ServiceNow, Inc. provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools. It also provides asset management, cloud observability, integrated risk management; information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; strategic portfolio management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT asset management; and security operations that connects with internal and third party. In addition, the company offers integrated risk management product to manage risk and resilience; environmental, social and governance management product; human resources, legal, and workplace service delivery products; customer service management product; and field service management applications. Further, the company provides app engine product; automation engine; platform privacy and security product; and source-to-pay operations. It serves to government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

ServiceNow, Inc. демонстрирует значительное превосходство по ряду ключевых метрик, таких как ROE, ROA и валовая маржа, что указывает на высокую эффективность компании по сравнению с отраслевыми стандартами. Однако, мультипликаторы P/E и P/S значительно превышают медианные значения, что может указывать на потенциальную переоцененность акций. Показатель текущей ликвидности ниже медианы, что создает определенные риски в финансовом положении компании. Несмотря на это, рост выручки и чистой прибыли на протяжении последних лет, а также низкий уровень долговой нагрузки говорят о стабильности и перспективности бизнеса. Важно отметить, что отсутствие дивидендов может быть воспринято как минус для некоторых инвесторов, однако это также говорит о том, что компания реинвестирует средства для дальнейшего роста. Общая картина указывает на высокие риски, но и на значительный потенциал для роста, обоснованный сильными финансовыми показателями и позицией в индустрии.

ServiceNow, Inc.

Key Points
Alphabet has a massive AI tailwind and a potential gold mine with Waymo.
Nvidia should remain the dominant player in AI chips for years to come.
ServiceNow could be on track to become a $1 trillion company.
An old investing saying might be especially relevant amid the current uncertainty: "Stocks climb a wall of worry." We could see this adage proven correct over the coming months.
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1. Alphabet
I know that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is officially classified in the communication services sector rather than the technology sector and even ranks as the largest communication services company by market cap. Let's be real, though: Alphabet is, at its core, a tech stock. And it's one of the best on the market.
To paraphrase Mark Twain, rumors of Google Search's death have been greatly exaggerated. Predictions that generative AI would be a Google killer have fallen flat. Instead, Google Search is thriving, in part because of its integration with genAI.
AI, in general, is providing a massive tailwind for Alphabet. The company's Google Cloud unit is growing rapidly. Its Google Gemini ranks among the top large language models. Google is developing its own AI chips that are growing in popularity with external customers. It's also well-positioned to be a major player in the lucrative AI-powered smart glasses market.
I also think Alphabet has a potential gold mine in Waymo. The self-driving car technology business is the leader in the fast-growing autonomous ride-hailing service market. Don't be surprised if Waymo becomes a significant growth driver for Alphabet over the next few years.
2. Nvidia
Speaking of gold mines, Nvidia (NASDAQ: NVDA) is the most important picks-and-shovels stock in the modern-day AI gold rush. The AI boom we're witnessing wouldn't be happening without Nvidia's GPUs.
Sure, other companies (including, as previously discussed, Alphabet) are making AI chips to compete against Nvidia. However, with Nvidia's rapid pace of innovation, I don't foresee the company being knocked off its perch anytime soon.
Nvidia's forthcoming Rubin GPU platform provided a great example of its continual innovation. The company plans to begin shipping its first Vera Rubin chips, which combine its Vera CPUs with Rubin GPUs, in the second half of this year, hot on the heels of its overwhelmingly successful Blackwell chips. While the Vera Rubin technology uses twice the power of Blackwell, it delivers 10x the performance. That's a positive trade-off that many customers will love.
In the past, valuation was a top concern with Nvidia. But the company has delivered such tremendous growth that its stock looks reasonably priced now, trading at 23 times forward earnings.
3. ServiceNow
One of the biggest AI stories of 2026 so far is the sell-off of SaaS stocks, dubbed the "SaaSpocalypse." ServiceNow (NYSE: NOW) is one of many software stocks swept up in the mayhem. However, the pullback makes ServiceNow even more attractive for long-term investors, in my opinion.
The premise of the "SaaSpocalypse" is that organizations will be able to use AI to develop their own software rather than rely on SaaS platforms. While I don't doubt some software companies will see their business models disrupted as this happens, I don't think ServiceNow will be one of them.
ServiceNow's platform uses AI to automate organizations' workflows. Over 8,800 customers worldwide use the company's technology, including over 85% of the Fortune 500. CEO Bill McDermott stated in the January quarterly update, "ServiceNow has the fastest organic growth in the history of enterprise software."
That growth continues. ServiceNow's revenue jumped 20.5% year over year in the fourth quarter of 2025. Its remaining performance obligations (unrecognized future revenue from non-cancelable contracts) soared 26.5% year over year to $28.2 billion.
ServiceNow's current market cap is around $120 billion. McDermott believes that ServiceNow is "a $1 trillion company in the making." I think he could be right.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Tech Stocks to Invest $50,000 in Right Now

UiPath PATH closed fiscal 2026 with a better-than-expected fiscal fourth quarter, a stronger profitability profile and another step up in capital return. At the same time, investors are still weighing what comes next as automation budgets normalize and platform transitions reshape near-term mix.
Taken together, the latest quarter supports a market-perform setup, but the path to a decisive “add” case still runs through clearer retention and monetization signals.
PATH Q4 Results Beat Expectations
UiPath reported a fiscal fourth-quarter beat on both earnings per share and revenues versus consensus. Revenues came in at $481.1 million, up 13.6% year over year, marking a strong finish against management’s guidance ranges.
The tone of the quarter matters as much as the numbers. The results suggest execution has stabilized and that the company is landing growth while leaning harder into cost discipline.
UiPath, Inc. Revenue (TTM)
UiPath Profitability Builds With Discipline
The quarter highlighted a margin structure that is increasingly built for scale. UiPath delivered a non-GAAP gross margin of 86% in the fourth quarter of fiscal 2026, reflecting a software model that can support product investment and operating leverage at the same time.
Non-GAAP operating income reached $150 million, translating to a 31% operating margin. The broader takeaway is that profitability momentum is building without “starving” growth investments. That balance is important for a platform company that still needs to expand use cases, deepen partner motion and push new capabilities into production.
PATH Cash, No Debt, and Buyback Capacity
UiPath ended the quarter with about $1.7 billion in cash, cash equivalents, and marketable securities and carried no debt. That balance sheet flexibility matters in a market that is rewarding durable free cash flow and penalizing funding risk.
Capital returns are now a central part of the story. The company completed a $1 billion repurchase program and approved an additional $500 million in buyback capacity. In practical terms, this gives management room to offset dilution and support per-share metrics while it continues to execute on the operating model.
UiPath FY27 Outlook and Margin Targets
Management’s fiscal 2027 framework points to steady growth and meaningful cash generation. Revenues are guided to $1.754 billion to $1.759 billion, with annual recurring revenue guided to $2.051 billion to $2.056 billion.
Profitability and cash flow are expected to remain strong. UiPath guided to non-GAAP operating income of about $415 million, non-GAAP gross margin around 84%, and adjusted free cash flow around $425 million. The company also updated its long-term non-GAAP operating margin target to 30% and outlined a path toward meaningful GAAP profitability by fiscal 2027. For investors, that combination sets a higher bar for consistency, not just occasional upside quarters.
PATH Valuation vs Peers and Market
The valuation setup is a key reason the stock sits in a “hold versus add” debate. Shares are down 31.9% over the past three months and down 3.7% over the past year, leaving the stock trading at 15.44x forward earnings. That multiple is below the sub-industry, sector, and S&P 500 comparisons provided in the valuation snapshot.
The same tension shows up in relative price-to-sales and price-to-book comparisons. The market is acknowledging improved margins and buyback support, but it is also discounting uncertainty around the durability of expansion and the timing of the next acceleration phase. In that context, it is useful to remember that platform peers like Microsoft MSFT and ServiceNow NOW are also pushing deeper into enterprise automation. Their breadth and distribution can influence competitive cycles, even when UiPath’s product depth remains a differentiator.
UiPath Outlook Suggests Market-Perform Potential
The current framing remains Neutral, which implies expectations for in-line performance rather than a clear re-rating catalyst. That stance ties back to several uncertainties that are still in focus.
Agentic monetization and pricing predictability are not yet fully proven. Net retention has moderated, with dollar-based net retention at 107% in the third and fourth quarters of fiscal 2026. Foreign exchange remains a variable, and federal demand continues to be dynamic, impacting visibility and timing. Put together, these factors can limit upside follow-through even after a clean quarterly beat.
PATH Checklist Before Adding Shares
Investors looking to move from “hold” to “add” should watch for sustained annual recurring revenue expansion as fiscal 2027 unfolds, particularly evidence that net new annual recurring revenue remains resilient quarter to quarter.
It also matters whether lower-end cohort pressure stabilizes. Improving expansion is most powerful when it is broad-based, not just concentrated in the largest accounts.
Finally, keep the focus on conversion mechanics and monetization clarity. Signs that pilots compress to production, including through vertical accelerators and hyperscaler alliances, would support confidence in the deployment engine. In parallel, any movement toward clearer consumption or outcome-based pricing for agentic capabilities would help investors model upside with more precision, which is often what unlocks a higher multiple.
Zacks Rank
UiPath, ServiceNow, and Microsoft carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is PATH Stock a Hold After Q4 Beat, Buybacks, and Margin Gains?

Enterprise automation budgets are shifting from point tools to platforms. Buyers want governance, reuse, and faster time to value across UI, API and document-heavy work. UiPath PATH is leaning into that consolidation trend with a unified automation stack and an expanding roadmap that supports both deterministic automation and emerging agentic workflows.
The near-term story is not just new features. It is also steadier execution, stronger pilots that convert, and renewals that hold up as customers standardize on fewer, more governed platforms.
PATH’s Unified Platform Shift
Large enterprises are consolidating toward governed, end-to-end automation platforms because automation is no longer a side project. It touches compliance, security, auditability and cross-team reuse. A unified platform reduces operational sprawl by centralizing policy, identity, monitoring, and change control across automations that run in production.
That consolidation preference also aligns with management’s commentary around stronger pilots and renewals and improved execution stability. When pilots are designed on a governed platform from day one, the path to production is clearer. And when renewals are anchored to platform standards, switching costs rise and churn risk falls.
UiPath, Inc. Net Income (TTM)
UiPath Stack: Robots, IXP and Maestro
The “broader stack” thesis is straightforward: enterprises want one platform that can automate front-end user actions, back-end APIs, and document workflows without stitching together multiple vendors and brittle integrations. UiPath’s platform components highlighted here map directly to that goal.
Robots handle deterministic execution. Intelligent Extraction & Processing (IXP) targets document understanding and data capture. Maestro brings orchestration and case management to coordinate work across people, bots and systems. Together, those components can reduce fragmentation across UI automation, API workflows, and document pipelines by keeping design, governance, and operations in one place.
PATH Agentic Features as Adoption Catalysts
Agentic capabilities are showing up first as an adoption catalyst rather than an immediate revenue accelerator. The near-term dynamic is pull-through: agentic features can make the platform feel more “complete,” improve pilot outcomes, and expand the set of use cases teams try early.
Even if those capabilities are not expected to materially lift revenues in the near term, they can still matter. Better pilots can convert into broader deployments, and broader deployments tend to increase platform attach across modules. That attach effect is how a unified platform compounds, even when the newest features are initially bundled or lightly monetized.
UiPath Enterprise Footprint and ARR Mix
UiPath’s traction in larger accounts shows up in ARR and customer-scale signals. ARR rose to $1.853 billion in the fourth quarter of fiscal 2026, with $70 million of net new ARR in the quarter. Customer cohorts above $100,000 and $1 million in ARR are growing, reinforcing the idea that expansion is being driven by larger, more standardized enterprise deployments.
The revenue mix is also shifting. Subscription services are growing while licenses are pressured by the transition to Flex Offerings. That transition can mute near-term license optics, but it also aligns packaging with platform consumption and can support broader module adoption over time.
PATH Roadmap That Cuts Time to Value
Several explicitly named roadmap items point to a focus on shortening pilot-to-production timelines. Maestro (orchestration and case management) supports real operational workflows, not just task automation. API Workflows reaching general availability expands addressable use cases into integration-led automation, where reliability and governance are critical.
Intelligent Extraction & Processing with Autopilot aims to reduce effort in document workflows, while ScreenPlay targets complex UI automation where traditional approaches can be fragile. Paired with vertical accelerators, these roadmap elements broaden use cases and reduce build time, which can translate into faster conversions from initial pilots to scaled deployments.
UiPath Risks: Retention, FX, and Federal Demand
The upside case is constrained by several visible headwinds. Dollar-based net retention has moderated to 107% in the third and fourth quarters of fiscal 2026, and pressure in the lower-end cohort suggests expansion is not uniform across the base.
Foreign exchange variability adds noise to reported results, and a still-dynamic federal sector can impact visibility and deal timing. Together, these factors can keep near-term outcomes uneven even when the platform narrative is strengthening.
PATH Takeaways for Long-Term Investors
For long-term investors, the most important signals of durable, platform-led expansion are enterprise ARR scaling, net new ARR generation, and growth in larger customer cohorts. A roadmap that spans robots, document intelligence, orchestration, and API-led workflows also supports a wider set of production deployments, which is where platform standardization tends to stick.
For a clearer multiple re-rating, the path likely runs through sharper agentic monetization and pricing, steadier retention trends, and less variability from foreign exchange and public-sector timing. If those elements improve while the unified platform continues to consolidate workloads, UiPath’s ARR growth profile can look increasingly platform-driven rather than feature-driven.
Competitive Landscape
As demand for automation platforms grows, UiPath operates in a competitive market alongside major enterprise software providers.
ServiceNow NOW offers enterprise workflow software that enables organizations to manage digital operations across departments. ServiceNow continues expanding its automation capabilities by integrating AI-driven features into its platform.
ServiceNow’s enterprise footprint and workflow expertise position ServiceNow as an important competitor in the broader automation and digital operations market.
Microsoft MSFT is another significant player in automation through its Power Platform and AI-powered cloud services. Microsoft provides low-code automation tools that allow businesses to automate processes across applications and data systems.
Microsoft benefits from a vast enterprise ecosystem, enabling Microsoft to integrate automation capabilities across its cloud and productivity platforms.
Zacks Rank
UiPath, ServiceNow, and Microsoft carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UiPath and Unified Automation: What's Driving ARR Growth

UiPath PATH ended its fiscal year on a strong note, reporting results that exceeded the upper end of its guidance across major financial metrics. The quarter reflected continued demand for automation software as enterprises accelerate digital transformation initiatives.
Fiscal fourth-quarter revenues reached $481 million, representing 14% year-over-year growth. For the full fiscal year, revenues climbed to $1.611 billion, increasing 13% from the prior year. Annual recurring revenues also expanded, reaching $1.853 billion in the fourth quarter, with $70 million in net new ARR added during the period.
A major highlight from the year was the company achieving full-year GAAP profitability for the first time. This milestone reflects significant progress in balancing growth investments with operational discipline while scaling the business.
Image Source: PATH
Profitability, ARR, and Cash Flow Show Improving Financial Strength
UiPath’s profitability metrics improved notably during the quarter. Non-GAAP operating income reached $150 million in the fiscal fourth quarter, translating to a 31% operating margin. For the full year, non-GAAP operating income totaled $370 million with a margin of 23%. GAAP net income reached $104 million for the quarter, while full-year GAAP net income totaled $282 million. The company also generated strong cash flows, producing $182 million in adjusted free cash flow in the fiscal fourth quarter and $372 million for the fiscal year.
ARR trends show steady demand across periods. ARR rose from $1.78 billion in the third quarter of fiscal 2026 to $1.85 billion in the fourth quarter of fiscal 2026, with year-over-year ARR growth running about 11%. Net new ARR was $70 million in the fourth quarter of fiscal 2026, and the first-quarter fiscal 2027 ARR guide implies roughly $1.894-$1.899 million. Customer scale is increasing: customers with more than $100k ARR and more than $1 million ARR grew year over year as of the fourth quarter of fiscal 2026 versus the third quarter of fiscal 2025. These factors indicate a sticky enterprise base that underpins durable, compounding expansions.
Image Source: PATH
UiPath ended the quarter with approximately $1.7 billion in cash, cash equivalents and marketable securities, while maintaining a debt-free balance sheet. During the quarter, the company completed a $1 billion share repurchase program and approved an additional $500 million in buyback capacity.
AI and Automation Strategy Driving Enterprise Adoption
Management emphasized that the convergence of artificial intelligence and automation is reshaping enterprise software development. The company believes the industry is approaching a turning point in how applications are built and managed.
UiPath’s strategy focuses on leveraging its unified automation platform, large installed customer base and long-standing enterprise relationships. These factors provide a foundation for expanding AI-powered automation across corporate workflows.
The company highlighted several customer deployments demonstrating the value of its platform. One semiconductor firm implemented agentic workflows within a very short time frame, while another enterprise dramatically reduced a multi-day order-to-cash process to just minutes while targeting substantial cost savings.
UiPath is also advancing AI-driven coding capabilities designed to automatically generate and maintain production-ready automation processes. These innovations could significantly shorten development timelines and accelerate adoption across enterprises.
Updated Outlook Signals Continued Growth
Management provided guidance for fiscal year 2027 that points to continued expansion across key financial metrics. The company expects revenues in the range of $1.754 billion to $1.759 billion and annual recurring revenue between $2.051 billion and $2.056 billion.
Non-GAAP operating income is projected to reach approximately $415 million for the fiscal year. Management also expects non-GAAP gross margin to remain strong at around 84% and anticipates adjusted free cash flow of roughly $425 million.
Additionally, the company updated its long-term non-GAAP operating margin target to 30%, reflecting increased confidence in the scalability and efficiency of its operating model. Leadership also expects the business to become GAAP profitable meaningfully by fiscal 2027, with continued expansion in profitability over time.
Competitive Landscape
As demand for automation platforms grows, UiPath operates in a competitive market alongside major enterprise software providers.
ServiceNow NOW offers enterprise workflow software that enables organizations to manage digital operations across departments. ServiceNow continues expanding its automation capabilities by integrating AI-driven features into its platform.
ServiceNow’s enterprise footprint and workflow expertise position ServiceNow as an important competitor in the broader automation and digital operations market.
Microsoft MSFT is another significant player in automation through its Power Platform and AI-powered cloud services. Microsoft provides low-code automation tools that allow businesses to automate processes across applications and data systems.
Microsoft benefits from a vast enterprise ecosystem, enabling Microsoft to integrate automation capabilities across its cloud and productivity platforms.
Risks Investors Should Watch
Despite strong results, several uncertainties remain for UiPath. Management noted that macroeconomic conditions remain uneven across industries and geographic regions, which could influence enterprise spending patterns.
Foreign exchange volatility also remains a factor, though the company expects its overall impact to remain minimal for the fiscal year. Analysts have also been closely examining the sustainability of ARR growth and the potential financial impact of recent acquisitions.
Competition from emerging AI-focused software vendors could also intensify as the automation market continues to expand.
UiPath Stock is a Hold
UiPath’s latest earnings report highlights the company gaining momentum as enterprise demand for automation and AI solutions grows. The achievement of full-year GAAP profitability, strong cash generation and rising recurring revenues reinforces the company’s improving financial profile. At the same time, competition within enterprise software remains intense, and investors continue to evaluate the sustainability of growth in the automation market. Considering these factors, maintaining a hold stance appears reasonable. Investors may benefit from monitoring continued ARR expansion, adoption of AI-driven automation tools, and progress toward higher margins before making a more decisive investment move.
PATH currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

PATH Delivers Strong Quarter to Close its Fiscal Year: Is PATH a Buy?

Key Points
Software stocks have fallen amid fears that the companies' businesses will be disrupted by generative AI tools and services.
Uncertainty about the outlook for the sector has led to earnings multiple compression.
The last 15 years have been mostly great for companies that develop cloud-based enterprise software solutions. Software companies generally benefited by transitioning from a perpetual license sales model to a subscription model. They were also able to simplify their software development because their programs would be running on remote servers rather than on local machines with a wide range of hardware and operating systems to support.
The market rewarded the improving results of many of these businesses, but not everyone was sold on the lofty valuations of software-as-a-service (SaaS) stocks.
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The value investors at Harris | Oakmark felt the market was overvaluing many stocks in the sector, particularly because it was paying too little heed to the impact of stock-based compensation, which is prevalent at SaaS companies. The market also has a tendency to expect SaaS companies' revenue growth rates to be linear, ignoring the potential impacts of normal competition, argued analyst Jeremy G. Thames.
But the market is starting to consider the possibility that new rivals will seriously eat into the sales of many established enterprise SaaS companies. The potential for generative artificial intelligence (AI) tools to replace existing solutions has driven down stock prices across the industry. In fact, prices have gotten so low that Harris | Oakmark now sees some buying opportunities.
Two big reasons the market is overreacting
The massive sell-off in software stocks over the last few months was due to the perceived threat of generative AI. Tools like Claude Code from Anthropic are enabling people without any background in software engineering to create custom applications. Anthropic extended the Claude Code agent to general workplace productivity tasks with the introduction of Claude Cowork earlier this year, posing a direct threat to several established companies. Furthermore, some see LLMs' ability to facilitate natural language interactions with software as lowering the learning curve for software and reducing switching costs.
But Thames asserts that the fear that AI will completely disrupt the business models of many software companies doesn't reflect how the industry or large enterprises operate. He lays out two clear arguments as to why the AI threat could be overblown.
The first is that vibe-coded custom software is unlikely to replace established enterprise software suites offered by giants like Salesforce (NYSE: CRM) or SAP (NYSE: SAP). The reason businesses use those products isn't that they have unique features or better user interfaces.
"Executives choose established players because they are industry-standard products," Thames writes. That status brings with it a level of reliability, support services, a community of users to ask questions of and to help develop solutions, and a broad ecosystem of software and services that work with it.
In other words, you get more than just the software when you use Salesforce, SAP, or any other widely used program. That makes the switching costs high and provides intangible benefits unmatchable by new start-ups or custom vibe-coded solutions.
Second, Thames argues that the implementation of large language models in the workforce may ultimately benefit incumbent software providers.
"The utility of any AI tool is ultimately limited by the depth and quality of the data it can access and manipulate," he said. "We believe incumbent enterprise software companies have a distinct advantage here."
Indeed, Salesforce is building its Agentforce service on the back of its Data Cloud, which collects and stores enterprise data. Meanwhile, it has decades of user-generated data that it can draw from. That supports Thames' belief that "as AI becomes a critical component of the modern enterprise, it will rely heavily on the structured, trusted data and workflows that are encoded within these core systems." As a result, AI may actually make incumbent software solutions even more valuable for businesses.
How you can take advantage of the SaaS sell-off
Not every software company will be immune to the challenges posed by artificial intelligence, and not all will be able to take advantage of the opportunities the technology offers. But the indiscriminate sell-off in software stocks has created several great opportunities for investors.
The Harris | Oakmark memo calls out both Salesforce and SAP. Both companies are entrenched in their customers' operations, as they have long used the land-and-expand strategy to increase the value their customers provide to them over time.
SAP continues to transition to the cloud and posted current cloud backlog growth of 25% last year. However, that wasn't quite enough to stave off the fears that AI will displace its products. Management said the number would've been higher, but it was negatively impacted by long-term deals that have larger ramp-ups in their later years.
Salesforce is effectively using AI to increase the value of its entire ecosystem. Its Agentforce platform enables customers to create AI agents that effectively use its software. Agentforce sales increased 169% year over year last quarter to $800 million.
Other great opportunities in the software space include Microsoft (NASDAQ: MSFT) and ServiceNow (NYSE: NOW). Revenues from Microsoft's enterprise software segment, which includes its Microsoft 365 suite and Dynamics 365, are still growing at percentage rates in the high-teens. That growth has been propelled by the integration of its Copilot AI feature, which now has 15 million paid subscribers. With over 400 million total Microsoft 365 users, it still has a lot more room to grow.
ServiceNow was quick to adopt generative AI features in its software suite. It's seeing strong momentum from Now Assist; its annual contract value reached $600 million at the end of 2025 and is on track to reach $1 billion by the end of 2026. The company is positioning its AI Control Tower platform as the center for any enterprise's agentic AI strategy, allowing them to integrate first- and third-party AI agents across its software.
After these stocks' declines of the last few months, they all present compelling buying opportunities. Their forward P/E ratios range from 15 (Salesforce) to 29 (ServiceNow) and accurately reflect each company's growth potential while accounting for the risks posed by AI. Importantly, all of these companies have shown the ability to adapt to AI and build moats around their businesses.
Should you buy stock in Salesforce right now?
Before you buy stock in Salesforce, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,735!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,140,464!*
Now, it’s worth noting Stock Advisor’s total average return is 946% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Adam Levy has positions in Microsoft and Salesforce. The Motley Fool has positions in and recommends Microsoft, Salesforce, and ServiceNow. The Motley Fool recommends SAP. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Longtime SaaS Bear Now Sees Value in the Beaten-Down Software Sector -- Here's What They Say Investors Are Getting Wrong

UiPath’s PATH advantage in the current automation race lies in how effectively its platform converts AI innovation into consistent enterprise efficiency. The company is moving beyond traditional rule-based automation toward agentic AI, in which software agents interpret user intent, coordinate multiple tasks and adjust actions within defined guardrails. This evolution is significant because it shifts automation from a simple cost-reduction tool to a foundational workflow infrastructure.
The key benefit is operating leverage. When AI agents coordinate processes across different systems, organizations can rely on a single orchestration layer rather than assembling multiple disconnected tools. UiPath’s orchestration-first strategy reduces operational friction, encourages deeper platform adoption and expands automation use cases within existing customer environments. As organizations standardize on the platform, relationships become stickier, and the company gains a clearer path to margin expansion without relying heavily on aggressive new-customer acquisition.
Another important factor supporting this strategy is governance. Enterprises increasingly seek AI-driven automation that offers autonomy while maintaining control. UiPath positions its agentic AI as accountable, transparent and auditable, addressing a critical requirement for regulated industries where oversight is essential. By balancing innovation with governance, UiPath helps organizations move faster in adopting AI-driven automation while maintaining operational discipline.
As business processes evolve from rigid rules toward adaptive reasoning, the value of UiPath’s platform compounds. Each additional AI agent enhances the broader system’s capabilities, strengthening the platform’s role as a coordination hub for enterprise operations.
In essence, UiPath’s opportunity goes beyond simply participating in the AI trend. The company is focused on monetizing orchestration at scale. Agentic AI positions automation as an operating system for work itself, and occupying that system-level role could support durable outperformance as enterprises prioritize efficiency, resilience and operational control.
Peers in Context
ServiceNow NOW approaches automation primarily through workflow unification. Because ServiceNow often functions as the system of record for many enterprises, it can embed AI capabilities across multiple departments. However, its model typically emphasizes top-down workflow design, whereas UiPath concentrates more on bottom-up process execution. While ServiceNow’s platform reach is powerful, the depth of its automation often depends on broader platform adoption rather than specialized process intelligence.
Pegasystems PEGA focuses heavily on decisioning and case management. Its strengths lie in environments where rules, data and customer context intersect, which has made it particularly relevant in regulated industries. However, Pegasystems tends to emphasize decision orchestration, while UiPath extends further into task execution across multiple systems. As a result, Pegasystems may generate insights quickly, but UiPath often completes the automation loop by directly executing processes across enterprise platforms.
PATH’s Price Performance, Valuation and Estimates
The stock has declined 23% in the past three months compared to the industry’s 10% loss.
Image Source: Zacks Investment Research
From a valuation standpoint, PATH trades at a forward price-to-earnings ratio of 16.11, which is well below the industry average of 28.21. It carries a Value Score of D.
The Zacks Consensus Estimate for PATH’s fiscal 2026 earnings has stayed unchanged over the past 30 days.
Image Source: Zacks Investment Research
PATH currently sports a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

UiPath's AI Automation Model is Driving Platform-Level Efficiency

Key Points
Adobe’s shares have plummeted by 38% over the past year due to concerns about competition from AI.
ServiceNow expects continued growth this year, yet the stock is trading 50% off its highs.
Netflix has captured less than half of its addressable market, but the stock is down 26% from its highs.
Businesses with a long history of consistent growth through subscription-based models never appear cheap. These businesses are highly valued by investors because customers pay recurring revenue to access their services throughout the year.
However, the market is offering investors the opportunity to buy top tech stocks at a discount right now. If you're looking to invest $1,000 right now, here's why you might consider scooping up shares of Adobe (NASDAQ: ADBE), ServiceNow (NYSE: NOW), and Netflix (NASDAQ: NFLX).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. Adobe
Adobe has been the dominant software provider for creative and advertising professionals for many years. But the stock has sold off on fears that artificial intelligence (AI) will make it easier to create software tools that replace its offering. Why spend money on a subscription for Adobe when users can create and edit images using Google's Gemini? The stock is down 38% over the past year, and is currently trading at a forward price-to-earnings (P/E) ratio of 12.
Wall Street is pricing Adobe like it's going out of business, but the company's performance tells a different story. Adobe continued to report growing demand for its products last quarter. In fact, it is sitting on over $22 billion of remaining performance obligations (RPO), up 13% year over year. Management credited its growth last year to "strong global demand" for its AI solutions across enterprise and consumer.
Most importantly, RPO grew faster than revenue, which grew 10% year over year last quarter. This shows that Adobe is seeing bigger deals. It suggests that enterprise customers are responding positively to Adobe's new AI capabilities in its products, like Acrobat AI Assistant and GenStudio.
Adobe's subscription-based business generates steady revenue and robust cash flows. Still, investors should probably wait until after the company's earnings report on March 12, just to make sure there are no negative surprises. If revenue and RPO growth remain on trend with previous quarters, it would suggest the stock is undervalued and worth starting a small position in.
2. ServiceNow
The rise of AI agents is also weighing on ServiceNow's shares, the workflow automation leader. The stock is down 50% from its previous peak, yet management is still guiding for around 20% year-over-year revenue growth for the current fiscal year.
ServiceNow helps companies automate tasks such as IT help desk tickets and onboarding new employees. But where it adds value is acting as the control layer of AI. It creates a data trail to monitor and put guardrails around what the AI is doing. These capabilities add tremendous value to companies that are using AI in their workflows.
Demand is not weakening but remaining strong. ServiceNow's revenue grew at a compound annual rate of 22% over the last three years, and it just posted 21% year-over-year growth in subscription revenue in the recent quarter. Renewal rates were 98% -- consistent with historical trends.
Management's guidance for subscription revenue growth of approximately 20% in 2026 suggests the stock's sell-off might be overdone. Its current forward P/E of 30 is well below the 54 average over the past three years.
3. Netflix
Netflix has delivered excellent returns over the past decade. There is still significant growth runway, yet the stock is trading 26% off its recent highs, offering an attractive entry point for a starter position.
The stock rebounded recently on news that management was walking away from its Warner Bros acquisition offer. This shows a disciplined management team that won't chase growth at any price. At the recent Morgan Stanley Technology, Media, and Telecommunications Conference, CFO Spence Neumann said, "This was an opportunity that was nice to have at the right price, not a must-have at any price."
Netflix is walking away because it doesn't need to acquire growth. While most streaming subscribers believe there are too many options, according to research from The Motley Fool, Netflix is one they are not giving up. The company's revenue grew 17% year over year in the fourth quarter, and its trailing 12-month free cash flow climbed to $9.4 billion.
The opportunity is still significant. Netflix has captured less than 50% of the estimated 800 million connected households worldwide. The stock's forward P/E of 31 may not look cheap, but it is a great value for a subscription-based business with 325 million customers. It's expected to grow earnings at an annualized rate of 22% over the next several years, according to the Wall Street consensus.
Should you buy stock in Adobe right now?
Before you buy stock in Adobe, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Adobe wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 12, 2026.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Alphabet, Netflix, ServiceNow, and Warner Bros. Discovery. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Have $1,000? These 3 Stocks Could Be Bargain Buys for 2026 and Beyond

The threat of AI has sent software stocks crashing across the board. However, I believe it is way overdone in a couple of high quality names.
In today's video, I will be covering 4 software stocks that I believe are worthy of a buy and the threat of AI is way over the top, as it relates to their business. One of those stocks I recently purchased, which was ServiceNow (NYSE: NOW).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of March 1, 2026. The video was published on March 3, 2026.
Should you buy stock in ServiceNow right now?
Before you buy stock in ServiceNow, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServiceNow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 11, 2026.
Mark Roussin, CPA has positions in Microsoft and ServiceNow. The Motley Fool has positions in and recommends Datadog, Microsoft, ServiceNow, and Toast. The Motley Fool has a disclosure policy.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Software Stocks Are Crashing, Here Are 4 Stocks to Buy

The markets have been volatile for what seems like most of 2026, but it has been for different reasons. Some concerned about valuations, others concerned about rates, some AI concerns, and now the latest has to do with Geopolitical tensions. Regardless, this has created buying opportunities for a multitude of stocks.
In today's video I will highlight 3 stocks that I believe are great buys, with one of them being the AI King in Nvidia (NASDAQ: NVDA). Do not sleep on the ecosystem this company is building.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Watch this short video to learn more, consider subscribing to the channel, and check out the special offer in the link below.
*Stock prices used were end-of-day prices of Feb. 9, 2026. The video was published on Feb. 10, 2026.
Should you buy stock in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $522,791!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,132,678!*
Now, it’s worth noting Stock Advisor’s total average return is 952% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 11, 2026.
Mark Roussin, CPA has positions in Amazon, Nvidia, and ServiceNow. The Motley Fool has positions in and recommends Amazon, Nvidia, and ServiceNow. The Motley Fool has a disclosure policy.
Mark Roussin is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Big Opportunity in These 3 Stocks

Key Points
ServiceNow should be able to deliver solid revenue growth despite "SaaSpocalypse" worries.
Microsoft's high capital expenditures aren't as concerning as some investors think.
Salesforce's valuation looks attractive after its steep sell-off.
"Buy low, sell high" is one of the most well-known investing adages. The main problem with following this four-word strategy, though, is knowing which low stocks are most likely to rise in the future.
Analysts with major investment firms are paid big bucks to identify those kinds of stocks. Here are three beaten-down tech stocks that could soar 40% or more, according to Wall Street.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
1. ServiceNow
ServiceNow (NYSE: NOW) provides an artificial intelligence platform that enables customers to automate workflows. The company calls itself "the AI control tower for business reinvention." Its global customer base includes over 85% of the Fortune 500.
However, ServiceNow has been one of the victims of the so-called "SaaSpocalypse," a major sell-off of SaaS stocks on worries that AI will render many SaaS products obsolete. The company's share price is now more than 50% below its peak set in early 2025.
Wall Street thinks ServiceNow can bounce back. The consensus 12-month price target reflects a potential upside of 62%. Of the 44 analysts surveyed by S&P Global (NYSE: SPGI) in March who cover ServiceNow, 40 rated the stock as a "buy" or "strong buy."
Is this optimism warranted? I think so. ServiceNow continues to deliver strong growth, with revenue jumping 20.5% year over year in the fourth quarter of 2025. Its renewal rate of 98% remains exceptionally high. CEO Bill McDermott stated in the Q4 update, "With our consistent Rule of 55+ profile, there is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow." He could be right.
2. Microsoft
Microsoft (NASDAQ: MSFT) ranks as the world's third-largest technology company by market cap. The tech giant is a leader in cloud services, productivity software, operating systems, gaming systems, quantum computing, and more.
After flying high in 2023, 2024, and much of 2025, Microsoft's stock momentum stalled in the fourth quarter of last year. The company's slowing growth in cloud services and increased AI-related capital expenditures raised concerns among many investors.
Is Wall Street worried about Microsoft? Nope. The average 12-month price target for Microsoft is roughly 46% higher than its current share price. Fifty-four of the 57 analysts recently surveyed by S&P Global rated the stock as a "buy" or better.
I suspect most analysts recognize that Microsoft's capital expenditures aren't risky, since most of the capital the company is deploying is for GPUs that are already contracted for most of their useful life. Wall Street also knows that agentic AI presents a significant growth opportunity for Microsoft.
3. Salesforce
Salesforce (NYSE: CRM) pioneered cloud-based customer relationship management (CRM) systems in 1999. It's now the global CRM leader, a position the company has held for 12 consecutive years. Salesforce has also emerged as a top innovator in agentic AI with its Agentforce platform.
Like ServiceNow, Salesforce was hit hard by the "SaaSpocalypse." Its stock is down almost 50% from the record high achieved in late 2024 and has fallen roughly 27% so far this year.
Wall Street thinks the downturn will only be temporary. The consensus 12-month price target for Salesforce reflects an upside potential of around 42%. Of the 54 analysts surveyed by S&P Global in March, 41 rated the stock as a "buy" or "strong buy."
I think the numbers back up this optimistic outlook. Salesforce continues to deliver double-digit revenue growth. Management expects accelerating growth in the second half of the current fiscal year. Meanwhile, Salesforce's shares trade at only 15 times forward earnings.
The sell-off of this stock appears to be overdone, in my view. Although I'm not sure if Salesforce's stock will soar more than 40% over the next 12 months, I expect a solid rebound.
Should you buy stock in Salesforce right now?
Before you buy stock in Salesforce, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $530,233!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,119,682!*
Now, it’s worth noting Stock Advisor’s total average return is 955% — a market-crushing outperformance compared to 191% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 11, 2026.
Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft, S&P Global, Salesforce, and ServiceNow. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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