Which SaaS Segments Are Growing Fastest? 4-Company Breakdown
Headline revenue growth hides segment-level divergence. ServiceNow has BOTH segments growing 20%+, while Salesforce professional services declined -5.7%. Which SaaS company has the healthiest segment mix?
Which SaaS Segments Are Actually Accelerating? 4-Company Breakdown (2025)
Last Updated: December 29, 2025 Data Currency: Q3 2025 10-Q filings. NOW SEC Filings | ADBE SEC Filings
TL;DR: Headline revenue growth hides segment-level divergence. ServiceNow is the clear winner with BOTH segments growing 20%+ (Subscription +21.5%, Services +31.7%). Salesforce shows the most concerning pattern with professional services declining -5.7% while subscription growth slows to +9.5%. Adobe has legacy drag from Publishing (-10.2%), and Intuit shows balanced strength with the lowest divergence (3pp) and highest margins (78% GBS).
Key Facts:
- NOW: Both segments growing 20%+ (Subscription +21.5%, Services +31.7%)
- CRM: 15.2pp divergence (Subscription +9.5%, Services -5.7%)
- ADBE: 21.7pp divergence (Digital Media +11.5%, Publishing -10.2%)
- INTU: Lowest divergence (3pp), highest margin (78% GBS operating margin)
- NOW: 553 customers with ACV >$5M (+17.9% YoY)
Track These Companies: NOW Company Page | ADBE Company Page | CRM Company Page | INTU Company Page
What Is Segment Divergence and Why Does It Matter?
Investors often focus on headline revenue growth, but segment-level analysis reveals the real story. A company can report solid overall growth while one segment declines—masking structural weakness.
Segment divergence measures the gap between a company's strongest and weakest segment growth rates:
| Rating | Range | Interpretation | Example |
|---|---|---|---|
| Exceptional | 0-3pp | Balanced growth, all segments healthy | INTU (3pp) |
| Strong | 3-8pp | Minor divergence, no structural concern | — |
| Moderate | 8-15pp | Notable divergence, monitor trends | NOW (10.2pp) |
| Elevated | 15-20pp | High reliance on one segment | CRM (15.2pp) |
| Critical | >20pp | Structural weakness in declining segment | ADBE (21.7pp) |
High divergence isn't always bad—it may indicate strategic focus. But when the weakest segment is declining, it signals potential risk that headline numbers don't capture.
For further reading on segment analysis methodology, see CFA Institute's guidance on segment reporting and Investopedia's segment reporting explanation.
What Is the Current SaaS Segment Performance Ranking?
| Company | Best Segment | Growth | Worst Segment | Growth | Divergence | Health Score |
|---|---|---|---|---|---|---|
| NOW | Prof Services | +31.7% | Subscription | +21.5% | 10.2pp | 8/10 |
| INTU | Consumer | +21% | GBS | +18% | 3pp | 8/10 |
| ADBE | Digital Media | +11.5% | Publishing | -10.2% | 21.7pp | 7/10 |
| CRM | Subscription | +9.5% | Prof Services | -5.7% | 15.2pp | 7/10 |
Winner: ServiceNow—both segments accelerating 20%+, no structural weakness. Concern: Salesforce—services declining with management expecting continued weakness.
How to Interpret Segment Health Scores
| Score | Rating | What It Means |
|---|---|---|
| 9-10 | Exceptional | All segments growing, balanced mix, expanding margins |
| 7-8 | Strong | Both segments positive OR high margins offset divergence |
| 5-6 | Moderate | Significant divergence but core segment healthy |
| 3-4 | Concerning | Declining segment AND slowing core growth |
| 1-2 | Critical | Multiple segments declining, structural issues |
Methodology: Score = 0.4 × Growth + 0.3 × Divergence + 0.3 × Margin
Why Is ServiceNow the Segment Growth Leader?
From NOW Q3 2025 10-Q: "Subscription revenues increased by $584 million... primarily driven by increased purchases by new and existing customers. Professional services and other revenues increased by $26 million... due to an increase in services and trainings provided to new and existing customers."
NOW Segment Breakdown
| Segment | Q3 2025 Revenue | YoY Growth | Trend |
|---|---|---|---|
| Subscription | $3,299M | +21.5% | Accelerating |
| Professional Services | $108M | +31.7% | Accelerating |
Why NOW Wins:
- Both segments growing 20%+—no divergence risk
- 553 customers with ACV >$5M (+17.9% YoY)—enterprise traction
- Professional services growth supports subscription expansion
- Management guides both segments to "increase in absolute dollars"
NOW Key Metrics
| Metric | Value | YoY Change |
|---|---|---|
| Customers with ACV >$5M | 553 | +17.9% |
| Subscription Growth | +21.5% | Accelerating |
| Services Growth | +31.7% | Accelerating |
| Segment Health Score | 8/10 | Strong |
Why Does Intuit Have the Healthiest Segment Balance?
From INTU Q1 FY2026 10-Q: "QuickBooks Online Accounting revenue increased $241 million, or 25%, due to the interrelated factors of higher effective prices, customer growth, and mix-shift."
INTU Margin Leadership: Global Business Solutions operates at 78% operating margin—the highest segment margin among these four SaaS companies. Consumer segment margin expanded +700bps to 65.3%.
INTU Segment Breakdown
| Segment | Q1 FY2026 Revenue | YoY Growth | Operating Margin | Margin Change |
|---|---|---|---|---|
| Global Business Solutions | $2,991M | +18% | 78% | -100 bps |
| Consumer | $894M | +21% | 65.3% | +700 bps |
Why INTU Stands Out:
- Lowest divergence (3pp)—balanced segment performance
- Highest margins—78% GBS operating margin, 65.3% Consumer
- Consumer margin expanded +700bps YoY
- Credit Karma driving Consumer growth (+$138M from personal loans, credit cards)
INTU Margin Leadership
| Company | Best Segment Margin | Segment |
|---|---|---|
| INTU | 78% | Global Business Solutions |
| INTU | 65.3% | Consumer |
| ADBE | N/A | (Not disclosed by segment) |
| CRM | N/A | (Not disclosed by segment) |
| NOW | N/A | (Not disclosed by segment) |
What Is Dragging on Adobe's Segment Performance?
From ADBE Q3 2025 10-Q: "Increases in subscription revenue for the Creative and Marketing Professionals customer group were driven by strength in Creative Cloud flagship apps, Adobe Experience Platform and related apps, and Adobe Experience Manager."
ADBE Segment Breakdown
| Segment | Q3 2025 Revenue | YoY Growth | Trend |
|---|---|---|---|
| Digital Media | $4,459M | +11.5% | Improving |
| Digital Experience | $1,476M | +8.9% | Improving |
| Publishing & Advertising | $53M | -10.2% | Declining |
ADBE Challenge: 21.7pp Divergence
- Digital Media ARR grew 11.7% to $18.59 billion
- Publishing & Advertising (-10.2%) creates drag on overall mix
- Prior year included $1B Figma termination fee (one-time)
ADBE Geographic Mix
| Region | Revenue | % of Total | YoY Growth |
|---|---|---|---|
| Americas | $3,555M | 59% | +9.7% |
| EMEA | $1,586M | 27% | +12.9% |
| APAC | $847M | 14% | +11.2% |
Why Is Salesforce Segment Divergence Concerning?
From CRM Q3 2025 10-Q: "The decrease in professional services and other revenues... was primarily due to less demand for larger, multi-year transformation engagements, which may continue in the near term."
CRM Segment Breakdown
| Segment | Q3 2025 Revenue | YoY Growth | Trend |
|---|---|---|---|
| Subscription & Support | $9,726M | +9.5% | Slowing |
| Professional Services | $533M | -5.7% | Declining |
CRM Red Flags:
- 15.2pp divergence—services declining while subscription slows
- Management expects services weakness to "continue in the near term"
- $260M restructuring charges signal operational challenges
- Informatica acquisition (Nov 2025) adds integration risk
CRM Divergence Analysis
| Metric | Subscription | Services | Gap |
|---|---|---|---|
| Growth Rate | +9.5% | -5.7% | 15.2pp |
| Revenue Share | 95% | 5% | Concentrated |
| Trend | Slowing | Declining | Concerning |
What Are the Hidden Risks in Each Company's Segments?
One-Time Items Impact
| Company | One-Time Item | Amount | Impact |
|---|---|---|---|
| ADBE | Figma termination fee (prior year) | $1,000M | Improved YoY comp |
| CRM | Restructuring charges | $260M | Negative |
| NOW | Asset impairment | $30M | Negative |
| INTU | None material | — | Clean |
Segment Concentration Risk
| Company | Revenue Concentration | Risk Level |
|---|---|---|
| CRM | 95% from Subscription | High |
| ADBE | 75% from Digital Media | Moderate |
| INTU | 77% from GBS | Moderate |
| NOW | 97% from Subscription | High (but growing) |
Which SaaS Company Has the Strongest Segment Growth?
Growth Rate Comparison
| Rank | Company | Best Segment Growth | Both Segments Positive? |
|---|---|---|---|
| 1 | NOW | +31.7% (Services) | Yes |
| 2 | INTU | +21% (Consumer) | Yes |
| 3 | ADBE | +11.5% (Digital Media) | No (-10.2% Publishing) |
| 4 | CRM | +9.5% (Subscription) | No (-5.7% Services) |
Segment Health Scorecard
| Company | Growth Score | Divergence Score | Margin Score | Overall |
|---|---|---|---|---|
| NOW | 10/10 | 8/10 | 7/10 | 8/10 |
| INTU | 9/10 | 10/10 | 10/10 | 8/10 |
| ADBE | 7/10 | 5/10 | 7/10 | 7/10 |
| CRM | 6/10 | 5/10 | 7/10 | 7/10 |
What Do Segment Patterns Mean for Investors?
The Bull Case by Company
| Company | Bull Case |
|---|---|
| NOW | Both segments accelerating, enterprise traction (553 ACV >$5M customers), no structural weakness |
| INTU | Highest margins (78% GBS), balanced growth, Consumer margin expanding +700bps |
| ADBE | Digital Media ARR strong ($18.59B), AI-powered product differentiation, geographic diversification |
| CRM | Subscription still growing +9.5%, Informatica acquisition adds data capabilities |
The Bear Case by Company
| Company | Bear Case |
|---|---|
| NOW | High valuation relative to growth, 97% subscription concentration |
| INTU | Seasonal business (tax), Credit Karma regulatory exposure |
| ADBE | 21.7pp divergence, Publishing segment declining, slower growth vs peers |
| CRM | Services declining with management expecting continued weakness, restructuring signals challenges |
Segment-Based Decision Framework
| If You Want... | Consider... | Avoid... |
|---|---|---|
| Balanced segment health | INTU (3pp divergence, 78% margins) | CRM (15.2pp divergence) |
| Highest growth | NOW (both segments 20%+) | ADBE (11.5% best segment) |
| Margin expansion | INTU (+700bps Consumer margin) | CRM (restructuring charges) |
| AI exposure | ADBE (Creative Cloud AI) | — |
Related Analysis
- Stock-Based Compensation: Tech Dilution Analysis - Includes CRM SBC analysis
How Did We Calculate Segment Performance?
Data Sources
| Source | Coverage |
|---|---|
| SEC 10-Q Filings | Q3 2025 (NOW, ADBE, CRM), Q1 FY2026 (INTU) |
| MetricDuck Filing Intelligence | 5-pass extraction (Pass 5: Segment Performance) |
| BigQuery filing_metrics | Q.TREND8 metrics for all 4 companies |
Segment Mapping
| Company | Core Recurring | Secondary | Legacy/Other |
|---|---|---|---|
| NOW | Subscription | Professional Services | — |
| INTU | Global Business Solutions | Consumer | — |
| ADBE | Digital Media | Digital Experience | Publishing |
| CRM | Subscription & Support | Professional Services | — |
Calculation Methodology
- Divergence: Strongest segment growth rate minus weakest segment growth rate
- Health Score: Weighted average of growth (40%), divergence (30%), margin (30%)
- YoY Growth: (Current quarter revenue - Prior year quarter revenue) / Prior year quarter revenue × 100
Limitations
- Segment definitions vary by company; direct comparisons require mapping
- Operating margins not disclosed by segment for all companies (NOW, ADBE, CRM)
- INTU fiscal year differs (Q1 FY2026 = Oct 2025)
- Growth rates may be affected by one-time items and acquisitions (ADBE Figma fee, CRM restructuring)
- Professional services revenue is inherently lower margin and may be strategically de-emphasized
- Segment health scores are MetricDuck methodology; alternative frameworks may yield different rankings
Data as of Q3 2025 10-Q filings. For latest SEC filings, visit company SEC filing pages linked above. For company details, see NOW Company Page, ADBE Company Page, CRM Company Page, INTU Company Page.
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