Investment Comparison: ServiceNow vs. Intuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Financial Performance Comparison: ServiceNow achieved approximately $13.3 billion in revenue for FY 2025, reflecting a 20.9% increase, with a net income of about $1.7 billion and a net margin of 13.2%, indicating strong growth potential in the enterprise software market.
- Cash Flow and Debt: ServiceNow reported free cash flow of approximately $4.6 billion and a debt-to-equity ratio of 0.2, demonstrating solid financial health that supports future expansion and innovation initiatives.
- Market Competition Pressure: Despite strong demand for ServiceNow's workflow automation software, it faces intense competition from Microsoft and Salesforce, and failure to innovate in AI could lead to lost market share.
- Intuit's Stability: Intuit generated nearly $18.8 billion in revenue for FY 2025, with a net income of approximately $3.9 billion and a net margin of 20.5%, making it a more conservatively valued option that appeals to investors seeking stable returns.
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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: 117.900
Low
172.00
Averages
222.81
High
263.00
Current: 117.900
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.
ServiceNow Reports Strong Q1 Growth with Significant AI Customer Increase
- Customer Spending Surge: ServiceNow's Now Assist AI product saw a 130% year-over-year increase in customers spending over $1 million in Q1, indicating strong demand for its automation platform and reinforcing its market position.
- Contract Value Growth: The company closed 16 deals worth over $5 million in new annual contract value, demonstrating long-term commitment from enterprises and potentially signaling a buying opportunity for investors.
- Revenue and Backlog Increase: Subscription revenue grew by 22% year-over-year, while backlog increased by 25% to nearly $28 billion, reflecting customer trust and ongoing investment in ServiceNow, suggesting a stable revenue stream ahead.
- Attractive Market Valuation: Despite a nearly 42% drop in stock price, ServiceNow's forward price-to-earnings ratio has fallen to around 30 times, significantly lower than historical levels, providing investors with an opportunity to enter this rapidly growing subscription business at a more attractive price.
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ServiceNow Stock Down 42% Yet Optimistic Outlook Persists
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- Significant Contract Growth: The company closed 16 deals worth $5 million or more in new annual contract value, suggesting this momentum may present a buying opportunity for investors and reflects corporate trust in AI solutions.
- Rising AI Product Demand: The number of customers spending $1 million or more on the Now Assist AI product surged 130% year-over-year, indicating increased trust in AI deployment, positioning ServiceNow as a trusted provider for safe, scalable AI solutions.
- Increased Valuation Attractiveness: The stock's decline has pushed ServiceNow's price-to-earnings ratio down to around 30 times, significantly below historical levels, offering investors a relatively cheap entry point, especially as the company continues to grow revenue at over 20%.
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- Amazon's Cloud Computing Edge: Amazon has partnered with OpenAI to launch a cloud platform specifically designed for agentic AI, becoming the exclusive cloud provider for OpenAI Frontier, which is expected to drive growth in its cloud computing business and further increase its market share.
- ServiceNow's AI Governance Capability: ServiceNow aims to become a leader in AI agent orchestration with its AI Control Tower solution, which monitors the performance of all AI agents within an enterprise and enhances security, potentially leading to significant revenue growth.
- Industry Trend Shift: As agentic AI rises, the GPU to CPU ratio in data centers is shifting towards 1:1, presenting substantial market opportunities for companies like AMD, which is expected to drive technological advancements and innovation in business models across the industry.
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- Oil Price Surge: WTI crude oil prices rose over 2% to a 1.5-week high following the US interception of Iranian missiles and drones, heightening concerns about Middle Eastern stability and potentially affecting global supply chains and inflation expectations.
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- Rising Oil Prices: The WTI crude oil price surged over 1% to a 1.5-week high amid US-Iran clashes, which could further elevate inflation expectations and impact Federal Reserve monetary policy decisions.
- Strong Employment Data: The US May ADP employment change rose by 122,000, exceeding expectations of 120,000, indicating signs of economic recovery that may support the stock market, although the overall market remains weighed down by declines in software and cybersecurity stocks.
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See More
ServiceNow Reports Strong Q1 Growth with Significant AI Customer Increase
- Customer Spending Surge: ServiceNow's Now Assist AI product saw a 130% year-over-year increase in customers spending over $1 million in Q1, indicating strong demand for its automation platform and reinforcing its market position.
- Contract Value Growth: The company closed 16 deals worth over $5 million in new annual contract value, demonstrating long-term commitment from enterprises and potentially signaling a buying opportunity for investors.
- Revenue and Backlog Increase: Subscription revenue grew by 22% year-over-year, while backlog increased by 25% to nearly $28 billion, reflecting customer trust and ongoing investment in ServiceNow, suggesting a stable revenue stream ahead.
- Attractive Market Valuation: Despite a nearly 42% drop in stock price, ServiceNow's forward price-to-earnings ratio has fallen to around 30 times, significantly lower than historical levels, providing investors with an opportunity to enter this rapidly growing subscription business at a more attractive price.
See More
ServiceNow Stock Down 42% Yet Optimistic Outlook Persists
- Strong Market Demand: ServiceNow's subscription revenue grew 22% year-over-year, indicating sustained enterprise demand for its services, and despite the stock decline, customers are committing long-term, showcasing the company's solid market position.
- Significant Contract Growth: The company closed 16 deals worth $5 million or more in new annual contract value, suggesting this momentum may present a buying opportunity for investors and reflects corporate trust in AI solutions.
- Rising AI Product Demand: The number of customers spending $1 million or more on the Now Assist AI product surged 130% year-over-year, indicating increased trust in AI deployment, positioning ServiceNow as a trusted provider for safe, scalable AI solutions.
- Increased Valuation Attractiveness: The stock's decline has pushed ServiceNow's price-to-earnings ratio down to around 30 times, significantly below historical levels, offering investors a relatively cheap entry point, especially as the company continues to grow revenue at over 20%.
See More
The Rise of Agentic AI and Its Opportunities
- AMD's Market Opportunity: AMD is focusing on the agentic AI sector, anticipating a $120 billion market opportunity in the coming years, particularly in the server CPU market, where its new Venice CPUs leverage TSMC's latest 2nm technology to enhance processing capabilities, likely solidifying its market leadership.
- Amazon's Cloud Computing Edge: Amazon has partnered with OpenAI to launch a cloud platform specifically designed for agentic AI, becoming the exclusive cloud provider for OpenAI Frontier, which is expected to drive growth in its cloud computing business and further increase its market share.
- ServiceNow's AI Governance Capability: ServiceNow aims to become a leader in AI agent orchestration with its AI Control Tower solution, which monitors the performance of all AI agents within an enterprise and enhances security, potentially leading to significant revenue growth.
- Industry Trend Shift: As agentic AI rises, the GPU to CPU ratio in data centers is shifting towards 1:1, presenting substantial market opportunities for companies like AMD, which is expected to drive technological advancements and innovation in business models across the industry.
See More
NASDAQ 100 Pre-Market Indicator Declines Significantly
- Market Indicator Decline: The NASDAQ 100 Pre-Market Indicator fell by 325.29 points to 30,245.95, indicating weakened market sentiment that could impact investor confidence and subsequent trading strategies.
- Active Stock Performance: Nokia Corporation (NOK) dropped by $0.9604 with a trading volume of 12,232,913 shares, while its current mean recommendation remains in the 'buy range', suggesting optimism about its future performance.
- ETF Trading Dynamics: The iShares Bitcoin Trust ETF (IBIT) decreased by $1.19 with a volume of 10,958,984 shares, yet its price is still 1.44% above its 52-week low, reflecting ongoing market interest in cryptocurrency assets.
- Stock Recommendation Status: Broadcom Inc. (AVGO) fell by $68.13 with 4,118,593 shares traded, but its current mean recommendation is in the 'buy range', indicating that analysts remain optimistic about its long-term prospects despite price pressures.
See More
US Stock Indices Decline Amid Tensions and Economic Data
- Market Retreat: On Wednesday, the S&P 500 index fell by 0.74%, the Dow Jones Industrial Average dropped by 1.21%, and the Nasdaq 100 index decreased by 0.29%, indicating market vulnerability amid escalating US-Iran tensions that negatively impacted investor sentiment.
- Oil Price Surge: WTI crude oil prices rose over 2% to a 1.5-week high following the US interception of Iranian missiles and drones, heightening concerns about Middle Eastern stability and potentially affecting global supply chains and inflation expectations.
- Strong Employment Data: The US May ADP employment change increased by 122,000, surpassing expectations of 120,000, signaling signs of economic recovery that could support the stock market, although overall market performance remains influenced by other factors.
- Divergent Tech Stock Performance: While Marvell Technology rose over 3%, software and cybersecurity stocks faced significant declines, with Datadog and IBM dropping more than 6%, reflecting a lack of confidence in the tech sector despite some positive developments.
See More
US Stock Market Slides Amid Geopolitical Tensions
- Market Decline: The S&P 500 index fell by 0.40%, the Dow Jones Industrial Average dropped by 0.74%, and the Nasdaq 100 decreased by 0.08%, indicating market pressure due to escalating geopolitical tensions, particularly between the US and Iran.
- Rising Oil Prices: The WTI crude oil price surged over 1% to a 1.5-week high amid US-Iran clashes, which could further elevate inflation expectations and impact Federal Reserve monetary policy decisions.
- Strong Employment Data: The US May ADP employment change rose by 122,000, exceeding expectations of 120,000, indicating signs of economic recovery that may support the stock market, although the overall market remains weighed down by declines in software and cybersecurity stocks.
- Divergent Tech Stock Performance: Despite overall market pressure, Marvell Technology's stock rose over 7% following Nvidia CEO's prediction that it would reach a $1 trillion valuation, highlighting the supportive role of AI infrastructure spending on technology stocks.
See More
