ServiceNow vs. Figma: Which Enterprise Software Stock Leads Now?

ServiceNow (NOW) is demonstrating strong momentum with its AI-driven workflow solutions and strategic partnerships, forecasting Q3 subscription revenues of $3.26 billion, a 20% year-over-year increase. Conversely, Figma (FIG) is experiencing decelerating revenue growth, with Q3 projections of 33% year-over-year, down from 41% in Q2, and faces significant competitive pressure from rivals with more advanced AI capabilities. This disparity leads to ServiceNow holding a Zacks Rank #3 (Hold) versus Figma's Zacks Rank #4 (Sell), indicating a more favorable outlook for NOW despite both stocks being considered overvalued.

Analysis

ServiceNow (NOW) demonstrates strong fundamental performance and strategic positioning in the enterprise software sector, forecasting Q3 2025 subscription revenues of $3.26-$3.265 billion, indicating approximately 19.5% year-over-year growth. This growth is underpinned by its AI-driven Workflow Data Fabric, which is integral to 17 of its top 20 deals, and the new Zurich platform, enhancing AI adoption and security. Strategic partnerships with major tech firms like NVIDIA and Amazon further bolster its top-line growth prospects.

In contrast, Figma (FIG) is experiencing a deceleration in revenue growth, with Q3 2025 revenue guidance of $263-$265 million reflecting 33% year-over-year growth, down from 41% in Q2 2025. Despite launching four new products, Figma's AI initiatives are considered nascent and face significant competitive pressure from established players such as Adobe and Microsoft, which possess more advanced AI capabilities. This competitive landscape contributes to a less favorable outlook for FIG.

Both stocks are currently deemed overvalued with a Value Score of F. However, recent market performance highlights a stark difference, with NOW shares declining 4.7% in three months compared to FIG's substantial 56.4% drop. This divergence, combined with ServiceNow's robust AI portfolio and stronger partner base, results in a Zacks Rank #3 (Hold) for NOW, contrasting with Figma's Zacks Rank #4 (Sell).

Key Decisions for Investors

• Investors should consider ServiceNow (NOW) as a hold, given its strong AI-driven growth prospects and strategic partnerships, despite its current overvaluation.
• Exercise caution with Figma (FIG) due to decelerating revenue growth, nascent AI capabilities, and intense competition from larger, more established players, which is reflected in its Zacks Rank #4 (Sell).
• Monitor the competitive landscape in enterprise AI and design software, as the maturity of AI integration will likely be a key differentiator for future performance.