Robust Earnings Results Lifted ServiceNow (NOW) in Q2

Core Insights - Brown Advisory's Large-Cap Growth Strategy demonstrated resilience in Q2 2025, achieving a return of 16%, slightly underperforming the Russell 1000® Growth Index [1] - The strategy effectively protected investor capital during market declines and participated in the rebound since early April [1] Company Highlights - ServiceNow, Inc. (NYSE:NOW) was highlighted as a key stock in the Brown Advisory Large-Cap Growth Strategy, with a one-month return of 10.07% and a 52-week gain of 9.21% [2] - As of September 08, 2025, ServiceNow's stock closed at $939.33 per share, with a market capitalization of $194.929 billion [2] - ServiceNow outperformed expectations in Q2 2025, driven by strong earnings results and significant growth in its Federal Government segment, with Net New Annual Contract Value (NNAC) increasing by 30% year-over-year [3] - The company's 2025 analyst day indicated strong momentum in AI-related revenue, suggesting a positive outlook for future growth [3] Market Position - ServiceNow is not among the top 30 most popular stocks among hedge funds, with 106 hedge fund portfolios holding its shares at the end of Q2 2025, unchanged from the previous quarter [4] - While ServiceNow is recognized for its potential, some analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [4]