Servicenow Vs Salesforce Stock

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Servicenow Vs Salesforce Stock

ServiceNow Vs. Salesforce: Which AI Stock To Buy?

There's no doubt that 2026 has proven itself to be very tough for the software stocks. Amidst all of this, both the ServiceNow and the Salesforce stock prices are also down a lot this year.

But, is it the right time to buy the Salesforce and the ServiceNow stock at a discount? Also, if you had to choose between these two, would you buy Salesforce or ServiceNow?

Salesforce

When we talk about CRM, the first thing that comes to mind is Salesforce. The firm has managed to stay at the top of the CRM space for multiple years and has also earned a lot of money.

The firm has also managed to move ahead with many of its AI initiatives. For example, Salesforce earned $800 million in revenue from its Agentforce platform in a year, and the best part is that it was recurring revenue.

However, analysts think that while the revenue is growing, Salesforce's momentum is slowing down. The organic revenue growth during the FY Q4 was down by 8% y/y from around 9% in Q3. According to management, the organic revenue growth rate will be between 7% to 8% in FY 2027.

ServiceNow

ServiceNow is also a popular enterprise workflow software with incredible growth. The Q4 revenue was $3.47 billion, which is an increase of 21% y/y.

ServiceNow's RPO is also now sitting at $12.85 billion, which is an increase of 25%. This is also a sign that ServiceNow is expected to have robust demand in the future.

What's more impressive is that ServiceNow is also involved in the AI space. For example, the contract value for AI service Now Assist from ServiceNow was above $600 million in Q4.

Also, ServiceNow continues to convert all of this revenue into free cash flow, which is now sitting at a healthy number.

Which Stock To Buy?

A quick look at both stocks reveals that ServiceNow is the better choice. The stock has a forward P/E of 29, and its P/S is around 10.

This makes the valuation of ServiceNow stock very attractive and a much better option than Salesforce.

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