Core Viewpoint - ServiceNow is set to release its financial results for Q4 and the full year ending December 31, 2025, on January 28, 2026, after market close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and live webcast [1] - The conference call is scheduled to begin at 2 p.m. Pacific Time (22:00 GMT) on January 28, 2026 [2] - Interested parties can access the call via a specific dial-in number or through a provided website link [2] Group 2: Conference Call Replay - An audio replay of the conference call will be available two hours after its completion and will remain accessible for 30 days [3] - The replay can be accessed through the investor relations section of the ServiceNow website or via specific dial-in numbers [3] Group 3: Company Overview - ServiceNow operates as an AI control tower for business reinvention, integrating various systems and data sources to streamline workflows [4] - The platform supports over 75 billion workflows annually, helping organizations enhance operational efficiency [4]

Core Viewpoint - ServiceNow, Inc. is expected to report strong earnings growth, with analysts projecting a profit increase of 23.1% year-over-year for Q4 2025, despite recent stock underperformance and concerns over a significant acquisition [1][2][4]. Financial Performance - The company has a market capitalization of $153.1 billion and is anticipated to report earnings per share (EPS) of $0.48 for Q4 2025, up from $0.39 in the same quarter last year, marking a 23.1% increase [1]. - For the full fiscal year 2025, analysts expect an EPS of $1.96, reflecting a 36.1% increase from $1.44 in fiscal 2024, with further growth projected to $2.37 in fiscal 2026, a year-over-year increase of 20.9% [2]. Stock Performance - Over the past 52 weeks, ServiceNow's shares have declined by 30.9%, underperforming the S&P 500 Index, which rose by 16.2%, and the State Street Technology Select Sector SPDR ETF, which returned 22.9% [3]. Acquisition and Market Sentiment - The recent decline in stock price is attributed to investor reactions to the company's $7.75 billion acquisition of cybersecurity firm Armis, which is the largest in ServiceNow's history and raises concerns about balance sheet risk and strategic direction [4]. - KeyBanc Capital Markets downgraded the stock to "Underweight" from "Sector Weight," citing fears that AI automation could reduce software seat counts and pressure long-term demand, contributing to negative market sentiment [5]. Analyst Ratings - The consensus opinion on ServiceNow stock is highly bullish, with a "Strong Buy" rating from 33 out of 43 analysts, while the mean price target of $225.02 indicates a potential upside of 51.2% from current levels [6].

Core Insights - ServiceNow (NOW) is recognized as a reliable growth company within the SaaS software sector, showcasing consistent performance and growth potential [1] Company Overview - ServiceNow is led by Bert Hochfeld, who has a strong background in economics and an MBA from Harvard, with extensive experience in the tech industry [1] - Hochfeld has worked for notable companies such as IBM, Raytheon Data Systems, and BMC Software, and has been a sell-side analyst since the 1990s [1] - He founded Hochfeld Independent Research Group in 2001, providing research services to major institutions and hedge funds [1] - The Hepplewhite Fund, managed by Hochfeld, was rated as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1] Investment Expertise - Hochfeld has published over 500 articles on Seeking Alpha, focusing on information technology companies, and is highly regarded for his investment insights [1] - He ranks in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1]

Core Insights - ServiceNow (NOW) is recognized as a reliable growth company within the SaaS software sector, indicating strong performance and market position [1] Company Overview - ServiceNow is led by Bert Hochfeld, who has a notable background in economics and an MBA from Harvard, contributing to his expertise in the tech industry [1] - Hochfeld has a long career history with major companies such as IBM, Memorex/Telex, Raytheon Data Systems, and BMC Software, showcasing extensive experience in technology [1] - In the 1990s, Hochfeld transitioned to a sell-side analyst role, earning accolades from the Wall Street Journal for his insights into the software industry [1] Research and Investment Background - In 2001, Hochfeld established Hochfeld Independent Research Group, providing research services to significant institutions like Fidelity and Columbia Asset, indicating a strong reputation in the investment community [1] - He also managed the Hepplewhite Fund, which specialized in technology investments and was rated as the best performing small-cap fund for the five years ending in 2011 by Hedge Fund Research [1] - Hochfeld has authored over 500 articles on Seeking Alpha, focusing on information technology companies, reflecting his deep engagement with the sector [1] Recognition and Performance - Hochfeld is highly regarded for his investment acumen, ranking in the top 0.1% of Tip Ranks analysts for his successful selection of information technology stocks [1]

Core Insights - ServiceNow (NOW) shares have decreased by 29.9% over the past year, underperforming the Zacks Computer and Technology sector's growth of 25.1% and the Zacks Computers IT Services industry's decline of 19.1% [1][7] - The decline is attributed to a challenging macroeconomic environment and a slowdown in subscription revenue growth [1][7] - The company's fourth-quarter 2025 guidance indicates tightening budgets from U.S. federal agencies, which is expected to negatively impact subscription revenues [1] Subscription Revenue Guidance - ServiceNow has raised its 2025 subscription revenue guidance to between $12.835 billion and $12.845 billion, reflecting a 20% growth on a non-GAAP constant currency basis and 20.5% on a reported basis compared to 2024 [2] - This growth rate is slower than the 23% subscription revenue growth rate achieved in 2024 [2] Valuation and Performance - NOW shares are currently considered overvalued, with a Value Score of F, trading at a forward 12-month price/sales ratio of 9.77X compared to the broader sector's 7.42X [5] - The shares are trading below both the 50-day and 200-day moving averages, indicating a bearish trend [8] AI and Partnerships - ServiceNow's AI products are projected to exceed $0.5 billion in Annual Contract Value (ACV) by 2025, with a target of reaching $1 billion by 2026 [11] - The company has expanded its partner base, including collaborations with NVIDIA and Microsoft, to enhance its AI capabilities and enterprise traction [12][13] Acquisitions - ServiceNow has been actively expanding its portfolio through acquisitions, including Logik.io, data.world, and Moveworks, which enhance its AI and workflow capabilities [16] - The acquisition of Veza strengthens its security and risk management offerings, while the $7.75 billion acquisition of Armis aims to bolster its cyber exposure management capabilities [17] Earnings Estimates - The Zacks Consensus Estimate for NOW's fourth-quarter 2025 earnings is 87 cents per share, indicating a 19.2% growth compared to the previous year [18] - The consensus estimate for 2025 earnings is $3.46 per share, suggesting a 24.5% growth over 2024 [18] - For 2026, the earnings estimate is projected at $4.04, reflecting a 16.6% growth over the 2025 estimate [19] Conclusion - ServiceNow's acquisition-driven portfolio expansion, increasing workflow adoption, and strong partner relationships are expected to enhance top-line growth in 2026 [20] - However, the challenging macroeconomic environment and high valuation remain concerns [20]

Core Business Development - CoreX has successfully completed the acquisition of InSource's ServiceNow business unit, enhancing its capabilities as a high-growth Elite Consulting and Implementation Partner of ServiceNow [1] - The transaction officially closed in late December 2025, marking a significant milestone for both companies [1] Strategic Partnership - This agreement unites two high-performing ServiceNow partners, which is expected to strengthen their market position and delivery expertise [1] - InSource is recognized for its deep delivery expertise and commitment to client success, complementing CoreX's existing strengths [1]

Core Viewpoint - ServiceNow has appointed Hossein Nowbar as President and Chief Legal Officer, marking a significant leadership change within the company [1] Company Leadership Changes - Hossein Nowbar joins ServiceNow as President and Chief Legal Officer [1] - Russ Elmer, the previous Chief Legal Officer since 2018, will transition to the role of Special Counsel, continuing to provide strategic guidance [1]

In a market still captivated by the promise of artificial intelligence (AI), trade is broadening beyond mega-cap tech. While giants like Nvidia (NVDA) , Microsoft (MSFT) , and Alphabet (GOOGL) still anchor markets, investors are rotating into the next wave of AI beneficiaries. Amid this evolving landscape, ServiceNow (NOW) stands out. As a backbone for automated digital workflows and enterprise AI tools from IT operations to HR and customer service, ServiceNow is positioning itself not just as a software ...

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] Stock Selection Criteria - The investor screens thousands of stocks, primarily in the US, looking for those that have undergone recent sell-offs, particularly when insiders are buying shares at lower prices [1] - Professional background checks are conducted on insiders who purchase shares post-sell-off, adding a layer of due diligence to the investment process [1] Technical Analysis - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts, employing multicolor lines for clarity [1] - Trend lines are drawn in multicolor patterns, indicating a systematic approach to technical analysis [1]

Core Insights - ServiceNow (NOW) is actively expanding its portfolio through multiple acquisitions, including Logik.io, data.world, and Moveworks, enhancing its capabilities in AI-powered solutions and enterprise data governance [1] - The company has crossed a significant milestone with its Security and Risk business, achieving over $1 billion in annual contract value in Q3 2025 [2] - The acquisition of Veza strengthens NOW's security offerings by providing advanced identity governance capabilities, which will integrate with ServiceNow's existing workflows and AI systems [3] - ServiceNow's acquisition of Armis for $7.75 billion enhances its security portfolio, particularly in cyber exposure management, and is expected to drive AI adoption [4] - The company has raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a 20% growth on a non-GAAP constant currency basis [5] Financial Performance - ServiceNow's subscription revenue growth is projected to slow to 20% in 2025, down from 23% in 2024, due to tightening budgets in U.S. federal agencies [6] - The company's share price has decreased by 27.4% over the past year, underperforming the broader Zacks Computer and Technology sector, which returned 26.2% [11] - The forward 12-month price/sales ratio for ServiceNow is 12.01X, significantly higher than the sector average of 7.31X, indicating that the stock may be overvalued [14] Competitive Landscape - ServiceNow faces strong competition from Atlassian and Salesforce, both of which are enhancing their offerings in enterprise collaboration and AI capabilities [7][9] - Atlassian is focusing on subscription-based solutions and has seen significant enterprise penetration, with over 500 customers spending more than $1 million annually [8] - Salesforce reported a 10% year-over-year increase in subscription and support revenues, driven by its AI products, indicating robust growth in its cloud business [10]