MDB vs. NOW: Which Enterprise Software Stock is the Smarter Buy?

Enterprise software has become one of the fastest-growing areas of technology, reshaping how organizations operate in the era of cloud and AI. MongoDB MDB and ServiceNow NOW are both central to this transformation, with MongoDB driving next-generation database infrastructure and ServiceNow leading workflow automation across industries.

Per Grand View Research, the global enterprise software market was valued at $263.8 billion in 2024 and is projected to reach $517.3 billion by 2030, expanding at a 12.1% CAGR. This growth is driven by AI integration, cloud migration and digital transformation initiatives. Both MongoDB and ServiceNow are positioned to benefit meaningfully from these trends. Let’s delve deeper to determine which is the better investment now.

The Case for MDB

MongoDB is positioned to capitalize on the shift toward modern application architectures and AI workloads. Atlas, its flagship cloud database, remains the key growth driver. Atlas revenues grew 29% year over year in the second quarter of fiscal 2026, highlighting the platform’s accelerating momentum. The Zacks Consensus Estimate for third-quarter fiscal 2026 Atlas revenues is pegged at $437 million, up 20.4% from the year-ago quarter’s reported figure, reinforcing expectations of sustained adoption. With its unified platform that combines database, search and vector functions, MongoDB is becoming increasingly essential for enterprises scaling AI applications.

MDB’s document-based model offers greater flexibility than relational databases for handling complex, unstructured data. Native integration of search and vector features reduces reliance on multiple systems, enabling enterprises to build sophisticated AI applications more efficiently.

Customer growth adds support. MongoDB added 2,800 customers in the past quarter, bringing the total to 59,900. The consensus mark for total customers is pegged at 61,500 for the third quarter, up 16.9% year over year. This balance of enterprise penetration and self-serve adoption reflects both breadth and depth of demand, with the upmarket strategy complemented by robust traction among smaller users.

The Zacks Consensus Estimate for fiscal 2026 earnings has been revised 18.6% upward over the past 30 days to $3.64 per share, signaling growing optimism around MDB’s profitability trajectory.

MongoDB, Inc. Price and Consensus

MongoDB, Inc. price-consensus-chart | MongoDB, Inc. Quote

The Case for NOW

ServiceNow is expected to sustain steady growth in workflow automation, anchored by the NOW platform, its flagship offering that began in IT service management and now spans HR, customer service, finance and industry workflows. This breadth has made the company deeply embedded in enterprise operations, reinforcing its mission-critical role. Subscription revenues increased 21.5% in constant currency during the second quarter of 2025 to $3.11 billion, showing consistent execution. The Zacks Consensus Estimate for third-quarter subscription revenues is pegged at $3.26 billion, up 20.7% year over year.

The NOW Platform continues to expand as ServiceNow embeds more automation and intelligence across workflows. The company’s AI suite, Now Assist, is gaining, with Pro Plus deal activity rising meaningfully in recent quarters. In the second quarter, current remaining performance obligations (cRPO) rose 24.5% year over year to $10.9 billion. The consensus mark for the third-quarter cRPO is pegged at $11.09 billion, up 18.4% year over year, reinforcing demand visibility.

Customer metrics highlight stability. Renewal rates remain at 98%, while 528 customers generated more than $5 million in annual contract value in the second quarter of 2025. This scale, reinforced by consistent RPO growth, reflects ServiceNow’s maturity, with expansion expected to continue at a measured pace.

The Zacks Consensus Estimate for ServiceNow’s fiscal 2025 earnings is pegged at $16.79 per share, with no revisions over the past 30 days, signaling tempered investor sentiment.

ServiceNow, Inc. Price and Consensus

ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote

Price Performance and Valuation of MongoDB and ServiceNow

MongoDB’s stock performance has significantly outpaced ServiceNow’s in 2025. Shares of MDB have gained 36.7% year to date, reflecting investor optimism around accelerating Atlas adoption and upward estimate revisions. In contrast, NOW shares have declined 14.1% over the same period, as moderating growth and limited estimate momentum have weighed on sentiment.

MDB & NOW Share Performance in YTD Period

Both stocks are overvalued as suggested by the Value Score of F. ServiceNow trades at a forward 12-month price-to-sales of 12.85X, reflecting confidence in its scale and stability but leaving limited scope for near-term upside. MongoDB trades at 10.15X, a premium underpinned by stronger expected revenue growth and upward estimate revisions. This relative positioning suggests MongoDB holds greater room for re-rating if adoption momentum continues.

MDB vs. NOW: P/S F12M Ratio

Conclusion

Both MongoDB and ServiceNow are positioned to benefit from accelerating digital transformation, but the former offers greater upside. Its document-based architecture, rising Atlas adoption and upward estimate revisions support stronger re-rating potential. ServiceNow remains a powerful platform due to its scale and stickiness; however, growth is expected to moderate as its revenue base matures. With both stocks appearing overvalued, MongoDB’s relative positioning makes it the better opportunity. 

MongoDB currently carries a Zacks Rank #2 (Buy), while ServiceNow has a Zacks Rank #3 (Hold), making the former the preferred pick at present levels.

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

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This article originally published on Zacks Investment Research (zacks.com).

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