Key Takeaways NOW is showing stronger growth and execution than Salesforce as enterprises expand digital workflows.NOW closed 103 deals above $1M ACV in Q3 2025, while customers generating over $5M ACV continued to climb.CRM's AI products drove $1.4B in Q3 recurring revenues; overall sales growth has slowed to single digits.Salesforce (CRM) and ServiceNow (NOW) are two of the most important enterprise cloud software companies, helping large organizations modernize operations, automate workflows and manage c ...

Citi likes the “industrial logic” of ServiceNow’s (NOW) acquisition of Armis. The deal adds predictive security features to the company’s AI Control Tower offering, the analyst tells investors in a research note. Citi, however, says the deal is not “transformative,” despite being ServiceNow’s largest ever. It believes the company can continue posting 20% organic subscription growth and keeps a Buy rating on the shares with a $250.60 price target Claim 70% Off TipRanks This Holiday Season Published first ...

ServiceNow, Inc. (NYSE:NOW) is included among the 12 Best Long Term US Stocks to Buy Now. BTIG Initiates ServiceNow (NOW) with Buy Rating on Expanding AI Platform Photo by Viacheslav Bublyk on Unsplash On December 17, BTIG initiated coverage of ServiceNow, Inc. (NYSE:NOW) with a Buy rating and a $1,000 price target. The firm points to how far the platform has come since the launch of Now Assist two years ago. What started as an AI feature has grown into a broader system where humans and AI agents work ...

Core Insights - ServiceNow intends to acquire Veza, an AI-native identity security platform, to enhance its Security and Risk portfolio, emphasizing the importance of identity in modern data breaches [1][2] - The acquisition aims to improve governance over AI agents' access and actions, thereby reducing risks associated with autonomous workflows [2] - Veza's Access Graph will provide visibility into relationships among human, machine, and AI identities, supporting least-privilege governance [1][2] Company Overview - ServiceNow, headquartered in Santa Clara, California, integrates workflows, data, and AI to streamline operations across large organizations, managing tens of billions of workflows annually [3] Acquisition Details - Veza, founded in 2020, serves nearly 150 enterprise customers and employs about 230 people globally; its capabilities will be integrated into ServiceNow's security offerings post-acquisition [2] - The deal is subject to customary approvals and closing conditions [2] Product Impact - The integration of Veza is expected to enhance existing ServiceNow products, including Vulnerability Response, Incident Response, Integrated Risk Management, and AI Control Tower, by providing a stronger identity context for better exposure management and incident response [2]

We came across a bullish thesis on ServiceNow, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on NOW. ServiceNow, Inc.'s share was trading at $822.07 as of December 1st. NOW’s trailing and forward P/E were 98.24 and 39.53 respectively according to Yahoo Finance. Analysts Diverge on GitLab as AI DevSecOps Push Meets Market Uncertainty Copyright: welcomia / 123RF Stock Photo ServiceNow (NOW) has established itself as a leading AI platform for ent ...

Core Insights - ServiceNow, Inc. (NYSE:NOW) is recognized as a leading consumer cyclical stock and plays a significant role in the enterprise AI segment through its AI services [1] - The company has been expanding its partnership with Microsoft, enhancing its AI capabilities and workflow management solutions [2][3] - Despite recent underperformance due to cautious guidance and concerns over client renewals, ServiceNow's AI innovations are gaining traction and supporting its strategic positioning [4] Group 1: Company Overview - ServiceNow, Inc. is a software company focused on streamlining business workflows and integrating AI into its services [1] - The company’s AI Control Tower and Build Agent will now work with Microsoft's AI Foundry, Copilot Studio, and GitHub, marking a significant advancement in its offerings [2] Group 2: Strategic Partnerships - The collaboration with Microsoft allows ServiceNow to provide its business customers with enhanced automation and workflow management while leveraging Microsoft's AI services [2][3] - This partnership aims to connect orchestration and governance across both platforms, enabling organizations to manage intelligent agents effectively [3] Group 3: Market Position and Performance - Columbia Threadneedle Investments noted that ServiceNow underperformed in the last quarter due to cautious guidance and concerns about large client renewals [4] - Despite these challenges, the company’s AI innovations are seen as a key factor in its strategic positioning as a next-generation workflow and AI orchestration platform [4]

Core Insights - Sands Capital's Q3 2025 investor letter indicates a recovery in U.S. large-cap growth equities driven by strong corporate earnings, AI enthusiasm, and expectations for Federal Reserve policy easing [1] - The portfolio achieved a net return of 6.3% in the quarter, underperforming the benchmark's 10.5% gain [1] Company Analysis: ServiceNow, Inc. (NYSE:NOW) - ServiceNow is recognized as the leading provider of enterprise workflow automation software, holding a significant market share [3] - The stock experienced a one-month return of -11.95% and a 52-week decline of 22.92%, closing at $802.72 with a market capitalization of $167.087 billion on November 26, 2025 [2] - Despite concerns over potential government spending cuts and AI disruption, ServiceNow's fundamentals remain strong, with subscription revenue increasing by 22.5% year-over-year and operating margins expanding by 230 basis points [3] - The company reported a 50% year-over-year growth in its AI-enabled Pro Plus product, alongside increased adoption of other AI offerings [3] - In Q3 2025, ServiceNow's subscription revenues reached $3.299 billion, reflecting a 20.5% year-over-year growth in constant currency [4] - The stock is not among the 30 most popular stocks among hedge funds, with 106 hedge fund portfolios holding it at the end of Q2 2025, unchanged from the previous quarter [4]

Core Insights - Microsoft and ServiceNow represent two distinct strategies in enterprise cloud transformation, with Microsoft being a diversified technology giant and ServiceNow focusing on workflow automation and enterprise service management [1] Microsoft Overview - Microsoft reported revenues of $77.7 billion for Q1 fiscal 2026, an 18% year-over-year increase, with significant growth from Microsoft Cloud [2] - The Intelligent Cloud segment generated $30.89 billion, driven by Azure's strong performance, particularly in AI services, which contributed 16 percentage points to growth [4] - Microsoft continues to expand its AI capabilities, launching new features like Work IQ and Agent 365, enhancing customer relationships and lifetime value [5] - Despite strong revenue growth, Microsoft faces challenges, including a net income loss of $3.1 billion and diluted earnings per share of 41 cents due to investments in OpenAI [6] - The competitive landscape is intensifying, with Microsoft facing competition from Google's Gemini and Amazon's cloud services, leading to stock price volatility [7] ServiceNow Overview - ServiceNow reported third-quarter subscription revenues of $3.3 billion, reflecting a 21.5% year-over-year growth, and raised its 2025 subscription revenue guidance [2][8] - The company achieved an operating margin of 33.5%, exceeding guidance, and raised its full-year operating margin targets to 31% [11] - ServiceNow's AI strategy includes the introduction of an AI Control Tower for monitoring AI agents, enhancing enterprise governance and collaboration [10] - The company has expanded strategic partnerships, including with NTT DATA and Nvidia, to accelerate AI-led transformation and broaden its market reach [12] Valuation and Performance Comparison - Microsoft has a price-to-earnings (P/E) ratio of 28.27, slightly below its 5-year historical average, indicating reasonable valuation relative to growth [13] - ServiceNow trades at a forward P/E of 40.95, reflecting expectations for significant earnings acceleration, justified by its superior growth rates and expanding margins [14] - Year-to-date, Microsoft stock has gained 12%, while ServiceNow has declined 23.3%, creating a more attractive entry point for long-term investors [17] Conclusion - ServiceNow offers compelling upside potential for investors interested in cloud software innovation and AI-driven enterprise transformation, with its specialized platform and strong revenue visibility [19]

Core Insights - ServiceNow's subscription revenues have increased by 21% over the trailing nine-month period in 2025 compared to the previous year, driven by growing demand for its workflows [1] - The company raised its subscription revenue guidance for 2025 to between $12.835 billion and $12.845 billion, indicating a growth of approximately 20% year-over-year [2] - ServiceNow shares have underperformed, dropping 17.9% over the past year, while competitors like Oracle and SAP have seen positive returns [3] Subscription Revenue Performance - Subscription revenues account for roughly 97% of ServiceNow's total revenues, reflecting strong demand [1] - The growth rate for subscription revenues in 2025 is expected to be slower than the 23% growth rate seen in 2024 [2] Market Position and Competition - ServiceNow's stock has been affected by challenging macroeconomic conditions and increased competition, particularly from companies like Workday, Oracle, and SAP [3][7] - The stock is currently trading at a premium with a forward 12-month price/sales ratio of 11.7X, compared to the broader sector's 6.91X [8] Customer Growth and Transactions - In Q3 2025, ServiceNow had 103 transactions exceeding $1 million in net new annual contract value (ACV), with six transactions over $10 million [13] - The number of customers contributing over $5 million in ACV reached 553, with a more than 20% year-over-year increase in customers contributing $50 million or more [13] Industry Trends and Partnerships - Net new ACV in transportation and logistics grew over 90% year-over-year, with significant growth also seen in retail, hospitality, and education sectors [17] - ServiceNow's partnerships, particularly with NVIDIA, are enhancing its AI workflow capabilities, which may help mitigate some macroeconomic challenges [18] Earnings Estimates - The Zacks Consensus Estimate for Q4 2025 earnings is $4.35 per share, reflecting an 18.53% growth year-over-year, although it has seen a slight downward revision [19] - Positive trends are noted for 2025 and 2026 earnings estimates, with expected growth rates of 24.21% and 16.66%, respectively [20] Conclusion - ServiceNow's expanding portfolio and growing workflow adoption are expected to enhance top-line growth, despite concerns regarding macroeconomic conditions and valuation [21]

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]