Analyzing the AI Competition Between Oracle and ServiceNow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 47 minutes ago
0mins
Source: Fool
- Oracle Financial Performance: For the fiscal year ending May 31, 2025, Oracle reported revenue of $57.4 billion, an 8% increase year-over-year, with a net income of $12.4 billion and a net margin of 21.7%, while projecting sales to soar to $67 billion in fiscal 2026, indicating a steady growth trend.
- ServiceNow Growth Momentum: ServiceNow achieved revenue of $13.3 billion in fiscal 2025, reflecting a 21% year-over-year growth, with a net income of approximately $1.7 billion and a net margin of 13.2%, and continued this trend into the first quarter of 2026 with a 22% sales increase, demonstrating strong market demand for its AI offerings.
- Risks and Competition: Oracle faces fierce competition from Microsoft and Amazon, necessitating continuous investment to maintain its market position while managing complex supply chain risks; ServiceNow must navigate innovation pressures from larger software vendors and ethical compliance challenges related to AI technology.
- Valuation Comparison: While ServiceNow's lower P/E and P/S ratios suggest a more attractive pricing, Oracle is still viewed as a more compelling investment due to its strong customer demand and historical success, especially under the leadership of its new co-CEOs.
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Analyst Views on ORCL
Wall Street analysts forecast ORCL stock price to rise
34 Analyst Rating
25 Buy
9 Hold
0 Sell
Moderate Buy
Current: 193.060
Low
180.00
Averages
309.59
High
400.00
Current: 193.060
Low
180.00
Averages
309.59
High
400.00
About ORCL
Oracle Corporation offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. The Company operates through three businesses: cloud and license, hardware and service. Its cloud and license business is engaged in the sale, marketing and delivery of its enterprise applications and infrastructure technologies through cloud and on-premise deployment models including its cloud services and license support offerings, and its cloud license and on-premise license offerings. Its hardware business provides infrastructure technologies including Oracle Engineered Systems, servers, storage, industry-specific hardware, operating systems, virtualization, management and other hardware-related software to support diverse IT environments. Its services business provides services to customers and partners to help maximize the performance of their investments in Oracle applications and infrastructure technologies.
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.
Oracle's Major Investment in Data Centers
- Data Center Investment: Oracle is making significant investments in building data centers, although specific amounts are not disclosed, this move underscores its commitment to the cloud computing and AI markets, aiming to enhance its competitive position.
- AI and Wealth Creation: Analysts suggest that AI could create the world's first trillionaire, a notion that has sparked widespread market interest in AI technology, potentially impacting the stock performance of related companies.
- Investment Recommendations: Despite Oracle's strong performance in technology, it was not included in the current list of top investment stocks by The Motley Fool's analyst team, indicating a cautious market sentiment regarding its future performance.
- Historical Return Comparison: According to The Motley Fool, previously recommended stocks like Netflix and Nvidia yielded impressive returns of $472,852 and $1,317,207 respectively, highlighting the importance of stock selection in investment strategies.
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Oracle's Significant Investment in Data Centers
- Massive Investment: Oracle is making significant investments in building data centers, although specific amounts are undisclosed, this move demonstrates the company's strong confidence in the cloud computing market and aims to increase its market share in a highly competitive industry.
- Positive Market Reaction: Based on the afternoon stock prices from May 25, 2026, Oracle's stock has shown an upward trend, reflecting investor optimism about the company's future growth potential, which may further drive stock price increases.
- Strategic Optimization: By constructing new data centers, Oracle not only enhances its cloud service delivery capabilities but also improves the efficiency of customer data processing, thereby gaining a greater competitive edge in the cloud computing sector.
- Future Growth Expectations: With the new data centers coming online, Oracle anticipates being able to meet the increasing market demand, further solidifying its leadership position in the global cloud computing market and driving long-term business growth.
See More
Bloom Energy: A Leader in Clean Energy Sector
- Strong Financial Performance: Bloom Energy reported $751 million in revenue for Q1 2026, marking a 130% year-over-year increase and achieving positive cash flow for the first time, significantly improving its financial outlook and boosting investor confidence.
- Strategic Partnership Expansion: The partnership with Oracle has expanded to supply up to 2.8 GW of fuel cells to support AI infrastructure demands, with this long-term contract expected to generate substantial revenue for Bloom, further solidifying its market position.
- Surge in Backlog: Bloom's backlog has ballooned to $20 billion, a 250% year-over-year increase, indicating strong demand in the rapidly growing AI infrastructure market and suggesting significant revenue growth potential in the future.
- Elevated Market Expectations: Bloom raised its full-year 2026 revenue guidance to $3.4 billion to $3.8 billion, exceeding Wall Street expectations, prompting analysts to raise price targets, reflecting a positive outlook on its future growth.
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- Oracle Financial Performance: For the fiscal year ending May 31, 2025, Oracle reported revenue of $57.4 billion, an 8% increase year-over-year, with a net income of $12.4 billion and a net margin of 21.7%, while projecting sales to soar to $67 billion in fiscal 2026, indicating a steady growth trend.
- ServiceNow Growth Momentum: ServiceNow achieved revenue of $13.3 billion in fiscal 2025, reflecting a 21% year-over-year growth, with a net income of approximately $1.7 billion and a net margin of 13.2%, and continued this trend into the first quarter of 2026 with a 22% sales increase, demonstrating strong market demand for its AI offerings.
- Risks and Competition: Oracle faces fierce competition from Microsoft and Amazon, necessitating continuous investment to maintain its market position while managing complex supply chain risks; ServiceNow must navigate innovation pressures from larger software vendors and ethical compliance challenges related to AI technology.
- Valuation Comparison: While ServiceNow's lower P/E and P/S ratios suggest a more attractive pricing, Oracle is still viewed as a more compelling investment due to its strong customer demand and historical success, especially under the leadership of its new co-CEOs.
See More
US Stocks Rebound in Q1, Led by Tech Sector Growth
- Q1 Earnings Surge: As of the end of March 2025, the S&P 500 saw earnings growth exceeding 28%, marking the fastest year-over-year growth since Q4 2021, with 84% of its constituents surpassing analyst expectations, indicating strong market recovery potential.
- Tech Sector Dominance: Companies like Meta and Alphabet made the largest contributions to market improvement, with the 'Magnificent Seven' achieving an average Q1 profit growth of 63%, significantly outpacing the 17% growth of the other 493 stocks, underscoring the tech industry's critical role in overall market performance.
- Market Risks and Imbalance: Despite impressive Q2 gains, the 20% year-to-date rise in energy stocks accounts for most of the market's strength, revealing an imbalance that investors should approach with caution due to potential risks.
- Dependency on Future Growth: Analysts project a 23% earnings growth for the S&P 500 in 2026, yet the tech sector's future growth heavily relies on the performance of other tech firms, where any failure could undermine revenue expectations, adding uncertainty to the market outlook.
See More
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- Market Rally Analysis: Since late 2025, the S&P 500 has risen over 9%, recovering from a 5% decline at the start of the year due to military conflicts in Iran, indicating a strong market rebound; however, this rebound is uneven, prompting investors to exercise caution.
- Earnings Growth Highlights: According to FactSet, 84% of S&P 500 constituents exceeded analyst expectations in Q1, with earnings growth surpassing 28%, marking the fastest year-over-year growth since the worst of the COVID-19 pandemic in 2021, showcasing robust corporate earnings momentum.
- Tech Stocks Dominate Market: Technology companies like Meta and Alphabet contributed significantly to market improvements, and while energy stocks benefited from soaring oil prices, the strong performance of tech stocks still accounts for about one-third of the S&P 500's total market value, indicating structural imbalances in the market.
- Future Growth Risks: Although analysts expect a 23% earnings growth for the S&P 500 in 2026, the future growth of the tech sector heavily relies on the performance of other tech companies, meaning any failure in one link could impact overall revenue and earnings expectations, necessitating caution from investors regarding potential risks.
See More
Oracle's Major Investment in Data Centers
- Data Center Investment: Oracle is making significant investments in building data centers, although specific amounts are not disclosed, this move underscores its commitment to the cloud computing and AI markets, aiming to enhance its competitive position.
- AI and Wealth Creation: Analysts suggest that AI could create the world's first trillionaire, a notion that has sparked widespread market interest in AI technology, potentially impacting the stock performance of related companies.
- Investment Recommendations: Despite Oracle's strong performance in technology, it was not included in the current list of top investment stocks by The Motley Fool's analyst team, indicating a cautious market sentiment regarding its future performance.
- Historical Return Comparison: According to The Motley Fool, previously recommended stocks like Netflix and Nvidia yielded impressive returns of $472,852 and $1,317,207 respectively, highlighting the importance of stock selection in investment strategies.
See More
Oracle's Significant Investment in Data Centers
- Massive Investment: Oracle is making significant investments in building data centers, although specific amounts are undisclosed, this move demonstrates the company's strong confidence in the cloud computing market and aims to increase its market share in a highly competitive industry.
- Positive Market Reaction: Based on the afternoon stock prices from May 25, 2026, Oracle's stock has shown an upward trend, reflecting investor optimism about the company's future growth potential, which may further drive stock price increases.
- Strategic Optimization: By constructing new data centers, Oracle not only enhances its cloud service delivery capabilities but also improves the efficiency of customer data processing, thereby gaining a greater competitive edge in the cloud computing sector.
- Future Growth Expectations: With the new data centers coming online, Oracle anticipates being able to meet the increasing market demand, further solidifying its leadership position in the global cloud computing market and driving long-term business growth.
See More
Bloom Energy: A Leader in Clean Energy Sector
- Strong Financial Performance: Bloom Energy reported $751 million in revenue for Q1 2026, marking a 130% year-over-year increase and achieving positive cash flow for the first time, significantly improving its financial outlook and boosting investor confidence.
- Strategic Partnership Expansion: The partnership with Oracle has expanded to supply up to 2.8 GW of fuel cells to support AI infrastructure demands, with this long-term contract expected to generate substantial revenue for Bloom, further solidifying its market position.
- Surge in Backlog: Bloom's backlog has ballooned to $20 billion, a 250% year-over-year increase, indicating strong demand in the rapidly growing AI infrastructure market and suggesting significant revenue growth potential in the future.
- Elevated Market Expectations: Bloom raised its full-year 2026 revenue guidance to $3.4 billion to $3.8 billion, exceeding Wall Street expectations, prompting analysts to raise price targets, reflecting a positive outlook on its future growth.
See More
Analyzing the AI Competition Between Oracle and ServiceNow
- Oracle Financial Performance: For the fiscal year ending May 31, 2025, Oracle reported revenue of $57.4 billion, an 8% increase year-over-year, with a net income of $12.4 billion and a net margin of 21.7%, while projecting sales to soar to $67 billion in fiscal 2026, indicating a steady growth trend.
- ServiceNow Growth Momentum: ServiceNow achieved revenue of $13.3 billion in fiscal 2025, reflecting a 21% year-over-year growth, with a net income of approximately $1.7 billion and a net margin of 13.2%, and continued this trend into the first quarter of 2026 with a 22% sales increase, demonstrating strong market demand for its AI offerings.
- Risks and Competition: Oracle faces fierce competition from Microsoft and Amazon, necessitating continuous investment to maintain its market position while managing complex supply chain risks; ServiceNow must navigate innovation pressures from larger software vendors and ethical compliance challenges related to AI technology.
- Valuation Comparison: While ServiceNow's lower P/E and P/S ratios suggest a more attractive pricing, Oracle is still viewed as a more compelling investment due to its strong customer demand and historical success, especially under the leadership of its new co-CEOs.
See More
US Stocks Rebound in Q1, Led by Tech Sector Growth
- Q1 Earnings Surge: As of the end of March 2025, the S&P 500 saw earnings growth exceeding 28%, marking the fastest year-over-year growth since Q4 2021, with 84% of its constituents surpassing analyst expectations, indicating strong market recovery potential.
- Tech Sector Dominance: Companies like Meta and Alphabet made the largest contributions to market improvement, with the 'Magnificent Seven' achieving an average Q1 profit growth of 63%, significantly outpacing the 17% growth of the other 493 stocks, underscoring the tech industry's critical role in overall market performance.
- Market Risks and Imbalance: Despite impressive Q2 gains, the 20% year-to-date rise in energy stocks accounts for most of the market's strength, revealing an imbalance that investors should approach with caution due to potential risks.
- Dependency on Future Growth: Analysts project a 23% earnings growth for the S&P 500 in 2026, yet the tech sector's future growth heavily relies on the performance of other tech firms, where any failure could undermine revenue expectations, adding uncertainty to the market outlook.
See More
Risks and Opportunities Behind Market Rally
- Market Rally Analysis: Since late 2025, the S&P 500 has risen over 9%, recovering from a 5% decline at the start of the year due to military conflicts in Iran, indicating a strong market rebound; however, this rebound is uneven, prompting investors to exercise caution.
- Earnings Growth Highlights: According to FactSet, 84% of S&P 500 constituents exceeded analyst expectations in Q1, with earnings growth surpassing 28%, marking the fastest year-over-year growth since the worst of the COVID-19 pandemic in 2021, showcasing robust corporate earnings momentum.
- Tech Stocks Dominate Market: Technology companies like Meta and Alphabet contributed significantly to market improvements, and while energy stocks benefited from soaring oil prices, the strong performance of tech stocks still accounts for about one-third of the S&P 500's total market value, indicating structural imbalances in the market.
- Future Growth Risks: Although analysts expect a 23% earnings growth for the S&P 500 in 2026, the future growth of the tech sector heavily relies on the performance of other tech companies, meaning any failure in one link could impact overall revenue and earnings expectations, necessitating caution from investors regarding potential risks.
See More
