Better High-Growth Software Stock for 2026: Figma vs. ServiceNow
ServiceNow reported FY 2025 revenue of $13.3B, up 20.9%, with net income of $1.7B and a 13.2% net margin. It has a debt-to-equity ratio of 0.2x and generated $4.6B in free cash flow. Figma saw Q2 2026 revenue of $370.1M, up 48% YoY, but reported a net loss of $112.2M due to AI-related costs. ServiceNow's Q2 revenue was $4B, up 24% YoY, with net income of $298M. Both companies face competitive and regulatory risks.
How this was made
The 30-second read
Why it matters
ServiceNow's solid earnings and cash flow may attract value‑oriented investors, while the discussion of Figma's losses underscores the risk of high‑growth, unprofitable peers.
Market read
Provides a comparative assessment that may influence allocation decisions between growth‑oriented and profit‑focused software stocks.
What to watch
Potential regulatory scrutiny on ServiceNow's DOJ investigation could pose downside risk.
Background
The piece compares high‑growth private design platform Figma with established enterprise‑software leader ServiceNow, focusing on financial metrics and risk factors.
Ticker impact
ServiceNow FY 2025 revenue of $13.3B, 24% YoY Q2 revenue growth and $298M Q2 net income were disclosed.
modest upside pressure as investors price in continued profit growth
The article presents fresh FY and Q2 numbers that highlight robust margins and cash generation, likely supporting a modest price rise.
Market effects
Highlights competitive pressure on enterprise software peers but no direct impact on them.
U.S. enterprise software sector may see modest positive sentiment.
Limited; primarily relevant to investors in ServiceNow.
Counterpoint
Peers like Adobe and Salesforce could outpace ServiceNow if AI adoption accelerates faster than ServiceNow's integration.
Key entities
- companyServiceNow
U.S. listed enterprise‑software provider (ticker NOW).
