Gen Digital Signals Clearer Business Acceleration Than ServiceNow

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3▲1 ▼1Impact / 5
Summary · why it matters

Gen Digital is signaling a more concrete business acceleration than ServiceNow, despite ServiceNow's dominant AI narrative. Gen Digital raised its revenue growth outlook to 8% to 10%, calling it a clear trajectory shift from prior mid-single-digit targets, while ServiceNow's guidance raise was clouded by questions about when its AI vision would translate into organic acceleration. Gen Digital's Trust-Based Solutions segment, including the MoneyLion acquisition, grew 20% on a pro forma basis and is expected to generate over $100 million in incremental annual revenue. Trailing metrics show Gen Digital's revenue growth of 27% outpaces ServiceNow's 22%, with a 43% operating margin versus 13.4%, and a price-to-operating-income multiple of 7.8 compared to 47.7 for ServiceNow. The tradeoff centers on whether to underwrite Gen Digital's tangible, in-progress acceleration or pay a premium for ServiceNow's not-yet-fully-realized AI future.

Impact on assets 4

Cloud & Digital Infrastructure▲
Cybersecurity & Digital Trust▲
Gen Digital Inc.
GEN
▲ PositiveDemandrelevance

Raised revenue growth outlook to 8-10% and Trust-Based Solutions segment growing 20% pro forma, indicating stronger end-customer demand.

Artificial Intelligence▼
ServiceNow Inc
NOW
▼ NegativeTechnologyrelevance

ServiceNow's AI vision not yet translating into organic acceleration, with guidance raise clouded by questions.