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Autodesk vs. ServiceNow: Which Software Stock Has Stronger Growth?
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Key Takeaways
Autodesk's cloud transition and AI tools are driving recurring revenues and stronger stock performance.
ServiceNow posted 22% subscription revenue growth as AI workflow adoption boosted demand.
ADSK trades at a lower forward P/E than NOW, offering a more balanced risk-reward profile.
Autodesk Inc. (ADSK - Free Report) and ServiceNow Inc. (NOW - Free Report) are two leading cloud-based enterprise software companies helping businesses improve productivity and streamline operations. Autodesk is best known for its design and engineering software used across architecture, construction and manufacturing industries, while ServiceNow provides workflow automation and IT service management solutions for enterprises worldwide. Investors often compare them as high-margin SaaS leaders with expanding AI capabilities.
Both companies are benefiting from the growing adoption of artificial intelligence and digital transformation initiatives. Their subscription-based business models generate recurring revenues and strong cash flows, making them attractive long-term software investments.
ADSK and NOW are worth comparing as investors look for resilient growth stocks with expanding AI capabilities, strong enterprise demand and the potential to capitalize on rising cloud software spending in an evolving technology landscape. Let's dig in and find which stock offers the stronger investment case now.
The Case for ADSK Stock
Autodesk is accelerating its transformation into a cloud- and AI-driven software platform company, positioning itself at the center of digital transformation across the architecture, engineering, construction, manufacturing and media industries. The company has “successfully executed one of the most far-reaching transformations in enterprise software,” supported by cloud-based platforms, AI-powered workflow automation and subscription-driven business models. It is rolling out advanced AI capabilities built on frontier and proprietary models designed specifically for 3D design and engineering workflows, strengthening automation, productivity and customer value creation.
Autodesk’s SaaS and subscription ecosystem remains a major strength. Products such as BIM Collaborate Pro, Tandem, Fusion and Flow Production Tracking are cloud-based solutions that enable connected workflows, collaboration and lifecycle management. The company highlighted that subscription offerings combine desktop software with cloud functionality, creating flexible and collaborative workflows for enterprise and project-based customers. Autodesk is also investing heavily in AI, machine learning and generative design technologies to enhance automation and sustainability outcomes.
Autodesk’s subscription-driven business model continues to strengthen its long-term financial visibility and resilience. The company generates most of its revenues through recurring subscription offerings, including term-based product subscriptions, cloud services and enterprise business agreements (EBAs). In fourth-quarter fiscal 2026, subscription revenues increased 19.5% year over year, driven by growth in subscriptions from the existing customer base. The strength of Autodesk’s recurring revenue base is evident in its expanding remaining performance obligations (RPO), which increased 20% year over year, while current RPO rose 23%.
However, Autodesk acknowledged challenges related to competition, AI disruption risks, sales restructuring and integration costs tied to strategic acquisitions and investments. Still, its long-term investments in cloud, AI and platform-driven business models create significant future monetization opportunities.
The Zacks Consensus Estimate for ADSK’s fiscal 2027 earnings is currently pegged at $12.38 per share, stable over the past 30 days and implying 18.7% year-over-year growth.
Image Source: Zacks Investment Research
The Case for NOW Stock
ServiceNow continues to strengthen its position as a leading AI-driven enterprise SaaS company through aggressive innovation, digital transformation initiatives and strategic acquisitions. The company’s cloud-based ServiceNow AI Platform helps enterprises govern, secure and streamline AI-powered workflows across IT, CRM, HR, finance and industry operations through a unified data and workflow architecture. Its AI-native strategy includes Autonomous Workforce, EmployeeWorks, Context Engine and workflow data fabric capabilities, enabling enterprises to automate processes and integrate AI securely across systems.
NOW’s SaaS subscription model remains a major strength, generating $3.67 billion in the first quarter of 2026 subscription revenues, up 22% year over year, while remaining performance obligations reached $27.7 billion, reflecting strong long-term demand visibility. Growing adoption of Now Assist and AI-driven CRM solutions demonstrates expanding monetization opportunities in enterprise AI transformation.
ServiceNow is also expanding its total addressable market through acquisitions such as Armis and Veza, which enhance cybersecurity, identity governance and AI control capabilities.
However, challenges remain, including intense competition in enterprise software, macroeconomic uncertainty, integration risks from acquisitions, foreign exchange fluctuations and rising AI investment costs. These uncertainties could affect enterprise IT budgets and slow digital transformation spending.
The Zacks Consensus Estimate for NOW’s 2026 earnings is pegged at $4.14 per share, remaining unchanged over the past 30 days, indicating a 17.95% increase over 2025’s reported figure.
Image Source: Zacks Investment Research
ADSK vs. NOW: Price Performance & Valuation
Although both stocks have been under pressure year to date, ADSK has performed better, dropping 17.7% compared with NOW’s steeper 32.5% decline. ADSK’s relatively stronger performance reflects investor confidence in its AI initiatives, successful cloud transition and stable subscription-based revenue growth. Meanwhile, NOW’s weaker stock performance appears to reflect investor concerns over rising competition in the enterprise AI market, higher spending on AI infrastructure and broader macroeconomic uncertainty that could slow enterprise software spending.
YTD Stock Performance
Image Source: Zacks Investment Research
Both Autodesk and ServiceNow shares are currently overvalued, as suggested by a Value Score of C and D, respectively. However, Autodesk trades at a lower forward 12-month P/E multiple of 18.96X compared with ServiceNow’s 23.15X, suggesting that investors perceive ADSK’s earnings growth as relatively more stable and less risky.
ADSK vs. NOW Valuation
Image Source: Zacks Investment Research
Conclusion
Overall, Autodesk seems to be the stronger option for investment at current levels. The company’s successful cloud transformation, expanding AI-driven product portfolio, resilient subscription-based revenue model and relatively lower valuation provide a more balanced risk-reward profile. In contrast, ServiceNow faces higher valuation pressure and greater concerns surrounding competitive intensity and rising AI-related spending. While both companies remain attractive SaaS leaders, Autodesk currently provides a better balance of growth potential, operational stability and valuation support for investors.
View the Zacks #1 Rank List
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Autodesk vs. ServiceNow: Which Software Stock Has Stronger Growth?
Key Takeaways
Autodesk Inc. (ADSK - Free Report) and ServiceNow Inc. (NOW - Free Report) are two leading cloud-based enterprise software companies helping businesses improve productivity and streamline operations. Autodesk is best known for its design and engineering software used across architecture, construction and manufacturing industries, while ServiceNow provides workflow automation and IT service management solutions for enterprises worldwide. Investors often compare them as high-margin SaaS leaders with expanding AI capabilities.
Both companies are benefiting from the growing adoption of artificial intelligence and digital transformation initiatives. Their subscription-based business models generate recurring revenues and strong cash flows, making them attractive long-term software investments.
ADSK and NOW are worth comparing as investors look for resilient growth stocks with expanding AI capabilities, strong enterprise demand and the potential to capitalize on rising cloud software spending in an evolving technology landscape. Let's dig in and find which stock offers the stronger investment case now.
The Case for ADSK Stock
Autodesk is accelerating its transformation into a cloud- and AI-driven software platform company, positioning itself at the center of digital transformation across the architecture, engineering, construction, manufacturing and media industries. The company has “successfully executed one of the most far-reaching transformations in enterprise software,” supported by cloud-based platforms, AI-powered workflow automation and subscription-driven business models. It is rolling out advanced AI capabilities built on frontier and proprietary models designed specifically for 3D design and engineering workflows, strengthening automation, productivity and customer value creation.
Autodesk’s SaaS and subscription ecosystem remains a major strength. Products such as BIM Collaborate Pro, Tandem, Fusion and Flow Production Tracking are cloud-based solutions that enable connected workflows, collaboration and lifecycle management. The company highlighted that subscription offerings combine desktop software with cloud functionality, creating flexible and collaborative workflows for enterprise and project-based customers. Autodesk is also investing heavily in AI, machine learning and generative design technologies to enhance automation and sustainability outcomes.
Autodesk’s subscription-driven business model continues to strengthen its long-term financial visibility and resilience. The company generates most of its revenues through recurring subscription offerings, including term-based product subscriptions, cloud services and enterprise business agreements (EBAs). In fourth-quarter fiscal 2026, subscription revenues increased 19.5% year over year, driven by growth in subscriptions from the existing customer base. The strength of Autodesk’s recurring revenue base is evident in its expanding remaining performance obligations (RPO), which increased 20% year over year, while current RPO rose 23%.
However, Autodesk acknowledged challenges related to competition, AI disruption risks, sales restructuring and integration costs tied to strategic acquisitions and investments. Still, its long-term investments in cloud, AI and platform-driven business models create significant future monetization opportunities.
The Zacks Consensus Estimate for ADSK’s fiscal 2027 earnings is currently pegged at $12.38 per share, stable over the past 30 days and implying 18.7% year-over-year growth.
Image Source: Zacks Investment Research
The Case for NOW Stock
ServiceNow continues to strengthen its position as a leading AI-driven enterprise SaaS company through aggressive innovation, digital transformation initiatives and strategic acquisitions. The company’s cloud-based ServiceNow AI Platform helps enterprises govern, secure and streamline AI-powered workflows across IT, CRM, HR, finance and industry operations through a unified data and workflow architecture. Its AI-native strategy includes Autonomous Workforce, EmployeeWorks, Context Engine and workflow data fabric capabilities, enabling enterprises to automate processes and integrate AI securely across systems.
NOW’s SaaS subscription model remains a major strength, generating $3.67 billion in the first quarter of 2026 subscription revenues, up 22% year over year, while remaining performance obligations reached $27.7 billion, reflecting strong long-term demand visibility. Growing adoption of Now Assist and AI-driven CRM solutions demonstrates expanding monetization opportunities in enterprise AI transformation.
ServiceNow is also expanding its total addressable market through acquisitions such as Armis and Veza, which enhance cybersecurity, identity governance and AI control capabilities.
However, challenges remain, including intense competition in enterprise software, macroeconomic uncertainty, integration risks from acquisitions, foreign exchange fluctuations and rising AI investment costs. These uncertainties could affect enterprise IT budgets and slow digital transformation spending.
The Zacks Consensus Estimate for NOW’s 2026 earnings is pegged at $4.14 per share, remaining unchanged over the past 30 days, indicating a 17.95% increase over 2025’s reported figure.
Image Source: Zacks Investment Research
ADSK vs. NOW: Price Performance & Valuation
Although both stocks have been under pressure year to date, ADSK has performed better, dropping 17.7% compared with NOW’s steeper 32.5% decline. ADSK’s relatively stronger performance reflects investor confidence in its AI initiatives, successful cloud transition and stable subscription-based revenue growth. Meanwhile, NOW’s weaker stock performance appears to reflect investor concerns over rising competition in the enterprise AI market, higher spending on AI infrastructure and broader macroeconomic uncertainty that could slow enterprise software spending.
YTD Stock Performance
Image Source: Zacks Investment Research
Both Autodesk and ServiceNow shares are currently overvalued, as suggested by a Value Score of C and D, respectively. However, Autodesk trades at a lower forward 12-month P/E multiple of 18.96X compared with ServiceNow’s 23.15X, suggesting that investors perceive ADSK’s earnings growth as relatively more stable and less risky.
ADSK vs. NOW Valuation
Image Source: Zacks Investment Research
Conclusion
Overall, Autodesk seems to be the stronger option for investment at current levels. The company’s successful cloud transformation, expanding AI-driven product portfolio, resilient subscription-based revenue model and relatively lower valuation provide a more balanced risk-reward profile. In contrast, ServiceNow faces higher valuation pressure and greater concerns surrounding competitive intensity and rising AI-related spending. While both companies remain attractive SaaS leaders, Autodesk currently provides a better balance of growth potential, operational stability and valuation support for investors.
Autodesk and ServiceNow currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.