ServiceNow (NOW) and Tyler Technologies (TYL) are significant players in the cloud-based enterprise software sector. While ServiceNow caters primarily to large enterprises across various sectors such as financial services and healthcare, Tyler focuses on government software solutions. The digital transformation market is projected to reach roughly $4 trillion by 2027, with a CAGR of 16.2% from 2022 to 2027, providing both companies with substantial growth opportunities.
As of Q1 2025, ServiceNow reported 72 transactions exceeding $1 million in new annual contract value and achieved 20% year-over-year customer growth with 508 customers having more than $5 million in annual contract value. It anticipates Q2 subscription revenues between $3.03 billion and $3.035 billion. Meanwhile, Tyler Technologies expects a revenue range of $2.31 billion to $2.35 billion for the full year 2025, with a Zacks consensus estimate of $2.33 billion, reflecting an 8.94% year-over-year increase.
ServiceNow’s 2025 earnings estimate is pegged at $16.54 per share, up from previous estimates, indicating an 18.82% increase, while Tyler’s estimate has decreased slightly to $11.13 per share. Both companies have consistently beaten Zacks consensus estimates over recent quarters, with ServiceNow showing an average surprise of 6.61% compared to Tyler’s 3.82%.
