Technology stocks were a boon for investors in recent years thanks to the arrival of artificial intelligence (AI). But Wall Street’s appetite for the sector ebbed in 2026, as concerns arose that artificial intelligence would displace many software companies.
This triggered a sell-off among software-as-a-service (SaaS) stocks, leading to share price declines for several successful companies. For long-term investors, these dramatic price drops created an opportunity to acquire shares at attractive valuations.
Two SaaS companies to consider investing in are ServiceNow (NOW 3.13%) and Workiva (WK 2.79%). Both were swept up in Wall Street’s AI panic, and once those fears subside, these stocks could deliver handsome returns. Here’s a deeper look into these businesses.
Image source: Getty Images.
1. ServiceNow’s strengths
Wall Street’s shift away from software stocks caused ServiceNow shares to fall over 30% in 2026 through April 1. Despite this, the company is delivering a strong performance.
Customer demand for its workflow platform remains high. ServiceNow exited the fourth quarter of 2025 with nearly 40% year-over-year growth in net new annual contract values (ACVs) exceeding $1 million. Its Q4 sales rose 21% over the prior year to $3.6 billion.
Today’s Change
(-3.13%) $-3.15
Current Price
$97.40
Key Data Points
Market Cap
$105B
Day’s Range
$96.96 – $105.56
52wk Range
$96.96 – $211.48
Volume
764K
Avg Vol
19M
Gross Margin
77.53%
The company integrated AI agents into its platform, and is seeing strong adoption. For instance, in Q4 its Now Assist AI product’s net new ACV doubled year over year.
The Q4 performance shows customers are sticking with ServiceNow. Wall Street’s fears of AI threatening software businesses appears overblown in ServiceNow’s case.
2. A look at Workiva
Workiva provides a software platform that ensures companies comply with regulatory requirements. Its share price plunged 30% this year through April 1 as AI fears gripped Wall Street. Yet its business is going strong.
Q4 2025 sales rose 20% year over year to $238.9 million. The robust growth helped Workiva achieve Q4 net income of $11.8 million compared to a net loss of $8.8 million.
The company expects growth to continue, with Q1 revenue forecast to reach between $244 million to $246 million. That sum represents a healthy increase over the prior year’s $206 million.
Today’s Change
(-2.79%) $-1.64
Current Price
$57.21
Key Data Points
Market Cap
$3.3B
Day’s Range
$56.91 – $59.77
52wk Range
$56.06 – $97.09
Volume
31K
Avg Vol
929K
Gross Margin
78.47%
Workiva isn’t easily replaced by AI because regulatory compliance is a necessity for businesses. The company’s CEO Julie Iskow explained, “We operate where data needs to be trusted, traceable, defensible and audit-ready.”
Why now is the time to buy Workiva and ServiceNow stocks
With Workiva and ServiceNow shares down, their valuations have dropped as well. This can be seen in the forward price-to-earnings ratio, which tells you how much investors are paying for a dollar’s worth of earnings based on estimates for the next 12 months.
Data by YCharts.
The chart shows Workiva and ServiceNow’s forward earnings multiples are around their low points for the past year, suggesting the stocks are attractively valued. In fact, ServiceNow shares were at a 52-week high of $211.48 last year, and Workiva had reached $97.10. Investors could see a robust return if the stocks can return to those heights.
With both businesses growing sales, and their shares at compelling valuations, now is a good time to invest in these companies.