NOW vs WDAY

ServiceNow presents a bullish AI-forward narrative: positioning itself as an "AI control tower" and highlighting product momentum (Now Assist, Workflow Data Fabric, Raptor, CPQ, Build Agent) and strategic moves (acquisitions of Moveworks, intent to acquire Armis and Veza). The company announced multiple partner integrations (Anthropic/Claude, OpenAI, Microsoft Agent 365, Figma) to bring foundation/frontier models and agent orchestration into its platform and announced programs (Build Program, Now Next AI, ServiceNow Store) to accelerate partner-built AI agents. Financially, Q4 2025 total revenue was $3,568M (20.5% YoY), non-GAAP gross margin 80.5%, non-GAAP operating income $1,101M, GAAP net income $401M, and non-GAAP free cash flow $2,032M. Guidance includes Q1 2026 subscription revenue of $3,650–3,655M and full-year 2026 subscription revenue $15,530–15,570M, and management links AI product adoption (Now Assist, Moveworks) to near-term guidance and long-term market opportunity.

Workday positions itself as an "enterprise AI platform" and is actively shipping and monetizing AI capabilities: Sana Core and Sana Enterprise reached GA; Paradox Conversational ATS is available through Workday for conversational recruiting; Workday acquired Pipedream to provide integration for AI agents; and Workday launched an AI-powered Deployment Agent and a Workday EU Sovereign Cloud. Management emphasizes prioritized investment in an "agentic AI roadmap," delivered 1.7 billion AI actions in fiscal 2026, and expanded AI-related partnerships (Anthropic, Google BigQuery). Financially, fiscal 2026 total revenues were $9.552B (up 13.1% YoY), non-GAAP operating income was $2.824B, net income $693M, and free cash flow $2.777B. Guidance includes Q1 FY2027 subscription revenue of $2.335B and FY2027 subscription revenue of $9.925B–$9.950B; management also guided ~30% non-GAAP operating margin for FY2027 and reaffirmed investments in its agentic AI roadmap.