Why is ServiceNow considered better than Palantir?

ServiceNow has a more reasonable valuation and a diversified customer base, reducing risk compared to Palantir's high multiples.

How has ServiceNow stock performed recently?

The article does not specify recent performance but notes it is less volatile than Palantir.

Forget Palantir: ServiceNow Is a Smarter Enterprise Software Bet

While Palantir Technologies impresses with 133% US commercial revenue growth and a 145% Rule of 40 score, analysts suggest ServiceNow (NOW) is a more prudent investment due to its reasonable valuation and diversified enterprise software business.

June 23, 2026

2 min read

Source: 24/7 Wall St.

Key Numbers

palantir us commercial revenue growth

133%

palantir rule of 40 score

145%

As investors pile into Palantir Technologies (NASDAQ:PLTR) after another blowout earnings report—with US commercial revenue surging 133% year-over-year and CEO Alex Karp boasting a Rule of 40 score of 145%—some analysts argue that ServiceNow (NYSE:NOW) presents a more compelling investment opportunity.

Why ServiceNow Over Palantir?

Reasonable Valuation

While Palantir trades at elevated multiples that already price in several years of perfect execution, ServiceNow's valuation is more grounded, offering a better risk-reward profile.

Strong Rule of 40 Performance

ServiceNow also delivers impressive Rule of 40 metrics (revenue growth + profit margin), but without the hype that surrounds Palantir.

Diversification and Stability

ServiceNow serves a broad customer base across industries, reducing concentration risk compared to Palantir's heavy reliance on government contracts.

Conclusion

Although Palantir's growth is remarkable, long-term investors seeking sustainable value may find ServiceNow a more resilient and less speculative choice.

Frequently Asked Questions

The Rule of 40 is a performance metric that sums revenue growth and operating profit margin; a score above 40% is considered excellent.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.