ServiceNow (NOW Quick QuoteNOW - Free Report) and Figma (FIG Quick QuoteFIG - Free Report) leverage software-as-a-service (SaaS) and platform-as-a-service (PaaS) technologies to offer software that helps enterprises in transforming their businesses. ServiceNow, through its cloud-based platform, offers AI-powered workflow solutions, while Figma offers a collaborative and browser-based design-prototyping platform. However, NOW or FIG, which of these enterprise software stocks has the greater upside potential? Let’s find out.

The Case for NOW Stock

NOW’s workflows are gaining traction. ServiceNow is gaining a footprint among enterprises with Workflow Data Fabric included in 17 of the company’s top 20 largest deals. Through Workflow Data Fabric, ServiceNow offers a combination of data, analytics and AI, which, along with agentic AI, helps enterprises get faster and smarter outcomes. CRM workflow offers a massive growth opportunity for ServiceNow, driven by sales and order management solutions and acquisitions of Logik.ai, which helped NOW close 9 CPQ deals in June alone.

ServiceNow’s latest Zurich platform promises rapid AI adoption through the combination of multi-agentic AI development, enterprise-grade security and autonomous workflows. The Zurich release offers a Build Agent that brings vibe coding to enterprise scale. Vibe coding allows employees to create production-ready applications from natural language prompts. Developer Sandbox helps developers build better applications by providing isolated environments for building and testing. It supports collaboration by multiple teams, as well as building and testing without any conflict. ServiceNow Vault Console centralizes discovery, classification, and protection of sensitive data across workflows, while Machine Identity Console manages and secures API and bot identities.

ServiceNow is benefiting from a rich partner base that includes the likes of NVIDIA, Cisco Systems, Amazon, Aptiv, Vodafone Business, UKG, Zoom and others. The NVIDIA-NOW collaboration is redefining employee support as the semiconductor giant is using ServiceNow AI to resolve issues, deliver personalized help and provide answers in a short span of time. ServiceNow’s collaboration with Amazon Web Services helped in bi-directional data integration solutions to eliminate enterprise silos. ServiceNow and Cisco have collaborated to bring together the latter’s AI Defense with ServiceNow SecOps to provide more holistic AI risk management and governance.

These factors are expected to drive top-line growth. For third-quarter 2025, NOW expects subscription revenues between $3.26 billion and $3.265 billion, suggesting year-over-year growth of 19.5% at cc. The Zacks Consensus Estimate for third-quarter 2025 subscription revenues is pegged at $3.26 billion, indicating 20.2% growth from the year-ago quarter.

The Case for FIG Stock

Figma’s prospects are expected to benefit from an innovative portfolio. At its annual Config conference, the company launched four new products — Figma Make, Figma Draw, Figma Sites and Figma Buzz — doubling its product offerings. Figma also launched the Dev Mode MCP server, which speeds up developer workflows by bringing context from Figma Design into any surface that consumes MCP.

The company has been adding new features to boost user engagement. Figma has added improvements that make it easier and more reliable to navigate files with a keyboard or screen reader. The company made the Figma app available in ChatGPT, and it will be able to recommend and create AI-generated FigJam diagrams based on user conversations. A new feature now allows users to copy any design from a Figma Make preview to the design canvas. 

The new set of features is expected to boost Figma’s clientele. The company had 11,906 paid customers with more than $10,000 in annual recurring revenues (ARR) as of June 30, 2025, and 1,119 paid customers with more than $100,000 in ARR as of June 30, 2025.

Figma now expects third-quarter 2025 revenues between $263 million and $265 million, which suggests 33% year-over-year growth at the midpoint, but slower than the 41% growth reported in the second quarter of 2025. The Zacks Consensus Estimate for third-quarter 2025 revenues is pegged at $263.9 million.

Price Performance and Valuation of NOW and FIG

In the past three months, NOW shares have lost 4.7% while Figma shares have dropped a whopping 56.4%.

NOW vs. FIG: Share Price Performance

Image Source: Zacks Investment Research

Valuation-wise, both NOW and FIG shares are currently overvalued, as suggested by a Value Score of F, respectively.

How Do Earnings Estimates Compare for NOW & FIG?

The Zacks Consensus Estimate for NOW’s 2025 earnings is pegged at $16.82 per share, which has been steady over the past 30 days, indicating a 20.8% rise year over year.
 

The Zacks Consensus Estimate for FIG’s 2025 earnings is pegged at 30 cents per share, unchanged over the past 30 days, indicating an 108% increase year over year.

Here’s Why NOW Has an Edge Over FIG

ServiceNow’s robust AI portfolio and strong partner base are expected to drive its clientele. Investors currently holding the stock should continue to stay put despite a challenging macroeconomic environment and NOW’s slowing growth prospects in the U.S. public domain. 

However, Figma is facing tough competition from well-established Adobe, Microsoft and Atlassian, as these companies boast of a growing AI-powered revenue base. Its AI initiatives are in a much nascent stage as compared with Adobe, Microsoft and Atlassian. 

Currently, ServiceNow carries a Zacks Rank #3 (Hold), which makes it a better pick than Figma, which has a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.