Core Insights - ServiceNow has signed a three-year agreement with OpenAI to utilize its artificial intelligence models for enhancing business operations [1] - The partnership will involve the integration of GPT-5.2 into ServiceNow's enterprise workflow platform, along with the development of AI voice technology [1] - Financial details of the agreement have not been disclosed by either company [1] Company Overview - ServiceNow is focusing on leveraging advanced AI capabilities to improve its service offerings and operational efficiency [1] - OpenAI continues to expand its influence in the enterprise sector through strategic partnerships with companies like ServiceNow [1] Technology Integration - The integration of GPT-5.2 is expected to enhance the functionality of ServiceNow's platform, providing businesses with advanced AI agents [1] - The development of AI voice technology signifies a move towards more interactive and user-friendly enterprise solutions [1]

Core Viewpoint - ServiceNow's stock price has experienced a significant decline, reaching its lowest level since November 2023, marking a prolonged downturn with five consecutive weeks of losses [1] Group 1: Stock Performance - The stock has been in a strong freefall over the past few months [1] - It has recorded its longest losing streak in five weeks [1]

SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, and OpenAI today announced an enhanced strategic collaboration to power agentic AI experiences and accelerate enterprise AI outcomes. The agreement unlocks a deep collaboration between OpenAI technical advisors and ServiceNow engineers that will be equipped with its frontier models, which will give customers direct access to frontier capabilities, custom ServiceNow AI solutions built and aligned to t ...

格隆汇1月20日｜ServiceNow盘前涨超4%。消息面上，OpenAI与ServiceNow达成协议，在商业软件中使 用人工智能代理。 ...

Group 1 - The AI model maker and business-software provider have signed a three-year agreement [1] - This partnership highlights the increasing integration of AI agents into corporate software solutions [1]

Core Viewpoint - Adobe Inc. (NASDAQ:ADBE) is facing significant challenges in the competitive landscape of productivity software, particularly due to the rise of AI technologies, which has led to a 32% decline in its stock price over the past year [2]. Group 1: Company Performance - Adobe's shares have decreased by 32% over the last year, indicating struggles in maintaining its market position [2]. - The company's software-as-a-service model is under threat from AI advancements, which has raised concerns about its growth potential [2]. - Goldman Sachs set a price target of $290 for Adobe shares and issued a Sell rating, highlighting competition as a major concern for high-end user growth [2]. Group 2: Analyst Opinions - Oppenheimer downgraded Adobe's rating from Outperform to Market Perform, citing the impact of AI on software stock valuations [2]. - Jim Cramer discussed insights from Ben Reitzes and Mellius Research regarding Adobe's challenges and competition in the market [3]. - There is a belief among some analysts that other AI stocks may offer better investment opportunities with higher returns and lower risks compared to Adobe [3].

Summary of ISG Global Index Call - Q4 2025 Company and Industry Overview - The call was hosted by Information Services Group (ISG), focusing on the IT and business services industry, which influences $200 billion of technology spending annually [5][11] - The ISG Index measures the health and growth of the technology industry, including managed services and cloud-based software and infrastructure services [11] Key Insights and Arguments Market Performance - The Americas led market growth in 2025, crossing $23 billion in managed services ACV for the first time, driven by strong ITO activity and a rebound in BFSI [12] - EMEA saw a 20% increase in ACV for engineering services, with cloud demand accelerating and deal sizes expanding [13] - The global combined market reached $34.3 billion in ACV in Q4 2025, marking a 16% year-over-year increase and the fourth consecutive quarter above $30 billion [14] - The as-a-service market grew 29% globally in 2025, while managed services grew only 1.3% [14][15] Segment Performance - SaaS accounted for 66% of the total combined market, with significant growth in cloud, software, and consumption-based services [15] - Managed services faced constraints due to fewer mega-deals and pricing pressure, with a slight decline in Q4 2025 [15][16] - Engineering services were the fastest-growing segment, with a 35% increase in ACV year-over-year, driven by large integrated multinational providers [21] - BPO generated over $2 billion in ACV in Q4 2025, up 13% year-over-year, but faced annual declines [24][25] Regional Insights - The Americas generated $23.5 billion in managed services ACV in 2025, up 9% from 2024, while EMEA's managed services ACV totaled $16.7 billion, down 1.4% [28][30] - Asia Pacific struggled, with managed services ACV down 27% year-over-year, primarily due to a decline in the smallest deal category [31] Future Outlook - For 2026, managed services growth is forecasted at 2.1%, while as-a-service is expected to grow by 20% [54] - Enterprises are navigating macroeconomic uncertainties, but investments in AI and cloud infrastructure are expected to continue [54] - The demand for AI-driven outcomes and flexible commercial models will shape the future of the outsourcing market [55] Additional Important Insights - The engineering segment showed strong growth across various sectors, with EMEA leading in ER&D spend, up 86% for the year [22] - AI is now a dominant driver of growth, with hyperscaler investments significantly impacting the market [13][41] - The BPO market is in a reset mode, with uneven growth concentrated in specific functions and industries, particularly industry-specific BPO [26][84] - The call highlighted the importance of AI in transforming traditional outsourcing models, with a focus on hyper-personalization and domain-led transformation [84] This summary encapsulates the key points discussed during the ISG Global Index call, providing insights into market performance, segment growth, regional dynamics, and future outlooks in the IT and business services industry.

Core Insights - The integration between authID and ServiceNow aims to enhance identity verification at contact centers, thereby protecting accounts and reducing fraud [1][2][5] - The collaboration secures over 8,400 ServiceNow-powered contact centers globally, including 85% of Fortune 500 companies [1] Group 1: Integration Features - authID's solutions, including ProofTM, VerifiedTM, and PrivacyKeyTM, integrate with ServiceNow to provide a secure and interactive user experience for both workforce and consumer use cases [3] - Contact center agents can utilize SMS or email notifications to verify user identities before making account changes or completing high-risk transactions [3][4] Group 2: Business Impact - The integration is designed to accelerate business transformation by ensuring that agents perform account updates on behalf of trusted users, thereby enhancing user experience [5] - As a Build Partner in the ServiceNow Partner Program, authID develops applications that enhance the capabilities of the ServiceNow AI Platform [5] Group 3: Company Overview - authID specializes in biometric identity authentication, ensuring enterprises can accurately verify user identities with a False Positive Rate of 1 in 1 billion [6] - The company's IDX platform secures a distributed workforce and provides a comprehensive solution to prevent fraud, account takeovers, and other security risks [6]

Summary of the Conference Call on US Software Industry Outlook for 2026 Industry Overview - The conference call focuses on the US Software industry, particularly the impact of AI on budgets and spending trends for 2026 [1][3][5]. Key Insights and Arguments 1. **Budget Growth and IT Spending**: - The 4Q25 CIO Survey indicates a significant acceleration in IT budget growth, with expectations of a +3.3% increase over the next 12 months, up from +1.9% in the previous quarter [3][18]. - There is a strong likelihood of a budget flush at the end of 2025, which is expected to positively impact companies like ServiceNow (NOW) and HubSpot (HUBS) [18][11]. 2. **AI Demand and Capacity**: - Demand for AI capabilities is anticipated to outpace current capacity, with a focus on scaling AI solutions within enterprises [5][23]. - The year 2025 was characterized by experimentation with AI, and 2026 is expected to see significant expansion in use cases that deliver high ROI [5][23]. 3. **Company Ratings and Growth Drivers**: - Zoom (ZM) and Palantir (PLTR) have been upgraded to Buy ratings due to improved growth visibility and strong catalysts [6][8]. - ZM is projected to achieve over 5% top-line growth, driven by its Contact Center and Custom AI Companion, while PLTR is expected to see a +51% year-over-year revenue growth, primarily from the US Commercial sector and government spending [8][9]. 4. **Market Dynamics and Risks**: - Despite the positive outlook for AI, there are ongoing concerns regarding the terminal value of application software, which may continue to pressure valuations [4][29]. - The software market is experiencing significant disruption risks from AI, particularly affecting traditional application vendors [29]. 5. **Investment Priorities**: - Data Analytics, Generative AI, and Data Warehousing have become the top investment priorities, reflecting the shift towards AI-driven solutions [18][26]. - Companies like Snowflake (SNOW), MongoDB (MDB), Microsoft (MSFT), and Oracle (ORCL) are favored for their AI capabilities and consumption models [26]. Additional Important Points - **Performance Metrics**: - The performance of various software companies in 2025 showed significant disparities, with PLTR achieving 147% sales growth, while others like HubSpot (HUBS) faced a decline of 43% [12][46]. - The overall sentiment indicates that while some companies are positioned well for growth, others are struggling with multiple compression and lower growth expectations [45][47]. - **Future Expectations**: - The environment for 2026 is expected to remain volatile, with a focus on growth in value, cyclical, and small/mid-cap names [30]. - Anticipated rate cuts in 2026 may positively impact software investments, particularly in AI, due to lower borrowing costs [34]. This summary encapsulates the key themes and insights from the conference call, highlighting the evolving landscape of the US Software industry as it adapts to AI advancements and changing budget dynamics.

Core Viewpoint - ServiceNow has been downgraded by Goldman Sachs from Buy to Sell, with the stock price at $141.80 at the time of the announcement [1][5] Company Performance - The current stock price of ServiceNow is $141.80, reflecting a decrease of 3.00% or $4.39 [3] - Over the past month, ServiceNow's stock has declined by 15.7%, contrasting with the Zacks S&P 500 composite's increase of 1.2% [2][5] - The stock has fluctuated between a low of $141.43 and a high of $147.35 during the trading day [3] - Over the past year, the stock has ranged from a low of $135.73 to a high of $239.62, indicating significant volatility [3] Market Position - ServiceNow's market capitalization is approximately $147.16 billion, highlighting its substantial presence in the market [4] - The trading volume for the day reached 11.73 million shares, indicating active investor interest [4] - Despite the downgrade, ServiceNow remains a focal point for investors, ranking among the most searched stocks on Zacks.com [2][5]