Salesforce vs. ServiceNow: Here's What Revenue Trends Tell Investors About These Software Giants and Their Move to AI

Source The Motley Fool

Key Points

  • While Salesforce consistently generated higher total revenue over the last eight quarters, ServiceNow is expanding its top line at a faster rate year over year.

  • ServiceNow posted consistent quarter-over-quarter revenue gains without experiencing any seasonal drops, whereas Salesforce recorded a generally upward overall trajectory that featured occasional mild sequential declines.

  • Investors should monitor whether the absolute revenue gap currently separating the two companies remains constant over the long term, or if it begins to narrow in upcoming quarters.

  • Motley Fool Issues Rare "Total Conviction" Buy Alert ›

Salesforce: Experiencing a Gradual Upward Revenue Trend

Salesforce (NYSE:CRM) primarily earns revenue by providing cloud-based customer relationship management (CRM) software to enterprise clients worldwide.

During the third calendar quarter of 2026, it finalized the operational integration of technical personnel and software assets from its acquisition of Fin and executed a multiyear title sponsorship agreement with the International Chess Federation extending through 2028, while simultaneously navigating a widespread internal service disruption that temporarily stalled remote login requests across multiple global regions.

ServiceNow (NYSE:NOW) primarily generates revenue by offering cloud-based software tools that automate internal technology workflows for large organizations.

Between July and October 2026, it broadened its international geographic footprint by officially opening its very first physical corporate office location in Brazil and concurrently finalized a multiyear strategic collaboration agreement with TeamViewer to seamlessly integrate digital remote connectivity capabilities directly into its existing suite of workplace management systems.

Why Revenue Matters for Investors

Revenue serves as the primary metric for tracking overall paying customer demand. It reveals whether a corporation is successfully attracting customers and growing its overall business volume over time.

Salesforce vs. ServiceNow Revenue chart

Salesforce vs. ServiceNow Revenue over the last 8 quarters.

Quarterly Revenue for Salesforce and ServiceNow

Calendar quarterSalesforce RevenueServiceNow Revenue
Q3 2024$9.4 billion (quarter ended Oct. 31, 2024)$2.8 billion (quarter ended Sept. 30, 2024)
Q4 2024$10.0 billion (quarter ended Jan. 31, 2025)$3.0 billion (quarter ended Dec. 31, 2024)
Q1 2025$9.8 billion (quarter ended April 30, 2025)$3.1 billion (quarter ended March 31, 2025)
Q2 2025$10.2 billion (quarter ended July 31, 2025)$3.2 billion (quarter ended June 30, 2025)
Q3 2025$10.3 billion (quarter ended Oct. 31, 2025)$3.4 billion (quarter ended Sept. 30, 2025)
Q4 2025$11.2 billion (quarter ended Jan. 31, 2026)$3.6 billion (quarter ended Dec. 31, 2025)
Q1 2026$11.1 billion (quarter ended April 30, 2026)$3.8 billion (quarter ended March 31, 2026)
Q2 2026$11.3 billion (quarter ended July 31, 2026)$4.0 billion (quarter ended June 30, 2026)

Data source: Financial Modeling Prep. Data as of Oct. 13, 2026.

Foolish Take

The revenue trends between Salesforce and ServiceNow show both are enjoying consistent year-over-year sales growth. This is in stark contrast to the Saaspocalypse both experienced earlier this year, when Wall Street became concerned these software-as-a-service (SaaS) stocks would be hurt by the rise of artificial intelligence, leading to a sell-off in their shares.

Instead, their revenue trajectories show these SaaS giants continue to maintain their customer base. Now, they are increasingly integrating AI into their respective platforms, further reinforcing the stickiness of their offerings.

ServiceNow's sales trend suggests it is achieving stronger success. Its second-quarter revenue of $4 billion represented excellent 24% year-over-year growth. As the more mature organization, Salesforce's fiscal Q2 sales rose 11% over the prior year.

However, the CRM titan's AI-related offerings, Agentforce and Data 360, saw Q2 annual recurring revenue reach nearly $3.9 billion, an outstanding 210% year-over-year increase. Not to be outdone, ServiceNow's AI agentic deployments rose ninefold in nine months, demonstrating that customers are embracing the new AI functionality.

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Robert Izquierdo has positions in Salesforce and ServiceNow. The Motley Fool has positions in and recommends Salesforce and ServiceNow. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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