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NOW vs WDAY
Which Stock Would AI Choose? ServiceNow (NOW) vs. Workday (WDAY) Stock Comparison
Key Takeaways
- NOW has posted stronger recent price momentum, while WDAY has lagged the broader enterprise-software rebound.
- ServiceNow is growing subscription revenue roughly twice as fast as Workday, with AI annual contract value recently crossing $1 billion.
- Workday is in the earlier stages of monetizing AI, with AI-driven annual recurring revenue (ARR) of about $600 million and an active analyst-day narrative.
- Analyst sentiment is more uniformly bullish on NOW (consensus "Strong Buy") than on WDAY (consensus "Buy" with a growing number of Hold ratings).
- Both companies remain heavily exposed to enterprise technology budgets, but their valuation multiples and growth profiles differ materially.
Introduction
Enterprise software remains one of the most closely watched corners of the technology market, and two of its most prominent names are NOW (ServiceNow) and WDAY (Workday). Both sell cloud-based, subscription-driven platforms to large organizations, and both are racing to embed artificial intelligence into their products. Yet their recent relative performance, growth rates, and market positioning have diverged. This stock comparison is relevant to investors and traders seeking to understand how two large-cap software franchises stack up on momentum, valuation, and catalysts. By examining recent market activity, sentiment shifts, and observable fundamentals, readers can form a clearer view of each company's current standing.
NOW Overview and Recent Performance
ServiceNow (NOW) provides a cloud platform that automates and orchestrates enterprise workflows across IT, customer service, human resources, and operations. Its subscription-heavy model produces high renewal rates and recurring revenue. In recent market activity, NOW has been among the stronger performers in enterprise software, rallying sharply over a three-month span as investors rotated back into application software and AI names. Subscription revenue has grown in the mid-20% range on a percentage basis, and management recently reported that AI annual contract value crossed the $1 billion mark, reflecting rising adoption of its AI-native products. Several analysts have raised price targets in recent weeks, citing AI adoption and enterprise demand, though the stock's forward valuation has also expanded as it has climbed.
WDAY Overview and Recent Performance
Workday (WDAY) delivers cloud-based applications for human capital management, financial management, and business planning. Like ServiceNow, it relies on multi-year subscription contracts, but its revenue is growing at a more moderate pace, in the low-to-mid teens on a percentage basis. Recent market activity has been mixed: the stock underperformed the broader technology sector over the past month even as it participated in a broader enterprise-software rebound following its investor day. Management disclosed that AI-related offerings now contribute to more than half of new customer ARR and that agentic AI ARR has roughly tripled year over year. Still, analyst sentiment has been more divided, with one major firm downgrading the shares in recent weeks while others maintained Buy ratings, reflecting uncertainty around the timing of AI-driven reacceleration.
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Head-to-Head Comparison
The clearest contrast between the two is growth and momentum. ServiceNow's subscription revenue growth in the mid-20% range outpaces Workday's low-teens pace, and NOW has translated that into meaningfully stronger recent price performance. Workday, by contrast, trades at a lower forward earnings multiple and offers a valuation profile that some investors view as a potential margin of safety, though its AI monetization is less mature.
Their business models differ in focus: ServiceNow is positioned broadly as a workflow automation and, increasingly, an AI "control tower" across departments, while Workday is anchored in human capital management and finance, where competition from AI-native tools raises questions about seat-based pricing. Risk profiles also differ. NOW carries a higher valuation that leaves less room for error, while WDAY faces a decelerating backlog and mixed analyst conviction. Sector exposure is similar, with both tied closely to enterprise IT budgets, but market sentiment has favored ServiceNow's faster, more visible AI traction.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor NOW in the current environment. The stock demonstrates more consistent trend strength, stronger recent momentum, higher revenue growth, and clearer AI-related catalysts, all of which algorithmic models tend to reward. That said, the assessment is probabilistic rather than definitive: NOW's elevated valuation introduces drawdown risk, while WDAY's lower multiple and improving AI disclosures could support a relative catch-up if its growth reaccelerates. The AI verdict reflects current positioning and momentum, not a guaranteed outcome, and conditions can shift as new earnings data and sentiment signals emerge.
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.
To 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 Hold.
NOW sees MACD Histogram just turned negative
NOW saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 29, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 54 instances where the indicator turned negative. In 42 of the 54 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 78%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 29, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on NOW as a result. In 64 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
NOW moved below its 50-day moving average on October 29, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for NOW crossed bearishly below the 50-day moving average on November 03, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 13 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 72%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NOW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.84% 3-day Advance, the price is estimated to grow further. Considering data from situations where NOW advanced for three days, in 238 of 336 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
NOW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 140 of 216 cases where NOW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 65%.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating fairly steady price growth. NOW’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 88 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.757) is normal, around the industry mean (-1.902). P/E Ratio (65.845) is within average values for comparable stocks, (15.583). Projected Growth (PEG Ratio) (0.947) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.072) among similar stocks. P/S Ratio (9.891) is also within normal values, averaging (70.854).
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NOW’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Momentum Indicator for WDAY turns positive, indicating new upward trend
WDAY saw its Momentum Indicator move above the 0 level on October 30, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In 62 of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
WDAY moved above its 50-day moving average on October 19, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WDAY crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 62%.
Following a +1.37% 3-day Advance, the price is estimated to grow further. Considering data from situations where WDAY advanced for three days, in 170 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 105 of 167 cases where WDAY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 63%.
Bearish Trend Analysis
The 10-day RSI Indicator for WDAY moved out of overbought territory on October 26, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In 27 of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at 69%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 44 of 58 cases where WDAY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for WDAY turned negative on October 30, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In 30 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WDAY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
WDAY broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. WDAY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.384) is normal, around the industry mean (-1.902). P/E Ratio (40.232) is within average values for comparable stocks, (15.583). Projected Growth (PEG Ratio) (0.689) is also within normal values, averaging (2.824). Dividend Yield (0.000) settles around the average of (0.072) among similar stocks. P/S Ratio (4.773) is also within normal values, averaging (70.854).
The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. WDAY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
NOW | WDAY | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 75 | 21 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 82 Overvalued | |
PROFIT vs RISK RATING 1..100 | 100 | 100 | |
SMR RATING 1..100 | 59 | 54 | |
PRICE GROWTH RATING 1..100 | 63 | 40 | |
P/E GROWTH RATING 1..100 | 85 | 94 | |
SEASONALITY SCORE 1..100 | n/a | 75 |
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 (82) in the Information Technology Services industry is in the same range as NOW (88). This means that WDAY’s stock grew similarly to NOW’s over the last 12 months.
WDAY's Profit vs Risk Rating (100) in the Information Technology Services industry is in the same range as NOW (100). This means that WDAY’s stock grew similarly to NOW’s over the last 12 months.
WDAY's SMR Rating (54) in the Information Technology Services industry is in the same range as NOW (59). This means that WDAY’s stock grew similarly to NOW’s over the last 12 months.
WDAY's Price Growth Rating (40) in the Information Technology Services industry is in the same range as NOW (63). This means that WDAY’s stock grew similarly to NOW’s over the last 12 months.
NOW's P/E Growth Rating (85) in the Information Technology Services industry is in the same range as WDAY (94). This means that NOW’s stock grew similarly to WDAY’s over the last 12 months.
| NOW | WDAY | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 69% | 2 days ago 69% |
| Stochastic ODDS (%) | 1 day ago 79% | 2 days ago 76% |
| Momentum ODDS (%) | 1 day ago 71% | 2 days ago 70% |
| MACD ODDS (%) | 1 day ago 78% | 2 days ago 63% |
| TrendWeek ODDS (%) | 1 day ago 71% | 2 days ago 71% |
| TrendMonth ODDS (%) | 1 day ago 76% | 2 days ago 64% |
| Advances ODDS (%) | 1 day ago 71% | 2 days ago 57% |
| Declines ODDS (%) | 5 days ago 70% | 6 days ago 70% |
| BollingerBands ODDS (%) | 1 day ago 77% | 2 days ago 71% |
| Aroon ODDS (%) | 1 day ago 65% | 2 days ago 63% |
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 overvalued. 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 while WDAY’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 5 TA indicator(s) are bullish while WDAY’s TA Score has 5 bullish TA indicator(s).
- NOW’s TA Score: 5 bullish, 5 bearish.
- WDAY’s TA Score: 5 bullish, 5 bearish.
Price Growth
NOW (@Packaged Software) experienced а -29.47% price change this week, while WDAY (@Packaged Software) price change was -4.97% for the same time period.
The average weekly price growth across all stocks in the @Packaged Software industry was -1.57%. For the same industry, the average monthly price growth was -3.80%, and the average quarterly price growth was -3.15%.
Reported Earning Dates
NOW is expected to report earnings on Jan 27, 2027.
WDAY is expected to report earnings on Nov 24, 2026.
Industries' Descriptions
@Packaged Software (-1.57% 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.
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WDAY and
Correlation & Price change
A.I.dvisor indicates that over the last year, WDAY has been closely correlated with ADBE. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if WDAY jumps, then ADBE could also see price increases.
| Ticker / NAME | Correlation To WDAY | 1D Price Change % | ||
|---|---|---|---|---|
| WDAY | 100% | -0.10% | ||
| ADBE - WDAY | 75% Closely correlated | -2.12% | ||
| ASAN - WDAY | 75% Closely correlated | +0.81% | ||
| NOW - WDAY | 75% Closely correlated | +2.97% | ||
| FRSH - WDAY | 73% Closely correlated | -0.42% | ||
| INTU - WDAY | 72% Closely correlated | -2.10% | ||
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