Core Insights - ServiceNow (NOW) is set to announce its fourth-quarter 2025 results on January 28, with expected revenues of $3.52 billion, reflecting a 19.2% year-over-year growth [1] - The consensus estimate for earnings per share is 87 cents, indicating a 19.2% increase from the previous year [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for fourth-quarter 2025 subscription revenues is $3.43 billion, suggesting a year-over-year growth of 19.5% on a GAAP basis [6] - Subscription revenues are projected to be between $3.42 billion and $3.43 billion, with constant currency growth estimated at 17.5% to 18% [6] Performance Trends - ServiceNow has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 9.79% [4] - The company’s stock has declined by 41.7% over the past year, which is better than the Zacks Computer & Technology sector's return of 28.4% and the Computers – IT Services industry's decline of 22.6% [12] Strategic Developments - ServiceNow's AI products are expected to exceed $0.5 billion in Annual Contract Value (ACV) in 2025, with a target of reaching $1 billion in 2026 [18] - The acquisition of Veza enhances ServiceNow's security portfolio by focusing on identity security, which is crucial for managing access to sensitive data [18] - The $7.75 billion acquisition of Armis will strengthen ServiceNow's offerings in cyber exposure management and is expected to drive greater AI adoption [19] Partnerships and Integrations - ServiceNow has expanded its partnerships with major companies like NVIDIA and Microsoft, enhancing its AI capabilities and integration with enterprise workflows [10] - The collaboration with NVIDIA has led to the development of Apriel 2.0, which aims to improve AI reasoning and capabilities for enterprises [8] Valuation Insights - ServiceNow's current valuation is considered stretched, with a forward price/sales ratio of 8.73X compared to the sector's 7.32X [15] - The company holds a Zacks Rank 3 (Hold), suggesting that investors may want to wait for a more favorable entry point [20]

Key Takeaways ServiceNow's AI products are on track to hit $1B in ACV by 2026, boosting its enterprise workflow momentum.NOW's acquisitions of Armis, Veza and Moveworks expand its AI, security and identity governance capabilities.Adobe's AI tools like Firefly and Acrobat AI are gaining traction, but face stiff SaaS and AI competition. ServiceNow (NOW) and Adobe (ADBE) leverage software-as-a-service (SaaS) technologies to offer software that helps enterprises in transforming their businesses. ServiceNow, thr ...

Core Insights - ServiceNow (NOW) shares have decreased by 29.9% over the past year, underperforming the Zacks Computer and Technology sector's growth of 25.1% and the Zacks Computers IT Services industry's decline of 19.1% [1][7] - The decline is attributed to a challenging macroeconomic environment and a slowdown in subscription revenue growth [1][7] - The company's fourth-quarter 2025 guidance indicates tightening budgets from U.S. federal agencies, which is expected to negatively impact subscription revenues [1] Subscription Revenue Guidance - ServiceNow has raised its 2025 subscription revenue guidance to between $12.835 billion and $12.845 billion, reflecting a 20% growth on a non-GAAP constant currency basis and 20.5% on a reported basis compared to 2024 [2] - This growth rate is slower than the 23% subscription revenue growth rate achieved in 2024 [2] Valuation and Performance - NOW shares are currently considered overvalued, with a Value Score of F, trading at a forward 12-month price/sales ratio of 9.77X compared to the broader sector's 7.42X [5] - The shares are trading below both the 50-day and 200-day moving averages, indicating a bearish trend [8] AI and Partnerships - ServiceNow's AI products are projected to exceed $0.5 billion in Annual Contract Value (ACV) by 2025, with a target of reaching $1 billion by 2026 [11] - The company has expanded its partner base, including collaborations with NVIDIA and Microsoft, to enhance its AI capabilities and enterprise traction [12][13] Acquisitions - ServiceNow has been actively expanding its portfolio through acquisitions, including Logik.io, data.world, and Moveworks, which enhance its AI and workflow capabilities [16] - The acquisition of Veza strengthens its security and risk management offerings, while the $7.75 billion acquisition of Armis aims to bolster its cyber exposure management capabilities [17] Earnings Estimates - The Zacks Consensus Estimate for NOW's fourth-quarter 2025 earnings is 87 cents per share, indicating a 19.2% growth compared to the previous year [18] - The consensus estimate for 2025 earnings is $3.46 per share, suggesting a 24.5% growth over 2024 [18] - For 2026, the earnings estimate is projected at $4.04, reflecting a 16.6% growth over the 2025 estimate [19] Conclusion - ServiceNow's acquisition-driven portfolio expansion, increasing workflow adoption, and strong partner relationships are expected to enhance top-line growth in 2026 [20] - However, the challenging macroeconomic environment and high valuation remain concerns [20]

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]

Core Insights - Authenticx has launched its AI Agent Assist solution on Salesforce AppExchange, enhancing real-time support for healthcare contact center agents [1][4][10] - The integration provides agents with AI-generated summaries, intelligent prompts, and in-call guidance tailored to the complexities of healthcare conversations [1][3][7] Company Overview - Authenticx specializes in conversation intelligence for healthcare, utilizing AI specifically trained to understand clinical language and patient experiences [2][9] - The platform analyzes millions of customer interactions to provide actionable insights, helping healthcare organizations make data-driven decisions [9] Product Features - The AI Agent Assist solution offers real-time guidance, historical context, and recommended next steps directly within the agent dashboard, improving operational efficiency and patient experiences [3][4][7] - Automated summaries and insights are designed to enhance the speed and focus of agent interactions, ensuring consistent and patient-centered responses [7] Market Context - Salesforce AppExchange is a leading enterprise marketplace with over 9,000 apps and 14 million customer installs, facilitating connections between businesses and customizable solutions [5]