ServiceNow (NOW) closed at $1,057.16 in the latest trading session, marking a +0.29% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow experienced a drop of 0.16%, and the technology-dominated Nasdaq saw a decrease of 0.89%.The the stock of maker of software that automates companies' technology operations has fallen by 0.65% in the past month, leading the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56%.The upcoming earnings r ...

Company Performance and Financials - ServiceNow had 15 deals greater than $5 million in net new ACV and six deals of more than $10 million in Q3 2024, with 96 deals exceeding $1 million in net new ACV [3] - The number of customers contributing more than $20 million grew nearly 40% year over year [3] - The Zacks Consensus Estimate for 2025 earnings is $16.42 per share, indicating an 18.42% year-over-year increase [9] - ServiceNow's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with an average surprise of 9.46% [9] - The consensus mark for 2025 revenues is $13.19 billion, suggesting 20.10% growth over the 2024 estimate of $10.98 billion [10] - ServiceNow shares have declined 10% in the past month but returned 39.3% over the trailing 12-month period, outperforming the sector and industry [16][17] AI and Technology Innovations - ServiceNow is leveraging AI and machine learning, with its total addressable market expected to reach $275 billion in 2026 [1] - The company is integrating Agentic AI into its platform, expected to enhance productivity and reduce issue resolution time [20] - ServiceNow added more than 150 GenAI innovations, including expanded Now Assist capabilities with AI Governance features [21] - The Xanadu update offers AI-powered industry solutions for telecom, media, technology, financial services, and the public sector [19] - Gen AI deals gained traction in Q3 2024, with 44 new Now Assist customers spending over $1 million in ACV and price increases of roughly 30% [23] Partnerships and Collaborations - ServiceNow has major partnerships with Amazon, Microsoft, and NVIDIA, along with deals with Five9, Visa, Snowflake, Zoom, Siemens, and others [5] - The company expanded its collaboration with Amazon Web Services to accelerate AI-driven business transformation by connecting Amazon Bedrock models to ServiceNow [6] - ServiceNow and Microsoft partnered to modernize front-office business processes with Microsoft Copilot and ServiceNow AI agent integration [8] - NVIDIA and ServiceNow are collaborating to develop AI agent use cases on the Now platform using NVIDIA NIM Agent Blueprints [8] Market Position and Valuation - ServiceNow's strong GenAI portfolio and partner base justify its premium valuation, with a forward 12-month Price/Sales ratio of 15.74X, higher than the sector's 6.98X [11][12] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of B, indicating a strong investment opportunity [14] - ServiceNow shares are trading above the 200-day moving average, displaying a bullish trend [18][22] Customer Base and Growth - ServiceNow had 2,020 total customers with more than $1 million in annual contract value (ACV) exiting Q3 2024 [17] - The company's robust GenAI portfolio and strong partner base are expected to drive clientele growth and boost subscription revenues [14]

Cognizant Stores 360 aims to unify the retail ecosystem and elevate customer experiences through integrated, automated and predictive capabilities, powered by ServiceNow.TEANECK, N.J., Jan. 13, 2025 /PRNewswire/ -- Cognizant (NASDAQ:CTSH) announced the launch of Stores 360, a comprehensive retail solution designed to streamline store operations, enhance employee productivity and improve customer experiences. Developed in collaboration with ServiceNow, the solution leverages the Cognizant Neuro® AI platform ...

Stock Split Mechanics - A stock split reduces the share price by a factor while increasing the outstanding share count proportionally, leaving the market capitalization unchanged [1] - The primary purpose of a stock split is to make shares more accessible to retail investors by lowering the per-share price, even though it does not change the underlying valuation [9] ServiceNow's Stock Performance - ServiceNow's stock has gained over 4,000% since its IPO in 2012 and is currently trading near all-time highs [3][6] - The company's shares soared by 50% in 2024, significantly outperforming both the S&P 500 and Nasdaq Composite indices [13] ServiceNow as a Stock Split Candidate - With a current share price of approximately $1,000, ServiceNow is considered a prime candidate for a stock split [13] - The company has never completed a stock split in its history as a public company, despite its market-beating performance and rising share price [4] ServiceNow's Growth Prospects - ServiceNow is positioned as a compelling opportunity for AI investors, with significant upside potential due to the rising importance of AI in enterprise software [5][12] - The company is a growth stock focused on customer acquisition and cross-selling, with profitability trends often being volatile due to reinvestment in R&D and sales/marketing [10] Valuation Considerations - ServiceNow is trading at a premium to its five-year average EV/Revenue ratio, reflecting ongoing valuation expansion [11] - Traditional profit-based valuation methodologies like P/E may not be entirely appropriate for ServiceNow due to its growth-focused dynamics [14]

Stock Performance and Growth Potential - ServiceNow's stock price has increased by 60% from its low in late 2024 and 200% since 2022, with potential for another 20% growth [1] - The company's growth is slowing in 2024 but remains strong in the low 20% range, expected to continue for the next three to five years [1] - Analysts predict a potential move to $1300, representing a 25% gain from early-January lows [5] Analyst Sentiment and Price Targets - Analysts have raised price targets ahead of ServiceNow's Q4 release, with a consensus Moderate Buy rating and growing conviction for new highs in 2025 [3] - Notable firms like Wells Fargo, Raymond James, and JPMorgan Chase have the stock on critical watchlists, tracking it for above-average growth and value [5] Financial Health and Balance Sheet - ServiceNow's balance sheet is strong, with net cash, ultra-low leverage, and declining liabilities, supporting growing cash flow and shareholder value [7] - Total liabilities fell more than 6% in Q3 while assets rose, increasing shareholder equity by nearly 22% year-over-year [7] - Long-term forecasts include accelerated share buybacks and potential dividend distributions [7] Institutional Activity and Market Support - Institutions own over 85% of ServiceNow's stock and have been buying on balance every quarter in 2024, providing strong support [11] - However, there were net sales reported in the first two weeks of 2025, raising concerns about the sustainability of the uptrend [11] Technical Outlook - ServiceNow's stock price pulled back from a peak in late 2024 but the uptrend remains intact, with critical support near $950 [12] - Indicators suggest market strength is building, with potential for new highs in 2025, though there is a risk of entering a trading range [12] AI and Industry Positioning - ServiceNow is well-positioned to benefit from the growing adoption of AI services, with end-to-end solutions adaptable across industry verticals [2] - The company's ability to monetize AI and drive adoption is seen as industry-leading, with decades of growth potential [2] Revenue and Growth Drivers - ServiceNow's Q3 guidance indicated nearly 22% year-over-year growth, driven by increasing client count, growth of large clients, and service penetration [6] - RPO growth exceeded 26% in Q3, a key metric for future revenue growth, with the market watching for stability or further growth in this area [6]

ServiceNow (NOW) closed the latest trading day at $1,049.08, indicating a -0.48% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.The maker of software that automates companies' technology operations's stock has dropped by 8.55% in the past month, falling short of the Computer and Technology sector's loss of 0.39% and the S&P 500's loss of 2.7%.The investment community will be closely ...

In the latest market close, ServiceNow (NOW) reached $1,099.11, with a -0.58% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.04%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw a decrease of 0.05%.The maker of software that automates companies' technology operations's shares have seen an increase of 6.16% over the last month, surpassing the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of ...

Investment Rating - The report assigns an "Outperform" rating to ServiceNow (NOW.N) for the first time [19] Core Views - ServiceNow is a global leader in workflow automation, actively exploring AI integration to unlock growth opportunities [15] - The company has a strong partnership with NVIDIA, co-developing native AI agents on the Now Platform [75] - ServiceNow's latest platform update, Xanadu, significantly expands AI capabilities and integrates with Microsoft Copilot [26] - The company has raised its full-year 2024 guidance, expecting subscription revenue of $10.655-10.66 billion, up 23% YoY [54] Financial Performance - Q3 2024 revenue reached $2.797 billion, up 22% YoY, with subscription revenue of $2.715 billion, exceeding guidance by 2 percentage points [29] - Non-GAAP operating margin exceeded 31%, surpassing guidance by 1.5 percentage points [29] - FY2024 Q3 gross margin was 79.12%, up 0.29 percentage points YoY, with net margin at 15.45%, up 4.87 percentage points YoY [34] - Remaining Performance Obligations (RPO) reached $19.5 billion in Q3 2024, up 36% YoY, while Current RPO (CRPO) was $9.36 billion, up 26% YoY [27] AI Integration and Platform Development - ServiceNow launched Now Assist, a generative AI solution that enhances productivity across IT, customer service, HR, and development workflows [25] - The Xanadu platform update introduced over 350 new AI features, including automated data visualization and email response generation [26] - Now Assist for Creator converts natural language into high-quality code suggestions, enabling faster application development [25] - The company has integrated Microsoft Copilot into its platform, allowing users to automate internal processes seamlessly [26] Market Opportunity and Growth - The global technical services market is expected to grow from $24.9 billion in 2023 to $123.5 billion by 2030, representing a CAGR of 17.4% [86] - ServiceNow's subscription revenue is projected to grow at a CAGR of 22% from 2024 to 2026, reaching $16.134 billion by 2026 [64] - The company's AI solutions are rapidly expanding across industries, with significant growth in technology, media, telecom, retail, and hospitality sectors [27] Valuation - The report uses a PS-based valuation method, assigning ServiceNow a 2025 PS multiple of 19-20x, implying a market cap range of $256.18-269.66 billion [66][67] - Comparable companies include CrowdStrike, Salesforce, The Trade Desk, and Cloudflare, with an average 2025 PS of 20x [66]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify effective metrics for assessing stock momentum [2] Group 2: ServiceNow (NOW) Analysis - ServiceNow currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, ServiceNow shares increased by 7.14%, while the Zacks Computers - IT Services industry remained flat [7] - In the last month, ServiceNow's shares rose by 10.45%, outperforming the industry's 4.28% [7] - Over the past quarter, ServiceNow shares have risen by 24.93%, and by 68.79% over the last year, compared to the S&P 500's increases of 8.43% and 31.8%, respectively [8] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for ServiceNow is 1,207,265 shares, indicating a bullish sign with rising stock prices [9] - In terms of earnings estimates, 11 estimates have been revised upwards in the last two months, increasing the consensus estimate from $13.81 to $13.87 [11] - For the next fiscal year, 7 estimates have moved upwards while 5 have been revised downwards [11] - Overall, ServiceNow is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12]

Core Viewpoint - ServiceNow's stock has appreciated significantly, driven by its expanding Generative AI portfolio, strong partner collaborations, and increasing clientele, outperforming the broader market and industry benchmarks [1][2]. Group 1: Stock Performance - ServiceNow shares have increased by 60.3% over the past 12 months, compared to 34.7% for the Zacks Computer & Technology sector and 20% for the Zacks Computers – IT Services industry [1]. - The stock is currently trading above both the 50-day and 200-day moving averages, indicating a bullish trend [2][3]. Group 2: Generative AI and Clientele Expansion - ServiceNow is leveraging AI and machine learning to enhance its solutions, with its total addressable market projected to reach $275 billion by 2026 [8]. - The recent Xanadu update introduces AI-powered solutions across various sectors, including telecom, financial services, and public sector [8][9]. - The integration of Agentic AI is expected to enhance productivity and issue resolution for Customer Service Management and IT Service Management [10]. - ServiceNow plans to add over 150 GenAI innovations to its platform, including AI governance features to ensure secure AI practices [11]. - As of Q3 2024, ServiceNow had 2,020 customers with annual contract values exceeding $1 million, with significant growth in high-value contracts [11][12]. Group 3: Strategic Partnerships - ServiceNow has expanded its collaboration with Amazon Web Services to enhance AI-driven business transformation [13]. - The partnership with Microsoft aims to modernize business processes through the integration of Microsoft Copilot and ServiceNow AI agents [14]. - Additional partnerships with companies like Visa, Snowflake, and IBM are expected to further enhance ServiceNow's market share [15]. Group 4: Financial Guidance and Performance - For 2024, ServiceNow expects subscription revenues between $10.655 billion and $10.66 billion, reflecting a 23% increase from 2023 [16]. - Projected subscription revenues for Q4 2024 are between $2.875 billion and $2.88 billion, indicating a year-over-year growth of 21.5-22% [17]. - The Zacks Consensus Estimate for 2024 earnings is $13.87 per share, representing a 28.66% year-over-year increase [18]. Group 5: Liquidity and Valuation - ServiceNow reported a cash balance of $5.295 billion as of September 30, 2024, with a free cash flow of $471 million in Q3 2024 [20]. - The company expects a free cash flow margin of 31% for 2024, allowing for growth opportunities such as acquisitions and share repurchases [21]. - ServiceNow's stock is trading at a premium valuation, with a forward Price/Sales ratio of 18.08X, significantly higher than the sector average [22][24].