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NOW vs WDAY
Which Stock Would AI Choose? ServiceNow (NOW) vs. Workday (WDAY) Stock Comparison
Key Takeaways
- ServiceNow delivered subscription revenue growth of 22% year-over-year in its most recent quarter, outpacing Workday’s 15.7% subscription revenue increase from its prior fiscal period.
- Both stocks have experienced significant year-to-date declines, with ServiceNow down approximately 32% and Workday down about 40% as of mid-May 2026, reflecting broader sector pressures.
- ServiceNow’s focus on AI-driven workflow automation and recent acquisitions has supported relative outperformance in recent market activity compared to Workday’s steady but slower growth in human capital management.
- Workday maintains a strong position in enterprise finance and HR software with consistent double-digit revenue expansion, though its valuation metrics reflect higher sensitivity to macroeconomic uncertainty.
- Sector exposure differs notably, as ServiceNow benefits from IT service management and digital transformation trends while Workday emphasizes recurring subscription revenue in core enterprise applications.
- Relative momentum favors ServiceNow in the near term due to stronger earnings beats and analyst upgrades amid AI integration themes.
Introduction
ServiceNow and Workday represent two prominent players in the enterprise cloud software sector, each addressing distinct yet overlapping aspects of business operations. ServiceNow specializes in digital workflows and IT service management, while Workday focuses on human capital management and financial applications. This comparison examines their relative performance, business models, and market positioning to assist institutional investors, portfolio managers, and active traders evaluating exposure within the software-as-a-service space. The analysis highlights observable trends from recent market activity without projecting future outcomes.
ServiceNow Overview and Recent Performance
ServiceNow provides cloud-based platforms for workflow automation, IT operations, and digital transformation across enterprises. In recent weeks, the stock has shown notable volatility following its first-quarter 2026 earnings release, where subscription revenues reached $3.671 billion, reflecting 22% year-over-year growth and beating guidance across key metrics. The company raised its full-year subscription revenue outlook, citing advancements in artificial intelligence integration. Despite broader market headwinds contributing to a year-to-date decline of approximately 32%, recent trading sessions demonstrated resilience with an 8.78% single-day gain on May 18 amid positive analyst commentary. Sentiment has been influenced by the company’s emphasis on AI capabilities and strategic acquisitions supporting long-term platform expansion.
Workday Overview and Recent Performance
Workday delivers cloud applications for financial management, human resources, and planning, serving large enterprises with subscription-based solutions. Its most recent fiscal results, covering the fourth quarter of fiscal 2026, showed total revenues of $2.532 billion, up 14.5% year-over-year, with subscription revenues rising 15.7%. The company continues to report solid operating cash flow growth. In recent market activity, the stock has traded within a range influenced by sector rotation and macroeconomic factors, posting a year-to-date decline near 40% as of mid-May 2026. Performance reflects steady demand for its core offerings, though upcoming earnings later in May may provide further clarity on margin trends and guidance.
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Head-to-Head Comparison
ServiceNow and Workday operate in adjacent segments of the enterprise software industry, creating clear contrasts in growth drivers and risk profiles. ServiceNow derives a larger share of its momentum from IT service management and workflow automation, benefiting from accelerating adoption of AI-enhanced platforms, whereas Workday emphasizes stable recurring revenue in human resources and finance, which provides greater predictability but slower expansion rates. Recent momentum has tilted toward ServiceNow following its earnings beat and analyst upgrades, while Workday exhibits steadier but more modest subscription growth. Both companies face similar sector exposure to enterprise spending cycles and competition from larger cloud providers; however, ServiceNow’s higher operating margins and recent catalyst activity contrast with Workday’s broader customer base and lower valuation multiples. Market sentiment currently reflects caution across the sector, with neither stock showing clear dominance in stability or upside catalysts.
Tickeron AI Verdict
Based on observable factors including recent earnings consistency, relative price recovery, and alignment with artificial intelligence integration trends, Tickeron’s AI models currently assign a modestly higher probability of favorable positioning to ServiceNow over Workday. This assessment draws from trend stability and catalyst visibility rather than definitive forecasts, acknowledging that market conditions can shift rapidly and both equities carry inherent volatility typical of the software sector.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Disclaimers and LimitationsTo compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is NOW is a Hold and WDAY is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
NOW’s FA Score shows that 0 FA rating(s) are green whileWDAY’s FA Score has 0 green FA rating(s).
- NOW’s FA Score: 0 green, 5 red.
- WDAY’s FA Score: 0 green, 5 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
NOW’s TA Score shows that 6 TA indicator(s) are bullish while WDAY’s TA Score has 6 bullish TA indicator(s).
- NOW’s TA Score: 6 bullish, 4 bearish.
- WDAY’s TA Score: 6 bullish, 4 bearish.
Price Growth
NOW (@Packaged Software) experienced а -10.04% price change this week, while WDAY (@Packaged Software) price change was -6.42% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -3.48%. For the same industry, the average monthly price growth was +0.58%, and the average quarterly price growth was -12.70%.
Reported Earning Dates
NOW is expected to report earnings on Jul 29, 2026.
WDAY is expected to report earnings on Aug 20, 2026.
Industries' Descriptions
@Packaged Software (-3.48% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
| NOW | WDAY | NOW / WDAY | |
| Capitalization | 109B | 34B | 321% |
| EBITDA | 3.24B | 1.73B | 187% |
| Gain YTD | -30.766 | -35.995 | 85% |
| P/E Ratio | 63.13 | 42.83 | 147% |
| Revenue | 14B | 9.85B | 142% |
| Total Cash | 5.18B | 4.35B | 119% |
| Total Debt | 2.43B | 3.81B | 64% |
NOW | WDAY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 87 | 75 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 79 Overvalued | 69 Overvalued | |
PROFIT vs RISK RATING 1..100 | 91 | 100 | |
SMR RATING 1..100 | 54 | 69 | |
PRICE GROWTH RATING 1..100 | 61 | 61 | |
P/E GROWTH RATING 1..100 | 95 | 98 | |
SEASONALITY SCORE 1..100 | n/a | n/a |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WDAY's Valuation (69) in the Information Technology Services industry is in the same range as NOW (79). This means that WDAY’s stock grew similarly to NOW’s over the last 12 months.
NOW's Profit vs Risk Rating (91) in the Information Technology Services industry is in the same range as WDAY (100). This means that NOW’s stock grew similarly to WDAY’s over the last 12 months.
NOW's SMR Rating (54) in the Information Technology Services industry is in the same range as WDAY (69). This means that NOW’s stock grew similarly to WDAY’s over the last 12 months.
NOW's Price Growth Rating (61) in the Information Technology Services industry is in the same range as WDAY (61). This means that NOW’s stock grew similarly to WDAY’s over the last 12 months.
NOW's P/E Growth Rating (95) in the Information Technology Services industry is in the same range as WDAY (98). This means that NOW’s stock grew similarly to WDAY’s over the last 12 months.
| NOW | WDAY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 69% | 1 day ago 74% |
| Stochastic ODDS (%) | 1 day ago 72% | 1 day ago 78% |
| Momentum ODDS (%) | 1 day ago 67% | 1 day ago 60% |
| MACD ODDS (%) | 1 day ago 63% | 1 day ago 68% |
| TrendWeek ODDS (%) | 1 day ago 69% | 1 day ago 70% |
| TrendMonth ODDS (%) | 1 day ago 63% | 1 day ago 61% |
| Advances ODDS (%) | 11 days ago 70% | 11 days ago 55% |
| Declines ODDS (%) | 1 day ago 68% | 1 day ago 70% |
| BollingerBands ODDS (%) | 1 day ago 62% | 1 day ago 74% |
| Aroon ODDS (%) | 1 day ago 72% | 1 day ago 67% |
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