This AI Stock Just Announced a Stock Split. Is It Time to Buy?

Core Insights - ServiceNow (NYSE: NOW) has announced a five-for-one stock split following strong business performance driven by AI, indicating positive momentum in AI-assisted workflows [1][7] - The company reported a 22% year-over-year increase in total revenue to $3.4 billion, with subscription revenue rising by 21.5% to $3.3 billion, highlighting robust demand [4] - ServiceNow signed over one hundred new transactions exceeding $1 million in annual contract value, contributing to a 24% year-over-year increase in remaining performance obligations (RPOs) to $24.3 billion [5] Financial Performance - The third quarter performance exceeded the company's own guidance, showcasing the effectiveness of its AI platform for business transformation [6] - AI-related products are growing significantly faster than the overall business, with predictions that annual contract value (ACV) for AI products will exceed $1 billion next year, up from over $0.5 billion this year [10] - The AI Control Tower deal volume quadrupled sequentially in Q3, and AI Agent Assist consumption increased 55 times since the end of May, indicating strong growth potential [10] Market Outlook - Despite a recent stock price pullback, shares are considered expensive, suggesting cautious investor sentiment [9] - The company noted potential near-term uncertainties related to U.S. federal budgets amid a government shutdown, although federal business remains a strong area for AI-powered automation [6]