Quick Read

  • CRM surged 22% and NOW climbed 25% after blowout quarters proved AI is expanding enterprise software platforms, not replacing them.

  • Salesforce’s Agentforce ARR surged 240% to $1.5B as ServiceNow’s AI ACV crossed $1B and agentic deployments grew ninefold in nine months.

  • Salesforce raised FY27 guidance but only $100M came from organic growth, and EPS was inflated by $2.53 from investment gains, clouding the reacceleration call.

  • Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Salesforce didn’t make the cut. Grab the names FREE today.

Salesforce (NYSE:CRM) and ServiceNow (NYSE:NOW) just torched the SaaSpocalypse thesis. Both reported blowout quarters and stocks ripped: CRM jumped 22.58% on earnings day, and NOW has climbed 25.14% over the last month. Investors feared AI would replace enterprise software. These results argue the opposite: AI is expanding the platforms, not eating them.

PeopleImages / iStock via Getty Images Agentforce Broke Out, AI Control Tower Went Standard

Salesforce delivered $11.35 billion in revenue, up 10.8% year-over-year, with subscription and support revenue of $10.82 billion, up 12%. The real story sits inside the AI stack. Agentforce ARR crossed $1.5 billion, growing over 240% year-over-year, and combined Agentforce plus Data 360 ARR reached nearly $3.9 billion. Marc Benioff was blunt on the call: “this nonsense of this SaaSpocalypse, I think it’s time for it to stop.”

ServiceNow’s Q2 was arguably louder. Revenue of $3.987 billion grew 24.01% year-over-year, ServiceNow AI ACV crossed $1.00 billion, and agentic deployments increased ninefold over nine months. Bill McDermott framed the platform as “one platform, one system of action, any cloud, any agent, any workflow, any model, governed, secured, and accountable.”

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Salesforce didn’t make the cut. Grab the names FREE today.

Driver

Salesforce

ServiceNow

Revenue growth

10.8%

24.01%

Flagship AI metric

Agentforce ARR $1.5B, +240%

ServiceNow AI ACV crossed $1B

Current RPO

$33.5B, +14%

$13.2B, +21%

System of Record vs. System of Action

Salesforce is doubling down on being the trusted data spine for every agent. Benioff introduced Headless 360 and ClaudeForce with Anthropic, described as “the number one AI meeting the number one CRM,” making Salesforce data accessible through Claude, ChatGPT, Slack, and Teams. Salesforce is returning capital aggressively: a $25 billion accelerated share repurchase cut the diluted share count meaningfully.

ServiceNow chose governance and cybersecurity. More than 500 customers are live on AI Control Tower, and McDermott wants to move ServiceNow from the number eight company in cybersecurity toward the top, backed by the Armis, Veza, and Moveworks acquisitions. One caveat: Q2 benefited from U.S. Federal on-premise revenue pulled forward from Q3.

Next Test Is Sustained Organic Growth

Salesforce raised FY27 revenue guidance to $46.10 billion to $46.40 billion, but only $100 million of the raise came from organic performance. I want to see Agentforce credit refills, currently 50% of bookings, keep compounding. For ServiceNow, the pivot to 50% of net new business already non-seat based matters because it undercuts the AI-kills-seats fear head on.

Why I Lean Toward ServiceNow, But Own the Case for Both

I find ServiceNow the sharper AI story right now. Growing 24% at nearly $16 billion in subscription revenue with an operating model targeting Rule of 60 is rare. If you want a defensive AI compounding platform with heavy buybacks and a cheaper multiple, Salesforce fits. The $5.90 EPS was inflated by $2.53 per share of strategic investment gains, so I want a cleaner quarter before calling the reacceleration real. Either way, the SaaSpocalypse thesis just took a serious hit.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Salesforce didn’t make the cut. Grab the names FREE today.

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