ServiceNow Jumps 8.78% as Reddit Reconsiders Whether the AI Selloff Went Too Far

Core Viewpoint - ServiceNow shares increased by 8.78% over the past week as Reddit sentiment shifted from neutral to bullish, driven by Nvidia CEO's defense of enterprise software valuations and the launch of ServiceNow's Autonomous Workforce suite [1][1]. Group 1: Company Performance - ServiceNow's Q3 operating margin reached 33.5%, exceeding guidance by 300 basis points [1]. - Free cash flow grew by 26% year-over-year to $592 million in Q3 2025, with remaining performance obligations (RPO) ending at $24.3 billion, a 23% increase in constant currency [1]. - The Autonomous Workforce suite claims a 90% autonomous resolution rate for IT requests, integrating Moveworks-based conversational AI [1]. Group 2: Market Sentiment and Analyst Outlook - Social sentiment for ServiceNow rose to 70.7 (Bullish) from a neutral 54.5, influenced by Nvidia's comments and ServiceNow's product launch [1]. - Analysts have a positive outlook, with Needham maintaining a Buy rating and a price target of $155, while Wedbush included ServiceNow in its IVES AI 30 list [1]. - The stock is currently trading at $110.20, down 28% year-to-date, significantly below its 52-week high of $211.48 [1]. Group 3: AI and Revenue Growth - AI Agent Assist consumption grew 55 times since May 2025, indicating strong demand for AI-driven solutions [1]. - The Now Assist annual contract value (ACV) has surpassed $600 million, with a target of reaching $1 billion by 2026, reflecting a price uplift exceeding 30% on subscriptions [1].