tower solution, driving around 20% revenue growth and potentially achieving over 85% stock price upside.
- Data Integration Capability: Salesforce's introduction of the Data 360 solution, utilizing zero-copy technology for efficient customer data integration, ensures AI agents can access clean, structured data, enhancing its competitive edge in the AI era, with a projected compound annual growth rate of about 11% through fiscal 2030.
- Industry Challenges and Opportunities: While the SaaS industry faces challenges from AI agents potentially replacing some software functions, ServiceNow and Salesforce have strengthened their software's irreplaceability by deeply embedding into customer workflows, ensuring clients can still rely on the stability and security of their core systems when using AI.
- Future Pricing Model Evolution: As AI agents become more prevalent, traditional seat-based pricing models may evolve into usage or hybrid seat and consumption models, impacting future revenue structures for SaaS companies, with ServiceNow and Salesforce well-positioned to adapt to this transformation.
See More
