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GitLab vs. ServiceNow: Which Enterprise Software Stock Has an Edge?
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Key Takeaways
ServiceNow shows stronger large-deal momentum with 244 $1M ACV deals in Q4 2025, up nearly 40% YoY.
GitLab grew customers with $100K ARR 23% YoY in fiscal Q3 2026, signaling enterprise traction.
ServiceNow expanded its AI push via the Anthropic deal and new Autonomous Workforce offerings.
GitLab (GTLB - Free Report) and ServiceNow (NOW - Free Report) are major players in the enterprise software and workflow automation space. While GitLab streamlines software development workflows through DevOps automation, ServiceNow specializes in IT service management and enterprise workflow automation, enabling organizations to streamline operations across departments.
Per the Fortune Business Insight report, the global workflow automation market size was valued at $25.10 billion in 2025. It is projected to grow from $27.91 billion in 2026 to $65.26 billion by 2034. This shows a CAGR of 11.20% during the forecast period between 2026 and 2034. Both GitLab and ServiceNow are expected to benefit from this rapid growth pace.
GitLab or NOW — Which of these Enterprise Software stocks has the greater upside potential? Let’s find out.
The Case for GTLB Stock
GitLab is benefiting from strong demand for its DevSecOps platform. Its solutions, such as GitLab Ultimate, Dedicated, and GitLab Duo, play a significant role in driving customer adoption and expanding existing customer relationships.
Gitlab’s expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the third quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,475, up 10% year over year. Customers with more than $100K of ARR increased to 1,405, up 23% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. The company’s ability to scale within existing accounts while attracting new large customers underscores its potential for sustained top-line expansion.
Gitlab’s expanding portfolio has been noteworthy. One of the major drivers of GitLab’s growth is its focus on integrating AI capabilities into its platform. The introduction of the GitLab Duo Agent platform has been noteworthy.
In January 2026, GitLab announced the general availability of the GitLab Duo Agent Platform, introducing agentic AI orchestration across the entire DevSecOps lifecycle to address the AI productivity paradox with intelligent agents, automated flows, deep project context and enterprise-grade governance across all GitLab deployment models.
The Case for NOW Stock
ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. A strong and frequently updated portfolio is helping ServiceNow win customers on a regular basis.
Exiting the fourth quarter of 2025, ServiceNow had 244 transactions of more than $1 million in net new annual contract value (ACV), representing nearly 40% year-over-year growth. ServiceNow ended the reported quarter with 603 customers with more than $5 million in ACV, representing approximately 20% year-over-year growth.
The company’s expanding portfolio has been noteworthy. In January 2026, ServiceNow announced a collaboration with Anthropic to embed Claude as the default AI model across core ServiceNow workflows, powering agentic app development, accelerating customer deployments and boosting internal productivity with governed, enterprise-grade AI.
Further expanding its portfolio, ServiceNow recently launched Autonomous Workforce and EmployeeWorks. These new offerings combine Moveworks’ conversational AI with its unified and governed workflow platform. This allows AI specialists to autonomously handle enterprise jobs end-to-end with speed, security, and auditability.
Price Performance and Valuation of GTLB and NOW
In the trailing 12-month period, GitLab and ServiceNow shares have plunged 53.7% and 43.4%. The underperformance of GitLab can be attributed to challenging macroeconomic uncertainties and increased competition in the AI-enabled DevSecOps platform.
The outperformance in NOW can be attributed to its robust AI portfolio and strong partner base. However, the company’s shares have declined due to challenges from the U.S. government shutdown and temporary gross margin headwinds due to data center investments and a shift to hyperscaler offerings.
GTLB and NOW Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, GTLB and NOW shares are currently overvalued as suggested by a Value Score of F and D, respectively.
In terms of the forward 12-month Price/Sales, GitLab shares are trading at 4.13X, which is lower than NOW’s 6.96X.
GTLB and NOW's Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for GTLB & NOW?
The Zacks Consensus Estimate for GTLB’s fiscal 2026 earnings is pegged at 89 cents per share, unchanged over the past 30 days, indicating a 20.27% rise year over year.
The Zacks Consensus Estimate for NOW’s 2025 earnings is pegged at $4.13 per share, which has declined 2.22% over the past 30 days, indicating a 17.66% increase year over year.
While both GitLab and NOW stand to benefit from the growing enterprise software and workflow automation space, ServiceNow stands out due to its broader enterprise footprint, stronger large-deal momentum, and deeper AI integrations across mission-critical workflows.
GitLab’s strong growth, AI-powered DevSecOps platform, and solid partnerships position it as a leader in the DevOps space. However, GitLab is experiencing headwinds from U.S. public sector softness due to slower decision-making caused by the government shutdown and ongoing challenges in the SMB segment. Stiff competition also remains a concern.
Currently, ServiceNow carries a Zacks Rank #3 (Hold), making the stock a stronger pick than GitLab, which has a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
GitLab vs. ServiceNow: Which Enterprise Software Stock Has an Edge?
Key Takeaways
GitLab (GTLB - Free Report) and ServiceNow (NOW - Free Report) are major players in the enterprise software and workflow automation space. While GitLab streamlines software development workflows through DevOps automation, ServiceNow specializes in IT service management and enterprise workflow automation, enabling organizations to streamline operations across departments.
Per the Fortune Business Insight report, the global workflow automation market size was valued at $25.10 billion in 2025. It is projected to grow from $27.91 billion in 2026 to $65.26 billion by 2034. This shows a CAGR of 11.20% during the forecast period between 2026 and 2034. Both GitLab and ServiceNow are expected to benefit from this rapid growth pace.
GitLab or NOW — Which of these Enterprise Software stocks has the greater upside potential? Let’s find out.
The Case for GTLB Stock
GitLab is benefiting from strong demand for its DevSecOps platform. Its solutions, such as GitLab Ultimate, Dedicated, and GitLab Duo, play a significant role in driving customer adoption and expanding existing customer relationships.
Gitlab’s expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the third quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,475, up 10% year over year. Customers with more than $100K of ARR increased to 1,405, up 23% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers. The company’s ability to scale within existing accounts while attracting new large customers underscores its potential for sustained top-line expansion.
Gitlab’s expanding portfolio has been noteworthy. One of the major drivers of GitLab’s growth is its focus on integrating AI capabilities into its platform. The introduction of the GitLab Duo Agent platform has been noteworthy.
In January 2026, GitLab announced the general availability of the GitLab Duo Agent Platform, introducing agentic AI orchestration across the entire DevSecOps lifecycle to address the AI productivity paradox with intelligent agents, automated flows, deep project context and enterprise-grade governance across all GitLab deployment models.
The Case for NOW Stock
ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. A strong and frequently updated portfolio is helping ServiceNow win customers on a regular basis.
Exiting the fourth quarter of 2025, ServiceNow had 244 transactions of more than $1 million in net new annual contract value (ACV), representing nearly 40% year-over-year growth. ServiceNow ended the reported quarter with 603 customers with more than $5 million in ACV, representing approximately 20% year-over-year growth.
The company’s expanding portfolio has been noteworthy. In January 2026, ServiceNow announced a collaboration with Anthropic to embed Claude as the default AI model across core ServiceNow workflows, powering agentic app development, accelerating customer deployments and boosting internal productivity with governed, enterprise-grade AI.
Further expanding its portfolio, ServiceNow recently launched Autonomous Workforce and EmployeeWorks. These new offerings combine Moveworks’ conversational AI with its unified and governed workflow platform. This allows AI specialists to autonomously handle enterprise jobs end-to-end with speed, security, and auditability.
Price Performance and Valuation of GTLB and NOW
In the trailing 12-month period, GitLab and ServiceNow shares have plunged 53.7% and 43.4%. The underperformance of GitLab can be attributed to challenging macroeconomic uncertainties and increased competition in the AI-enabled DevSecOps platform.
The outperformance in NOW can be attributed to its robust AI portfolio and strong partner base. However, the company’s shares have declined due to challenges from the U.S. government shutdown and temporary gross margin headwinds due to data center investments and a shift to hyperscaler offerings.
GTLB and NOW Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, GTLB and NOW shares are currently overvalued as suggested by a Value Score of F and D, respectively.
In terms of the forward 12-month Price/Sales, GitLab shares are trading at 4.13X, which is lower than NOW’s 6.96X.
GTLB and NOW's Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for GTLB & NOW?
The Zacks Consensus Estimate for GTLB’s fiscal 2026 earnings is pegged at 89 cents per share, unchanged over the past 30 days, indicating a 20.27% rise year over year.
GitLab Inc. Price and Consensus
GitLab Inc. price-consensus-chart | GitLab Inc. Quote
The Zacks Consensus Estimate for NOW’s 2025 earnings is pegged at $4.13 per share, which has declined 2.22% over the past 30 days, indicating a 17.66% increase year over year.
ServiceNow, Inc. Price and Consensus
ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote
Conclusion
While both GitLab and NOW stand to benefit from the growing enterprise software and workflow automation space, ServiceNow stands out due to its broader enterprise footprint, stronger large-deal momentum, and deeper AI integrations across mission-critical workflows.
GitLab’s strong growth, AI-powered DevSecOps platform, and solid partnerships position it as a leader in the DevOps space. However, GitLab is experiencing headwinds from U.S. public sector softness due to slower decision-making caused by the government shutdown and ongoing challenges in the SMB segment. Stiff competition also remains a concern.
Currently, ServiceNow carries a Zacks Rank #3 (Hold), making the stock a stronger pick than GitLab, which has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.