Investment Rating - The report maintains a BUY rating for ServiceNow, indicating a potential return of over 15% over the next 12 months [17]. Core Insights - ServiceNow reported a total revenue increase of 21% YoY to US$3.57 billion in 4Q25, aligning with Bloomberg consensus estimates. Non-GAAP operating income grew by 26% YoY to US$1.10 billion, exceeding consensus by 3% due to AI-enhanced efficiencies and disciplined expense control [1]. - For FY26E, management guided subscription revenue to increase by 20.5%-21% YoY to US$15.53-15.57 billion, with a further 100bps expansion of both non-GAAP operating profit and free cash flow margin to 32% and 36%, respectively, driven by AI-enabled efficiency gains [1]. - The AI product momentum remains strong, with Now Assist annual contract value (ACV) surpassing US$600 million in 4Q25, ahead of the previous target of US$500 million and on track to reach US$1 billion by FY26-end [1]. - The target price for ServiceNow has been lowered to US$215.00 based on a 40x FY26E EV/EBITDA, down from US$236.00 based on a 45x FY26E EV/EBITDA, reflecting sector valuation impacts due to increased competition from AI and LLM service providers [1][12]. Financial Summary - For FY26E, total revenue is projected at US$15.973 billion, with adjusted net profit expected to reach US$4.518 billion, resulting in an adjusted EPS of US$4.36 [2]. - The company’s market capitalization is approximately US$122.22 billion, with a current share price of US$116.73, indicating an upside potential of 84.2% to the target price [3][4]. - The non-GAAP operating profit margin expanded by 1.4 percentage points YoY to 30.9% in 4Q25, attributed to improved efficiency and disciplined expense control [9]. Growth Projections - Subscription revenue is expected to grow by 20.3% in FY26E, with adjusted net profit growth projected at 23.2% [15]. - The company anticipates a revenue growth rate of 20.5%-21% for FY26E, with further growth expected in subsequent years [1][14]. Valuation - The valuation of ServiceNow is set at US$215.00 per share based on a target EV/EBITDA of 40x for FY26E, which is at a premium to the sector average of 29x, justified by the strong earnings growth outlook [12][13].

Core Insights - IBM exceeded earnings expectations with Q4 revenue of $19.69 billion, a 12.1% increase year-over-year, and EPS of $4.52, up 5.4% from expectations [2] - The company's AI strategy is proving effective, with its generative AI business reaching $12.5 billion, more than doubling from the previous year [2][8] - IBM's Software division grew by 14% to $9 billion in Q4, driven by Red Hat and the WatsonX AI platform, while Infrastructure revenue surged 21% to $5.1 billion [2] Financial Performance - IBM's pre-tax margin (Non-GAAP) was 24.1%, slightly down from 24.3% last year, indicating robust profitability [5] - Free cash flow reached $14.7 billion in 2025, with an expected increase to approximately $15.7 billion in 2026 [5] - Revenue growth for 2026 is projected to be "more than 5%", slightly above analyst consensus of 4.6% [6] Strategic Moves - IBM acquired Confluent for $11 billion in December 2025 to enhance its capabilities in integrating real-time streaming data into AI models [7] - The acquisition positions IBM for a transition from "chatbot AI" to "agentic AI," focusing on self-operating AI agents [7] Market Positioning - IBM's model of charging businesses for AI implementation leads to lower risks and higher margins compared to competitors like Meta and Microsoft, which are heavily investing in infrastructure [4] - The market rewarded IBM for demonstrating valid evidence of AI monetization through consulting income rather than deferred commitments [8] Valuation Considerations - IBM's P/E ratio stands at approximately 27.5x, which is considered high given its growth profile and free cash flow generation [9] - Current stock price of $315 reflects significant optimism about future cash flow growth, although it may be seen as expensive compared to competitors [9] Competitive Landscape - IBM is positioned as a leader in enterprise production AI, focusing on secure and regulatory-compliant AI solutions for banks, manufacturers, and governments [11] - Competition exists from Microsoft Copilot, Amazon Bedrock, and Google Gemini in the enterprise AI sector [13]

IBM reported a net income of $5.6bn for the fourth quarter of 2025 (Q4 2025), representing a 93.1% increase from $2.9bn in the same period of the previous year. The company’s revenue for the fourth quarter ended 31 December 2025 was $19.7bn, marking a 12% increase compared to $17.6bn in Q4 2024. For the full year 2025, the company's net income reached $10.6bn, a 76.7% increase compared to $6bn in 2024. IBM's revenue for the full year 2025 reached $67.5bn, an 8% rise compared to $62.7bn in the previous ...

Market Overview - The BSE benchmark increased by 720.56 points, or 0.84 percent last week [1] Company Valuations - Reliance Industries saw its market valuation rise by Rs 45,266.12 crore, reaching Rs 21,54,978.60 crore, maintaining its position as the most valued firm [6] - The market valuation of State Bank of India increased by Rs 30,414.89 crore, bringing its total to Rs 9,22,461.77 crore [6] - Larsen & Toubro's valuation surged by Rs 16,204.34 crore to Rs 5,72,640.56 crore [4] - Hindustan Unilever's market valuation climbed by Rs 14,626.21 crore to Rs 5,51,637.04 crore [4] - HDFC Bank's market capitalisation edged higher by Rs 13,538.43 crore to Rs 15,40,303.87 crore [5] - ICICI Bank's valuation advanced by Rs 3,103.99 crore to Rs 9,68,773.14 crore [5] - Bharti Airtel's market capitalisation increased by Rs 570.21 crore to Rs 12,01,262.53 crore [6] Valuation Erosion - Tata Consultancy Services (TCS) experienced a decline in market valuation by Rs 10,745.72 crore, reducing its total to Rs 11,75,914.62 crore [6] - Infosys saw a decrease in market capitalisation by Rs 6,183.25 crore to Rs 6,81,635.59 crore [6] - Bajaj Finance's market valuation dropped by Rs 5,693.58 crore to Rs 6,16,430.43 crore [6] Overall Market Capitalisation - The combined market capitalisation of seven of the top-10 most-valued firms surged by Rs 1,23,724.19 crore, reflecting an optimistic trend in equities [6]

Benchmark stock index BSE Sensex slipped by 43 points in a volatile trade on Tuesday following profit-taking in IT and pharma shares and mixed global cues.Photograph: Arko Datta/ReutersSnapping the two-day gaining streak, the 30-share BSE Sensex dipped 42.64 points or 0.05 per cent to settle at 85,524.84.During the day, it hit a high of 85,704.93 and a low of 85,342.99.The 50-share NSE Nifty closed marginally up by 4.75 points or 0.02 per cent to 26,177.15.Among Sensex firms, Infosys, Bharti Airtel, Adani P ...

Market Valuation Changes - The combined market valuation of six of the top-10 most-valued firms increased by ₹75,256.97 crore last week, with Tata Consultancy Services (TCS) and Infosys being the largest contributors [1] - TCS's market valuation rose by ₹22,594.96 crore to reach ₹11,87,673.41 crore, while Infosys added ₹16,971.64 crore, bringing its valuation to ₹6,81,192.22 crore [2] - The market capitalization of State Bank of India increased by ₹15,922.81 crore to ₹9,04,738.98 crore, and Reliance Industries saw a rise of ₹12,314.55 crore to ₹21,17,967.29 crore [2] Declines in Valuation - HDFC Bank's market capitalization fell by ₹21,920.08 crore to ₹15,16,638.63 crore, while LIC's valuation decreased by ₹9,614 crore to ₹5,39,206.05 crore [3] - ICICI Bank's market capitalization declined by ₹8,427.61 crore to ₹9,68,240.54 crore, and Bajaj Finance's valuation dipped by ₹5,880.25 crore to ₹6,27,226.44 crore [3] Ranking of Firms - Reliance Industries remains the most-valued firm, followed by HDFC Bank, Bharti Airtel, TCS, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Larsen & Toubro, and LIC [4]

Core Insights - Microsoft has formed partnerships with four major Indian IT companies—Cognizant, Infosys, TCS, and Wipro—to accelerate the adoption of agentic AI [1][3] - These companies will collectively deploy over 200,000 Microsoft Copilot licenses, marking a significant milestone in enterprise-scale AI adoption [2] - Microsoft plans to invest $17.5 billion in cloud and AI infrastructure in India from 2026 to 2029 [2] Microsoft-India Alliance - The collaboration aims to embed AI into core operations, transforming how organizations operate and innovate [3] - Companies are becoming Frontier Firms by redesigning workflows around human-agent collaboration, impacting various functions such as delivery, sales, finance, HR, and customer engagement [3][5] Cognizant's Role - Cognizant is expanding its partnership with Microsoft to make GenAI and Copilots available to millions, enhancing enterprise operations and employee experiences [7] - As "client zero" for Copilot, Cognizant aims to refine AI solutions for greater value and innovation [7] Infosys Initiatives - Infosys is implementing one of the largest Copilot deployments, enhancing productivity and decision-making through AI integration [9] - The collaboration with Microsoft is strategic, shifting Infosys to a human+ agent powered AI-first enterprise [11] TCS Developments - TCS is transforming its Sales, HR, and Finance functions through AI, providing personalized AI coaching to all employees [12] - The partnership with Microsoft supports the digitization of processes and autogeneration of code [12] Wipro's Strategy - Wipro is launching the Microsoft Innovation Hub to advance its Frontier Firm ambition, deploying over 50,000 Copilot licenses [13] - The collaboration focuses on embedding agentic AI across workflows to enhance customer experience and productivity [13][14]

Market Performance - Benchmark indices Sensex and Nifty declined in early trade on December 2, 2025, due to pressure from blue-chip bank stocks and ongoing foreign fund outflows [1][2] - The 30-share BSE Sensex fell by 380.02 points to 85,261.88 during initial trade after reaching a record high in the previous session [1] - The 50-share NSE Nifty decreased by 98.3 points to 26,077.45 [2] Sector Performance - Major laggards from the Sensex firms included HDFC Bank, ICICI Bank, Axis Bank, Adani Ports, Tata Motors Passenger Vehicles, and Eternal [2] - In contrast, gainers included Asian Paints, Bharti Airtel, Infosys, and Bajaj Finance [2] Foreign and Domestic Investment - Foreign Institutional Investors (FIIs) sold equities worth ₹1,171.31 crore on December 1, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹2,558.93 crore [2] Global Market Context - Asian markets showed mixed performance, with Shanghai's SSE Composite index trading lower, while South Korea's Kospi, Japan's Nikkei 225, and Hong Kong's Hang Seng indices were in positive territory [3] - U.S. markets ended lower on December 1, and Brent crude oil prices dipped 0.03% to $63.15 per barrel [3] Recent Trading Activity - On December 1, the Sensex ended 64.77 points or 0.08% lower at 85,641.90 after earlier gains, having reached a record intra-day high of 86,159.02 [3] - The Nifty settled at 26,175.75, down 27.20 points or 0.10%, after climbing to a lifetime high of 26,325.80 during the day [4]

Market Performance - The BSE benchmark fell by 722.43 points, or 0.86%, while the Nifty dropped by 229.8 points, a decline of 0.89% [2][4] - Seven of India's ten most valued companies collectively lost Rs 88,635.28 crore in a holiday-shortened session [4] Company Valuations - Bharti Airtel's market capitalisation decreased by Rs 30,506.26 crore, settling at Rs 11,41,048.30 crore [4] - Tata Consultancy Services (TCS) faced a reduction of Rs 23,680.38 crore, bringing its valuation to Rs 10,82,658.42 crore [4] - Hindustan Unilever's market cap dropped by Rs 12,253.12 crore to Rs 5,67,308.81 crore [4] - Reliance Industries fell by Rs 11,164.29 crore to Rs 20,00,437.77 crore [4] - HDFC Bank saw its market cap decrease by Rs 7,303.93 crore to Rs 15,11,375.21 crore [4] - Infosys' valuation edged down by Rs 2,139.52 crore to Rs 6,13,750.48 crore [4] - ICICI Bank slipped by Rs 1,587.78 crore to Rs 9,59,540.08 crore [4] Gainers - Life Insurance Corporation of India (LIC) gained Rs 18,469 crore, taking its market value to Rs 5,84,366.54 crore [3][4] - State Bank of India (SBI) rose by Rs 17,492.02 crore to Rs 8,82,400.89 crore [3][4] - Bajaj Finance added Rs 14,965.08 crore, reaching Rs 6,63,721.32 crore [3][4] Rankings - Reliance Industries maintained its position as the country's most valued firm, followed by HDFC Bank, Bharti Airtel, TCS, ICICI Bank, SBI, Bajaj Finance, Infosys, LIC, and Hindustan Unilever [3][4]

Market Performance - Benchmark indices Sensex and Nifty ended lower on November 7, 2025, with Sensex declining 94.73 points (0.11%) to 83,216.28 and Nifty dipping 17.40 points (0.07%) to 25,492.30 [1] - During the day, Sensex experienced a significant drop of 640.06 points (0.76%) to 82,670.95 [1] - On November 6, 2025, Sensex had already declined 148.14 points (0.18%) to 83,311.01, while Nifty dipped 87.95 points (0.34%) to 25,509.70 [4] Company-Specific Movements - Bharti Airtel's stock tumbled 4.46% after Singtel sold approximately 0.8% stake for ₹10,353 crore (SGD 1.5 billion) [2] - Other laggards included Tech Mahindra, Trent, Reliance Industries, HCL Tech, Hindustan Unilever, and ITC [2] - Gainers in the market included Bajaj Finance, Tata Steel, Mahindra & Mahindra, and Bajaj Finserv [2] Foreign and Domestic Investment Trends - Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,263.21 crore on November 6, 2025, while Domestic Institutional Investors (DIIs) purchased stocks worth ₹5,283.91 crore [3]