ServiceNow vs. UiPath: Consistent Revenue Growth vs. Volatile Seasonal Trends
Key Points
ServiceNow currently demonstrates substantially stronger revenue generation across the past eight quarters, maintaining a clear lead over UiPath in total top-line revenue volume.
ServiceNow consistently produced steady quarter-over-quarter revenue growth without any sequential declines over the last two years, while UiPath displayed a more volatile quarter-over-quarter trajectory characterized by distinct seasonal spikes and subsequent pullbacks.
Investors should watch whether the revenue gap between the two companies continues to steadily widen in upcoming quarters or if the disparity eventually stabilizes over time.
ServiceNow: Sustaining Consistent Sequential Revenue Growth
ServiceNow (NYSE:NOW) primarily generates revenue by selling and supporting enterprise software subscriptions built on a unified central system that helps large, complex organizations continuously streamline, digitize, and automate their internal administrative and technical business workflows across multiple departments.
It recently launched an automated conversational service desk product and expanded a strategic software integration partnership with Alphabet-owned Google Cloud. It also issued a critical security advisory for newly-discovered software vulnerabilities and announced a broader restructuring effort that included the permanent layoff of 424 employees in California.
UiPath: Seasonal and Cyclical Quarterly Revenue Patterns
UiPath (NYSE:PATH) primarily generates revenue by providing an integrated enterprise software ecosystem and ongoing technical support services that enable global organizations to effectively design, deploy, and actively manage automated robotic processes across their various internal daily digital administrative operations.
It recently introduced a new developer orchestration tool and expanded a major software integration agreement with Snowflake, while simultaneously experiencing several localized software service disruptions to its core document processing systems during the month of October.
Why Revenue Matters for Investors
Revenue helps investors understand the total amount of money a business brings in before deducting any operational expenses. It serves as a baseline indicator of total customer demand and overall business volume.
ServiceNow vs. UiPath Revenue over the last 8 quarters.
Quarterly Revenue Trends for ServiceNow and UiPath
| Calendar quarter | ServiceNow Revenue | UiPath Revenue |
|---|---|---|
| Q4 2024 | $3.0 billion (quarter ended Dec. 31, 2024) | $423.6 million (quarter ended Jan. 31, 2025) |
| Q1 2025 | $3.1 billion (quarter ended March 31, 2025) | $356.6 million (quarter ended April 30, 2025) |
| Q2 2025 | $3.2 billion (quarter ended June 30, 2025) | $361.7 million (quarter ended July 31, 2025) |
| Q3 2025 | $3.4 billion (quarter ended Sept. 30, 2025) | $411.1 million (quarter ended Oct. 31, 2025) |
| Q4 2025 | $3.6 billion (quarter ended Dec. 31, 2025) | $481.1 million (quarter ended Jan. 31, 2026) |
| Q1 2026 | $3.8 billion (quarter ended March 31, 2026) | $418.4 million (quarter ended April 30, 2026) |
| Q2 2026 | $4.0 billion (quarter ended June 30, 2026) | $410.3 million (quarter ended July 31, 2026) |
| Q3 2026 | $4.1 billion (quarter ended Sept. 30, 2026) | Not yet reported |
Data source: Financial Modeling Prep. Data as of Nov. 1, 2026.
Foolish Take
Both ServiceNow and UiPath are striving to capitalize on the artificial intelligence boom. The former's consistent quarter-over-quarter sales increases demonstrates it is succeeding. UiPath shows a more typical year-over-year revenue growth trend, and expects its fiscal third quarter will continue that trajectory with forecasted sales between $440 million and $445 million.
ServiceNow's quarterly revenue growth cadence illustrates its pricing power and the key role its software platform plays for its customers. The company reinforced that in its third quarter earnings report, where it announced current remaining performance obligations (contract revenue that will be recognized as revenue in the next 12 months) was $13.7 billion, a strong 20.5% year-over-year jump. This reveals ServiceNow's business remains resilient despite an volatile macroeconomic environment.
UiPath's revenue trend shows a modest sales growth trajectory amid the AI spending frenzy. Its fiscal Q2 revenue of $410.3 million represented a 13% year-over-year increase compared to 17% in Q1 and 14% in Q4. Its revenue tends to spike around the end of the calendar year, when businesses are looking to spend their remaining IT budgets, adding to some of its quarterly volatility.
Robert Izquierdo has positions in Alphabet, ServiceNow, Snowflake, and UiPath. The Motley Fool has positions in and recommends Alphabet, ServiceNow, Snowflake, and UiPath. The Motley Fool has a disclosure policy.