The recent AI passion at Wall Street is less effective than it was a few days back, and now Wall Street is acting with apprehension and acting downwards on the software equities, and the concern has also offered the seasoned investors a rare chance to own stakes in both prominent companies.
ServiceNow and Okta share a decrease in the environment of fears that AI would reduce the background functional value chains; however, recent statistics show that both businesses are still competitive in the AI-oriented market. ServiceNow (NYSE: NOW) shares ended up 4.86%. Intraday on February 26, 2026, after a 34%. year-to-year decline, and Okta (NASDAQ: OKTA) was at 71.22, up 3.06%.
ServiceNow Powers Ahead
ServiceNow is an automated workflow in the enterprise, and critics argue that its orchestration components will be replaced by artificial intelligence. The company, however, continuously integrated AI technologies into its platform over the last few years, as affirmed by CEO Bill McDermott in his statements, stating that AI does not eliminate enterprise orchestration; on the contrary, it is conditional upon it.
This claim is supported by empirical data: 2025 revenue is projected to grow 21% to $13.3bn, net incomes are set to optimize at $1.7bn up 2.6%, and first-quarter 2026. Subscription revenue is set to grow 22%, to 3.7bn. The gross margins have also not fallen and instead stand at 77.53 0, and the average number of shares that the firm traded in a day of 27 million shares against a benchmark of 16 million shares per day indicates increased investor interest.
Okta Locks In Growth
The identity management system of Okta is resistant to intrusion into cyberspace and stands strong even when challenged by the intrusion services offered by other companies, like the AI-driven cracking of codes offered by Anthropic, which offers intrusion detection but does not offer credential authentication. The firm has learnt to distinguish between legitimate AI agents and malicious threats, and this ability is necessary at a time when automation is spreading. The fiscal third-party 2025 revenue increased 13.9% to reach $742 million dollars, net income doubled, and the gross margins were 77.08.
Valuations Scream Buy
Forward price-to-earnings ratios are at all-time lows, almost half of peak levels, even as growth rates stay in double digits. Analyst Robert Izquierdo sees these valuation compressions as offering compelling entry points, now that AI-related market panic is subsiding.
Moving forward, investors should expect huge rebounds. ServiceNow’s AI-coded platform and Okta’s cybersecurity moat both suggest the companies will experience over 22% annual growth until 2027. These results are projected to outpace the S&P 500’s 2026 forecast. Therefore, directing capital to these equities seems wise.