GitLab Hits 23% ARR Growth While ServiceNow Logs 40% ACV Deal Increase
GitLab increased customers with ARR above $5K to 10,475 (+10% YoY) and ARR above $100K to 1,405 (+23% YoY) in Q3 fiscal 2026 after launching the Duo Agent AI platform. ServiceNow achieved 244 deals over $1M ACV (+40% YoY) and 603 clients with ACV above $5M (+20% YoY).
1. Market Outlook
The global workflow automation market was valued at $25.10 billion in 2025 and is projected to grow to $65.26 billion by 2034, reflecting an 11.20% CAGR between 2026 and 2034. This rapid expansion underpins demand for DevSecOps and enterprise workflow platforms.
2. GitLab Growth
In Q3 fiscal 2026, GitLab grew its customer count with annual recurring revenue (ARR) above $5,000 to 10,475 (up 10% YoY) and those above $100,000 to 1,405 (up 23% YoY). The January launch of the GitLab Duo Agent platform introduced agentic AI orchestration across the DevSecOps lifecycle to boost automated flows and governance.
3. ServiceNow Momentum
Exiting Q4 2025, ServiceNow recorded 244 transactions exceeding $1 million in new annual contract value (ACV), a 40% year-over-year gain, and had 603 customers with ACV above $5 million, up 20% YoY. Recent AI enhancements include embedding Claude into core workflows and launching Autonomous Workforce and EmployeeWorks offerings.
4. Valuation and Performance
Over the past 12 months, GitLab shares have fallen 53.7% and ServiceNow shares 43.4%, driven by macro uncertainty and margin pressures. On a forward 12-month price/sales basis, GitLab trades at 4.13x versus ServiceNow’s 6.96x, with respective earnings estimates of $0.89 and $4.13 per share for their upcoming fiscal years.