Meet the Newest Artificial Intelligence (AI) Stock-Split Stock in the S&P 500. It Soared 1,000% Over the Past Decade, and It's Still a Buy Right Now, According to Wall Street Analysts

Core Insights - The article highlights the strong demand for AI services, particularly from ServiceNow, which has integrated generative AI into its software suite, driving significant stock performance and investor interest [1][4][12] Company Performance - ServiceNow announced a 5-for-1 stock split following a 1,000% increase in share price over the last decade, marking its first split since the IPO in 2012 [3][10] - The company aims to exceed its initial goal of $500 million in net new annual contract value (ACV) for its Now Assist suite, with expectations to reach $1 billion in ACV by 2026 [5] - The AI Control Tower's deal volume quadrupled year over year in Q3, indicating strong growth potential for the platform [6] Financial Metrics - ServiceNow's market capitalization stands at $179 billion, with a current share price of $861.87 and a gross margin of 78.05% [9] - Revenue grew by 20.5% year over year in Q3, with a projected growth of 19.5% for Q4, alongside an expected operating margin expansion of 150 basis points for the full year [13][15] Customer Engagement - The company has successfully implemented a land-and-expand strategy, leading to high customer retention rates of around 98% and significant increases in customer spending over time [8][9] - Customers who joined in 2016 or earlier have doubled their spending, while the 2025 cohort has increased their initial ACV by 45%, reflecting the strength of ServiceNow's AI services [9] Market Outlook - Despite a high forward PE ratio of 51 and a price-to-sales ratio of 14, ServiceNow is positioned for continued revenue and earnings growth in the 20% range, justifying its high valuation [15]