ServiceNow (NYSE: NOW) is the closest publicly-traded platform comparable to Palantir. Both companies operate enterprise AI platforms with 'land and expand' go-to-market models, high net retention rates (~125%), and strong free cash flow generation. However, their valuations diverge dramatically: Palantir trades at ~67x EV/Revenue vs ServiceNow at ~8x. ServiceNow generated $13.3B revenue in FY2025 (+21% YoY) with $1.75B GAAP net income, $4.6B free cash flow (35% margin), and 8,800 customers.
The comparison raises a fundamental question: does Palantir's growth trajectory and AI positioning justify trading at 8x the multiple of a proven platform company with 3x the revenue?
| Snowflake | What justifies PLTR premium over NOW: (1) Revenue growth 56-61% vs 21% — nearly 3x faster; (2) Revenue is accelerating (17%->29%->56%->61%) vs NOW decelerating (30%->23%->21%); (3) Rule of 40 score... |
| ServiceNow | What justifies PLTR premium over NOW: (1) Revenue growth 56-61% vs 21% — nearly 3x faster; (2) Revenue is accelerating (17%->29%->56%->61%) vs NOW decelerating (30%->23%->21%); (3) Rule of 40 score... |
| Microsoft | ServiceNow's partnership breadth as competitive moat: announced partnerships with Anthropic (Claude integration), OpenAI, Microsoft (Agent 365 integration), and Figma in Q4 2025/Q1 2026. Acquired A... |
Key Risk
Valuation comparison (March 2026): Palantir EV ~$340B at ~67x EV/TTM Revenue ($4.5B), 126x EV/EBITDA. ServiceNow EV ~$111B at ~8x EV/TTM Revenue ($13.3B), 22x EV/EBITDA. Palantir trades at ~8.4x the EV/Revenue multiple of ServiceNow despite ServiceNow having 3x the revenue
Will ServiceNow's multi-model partnership strategy (Anthropic, OpenAI, Microsoft) prove more resilient than Palantir's proprietary ontology approach?