Salesforce leans on buybacks while ServiceNow pursues security acquisitions

EarningsIndustry
โดย 24/7 Wall St.·Read original
Summary · why it matters

Salesforce and ServiceNow are pursuing divergent capital strategies as they compete in enterprise AI. Salesforce posted $11.13 billion in Q1 FY27 revenue and saw Agentforce ARR surge 205% to $1.2 billion, but funded a $25 billion accelerated share repurchase by increasing noncurrent debt to $39.3 billion. ServiceNow closed FY25 with $3.568 billion in Q4 revenue and 22.5% cRPO growth, channeling capital into security acquisitions including Moveworks, Armis, and Veza. Salesforce guided FY27 revenue of $45.90 billion to $46.20 billion with cRPO up 14%, while ServiceNow guided FY26 subscription revenue of $15.53 to $15.57 billion. The analysis favors ServiceNow for the next 18 months due to accelerating growth and expanding margins, though its valuation remains steep.

Impact on stocks 3

Artificial Intelligence▲ · 3 stocks
Salesforce.com Inc
CRM
± MixedCapitalrelevance

Salesforce funded a $25B buyback by increasing debt, which may boost EPS but raises leverage; revenue and Agentforce ARR growth are positive, but guidance is mixed.

ServiceNow Inc
NOW
▲ PositiveCapitalrelevance

ServiceNow is favored for accelerating growth and expanding margins, with strong Q4 revenue and cRPO growth, though valuation is steep.

Theme Impact 3

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