Agentic AI could lead to major breakthroughs in productivity and drive the next wave of growth for many companies. Grand View Research forecasts that the enterprise agentic AI market will maintain a 46.2% compound annual growth rate through 2030, reflecting the technology's vast potential.
Two companies are uniquely positioned to capitalize on this opportunity. UiPath (NYSE: PATH) and ServiceNow (NYSE: NOW) both have tools that let companies create and manage AI agents, and both have solid foundations of growing annual recurring revenues.
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While both companies have similar opportunities in front of them, if you want to choose just one of them to invest in, here are a few details to consider.
Annual recurring revenue is a critical metric for both companies. It indicates baseline growth and suggests how growth may change in the future.
ServiceNow is the larger company and is also growing faster. The company has $12.64 billion in current remaining performance obligations compared to UiPath's $1.9 billion in annual recurring revenue at the end of its fiscal 2027 first quarter.
ServiceNow is also growing its recurring revenue stream faster. It achieved a 22% year-over-year growth rate for subscription revenue in the first quarter. UiPath only managed a 12% year-over-year growth rate for its subscriptions, but its overall revenue was up by 17%.
Almost 9,000 global customers trust ServiceNow, and that includes 85% of the Fortune 500. Those businesses have more financial flexibility to pay more for ServiceNow plans in the future. UiPath has over 10,000 customers, but ServiceNow can charge a premium for its platform.
For instance, ServiceNow has 630 customers that are spending more than $5 million per year with it, while UiPath only has 374 customers paying more than $1 million per year for its platform.
Although ServiceNow has a higher revenue growth rate, UiPath is well positioned to boost its margins. When discussing UiPath's fiscal 2027 first-quarter results, CFO Ashim Gupta noted that it was the first time the company had achieved GAAP profitability in a Q1.
UiPath is now in a position to continue scaling without soaring operating expenses. While costs should continue to rise over time, the company's revenue growth could outpace spending growth in future quarters.
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