ServiceNow TodayNOWServiceNow$912.08 -0.35 (-0.04%) 52-Week Range$678.66▼$1,198.09P/E Ratio114.87Price Target$1,122.20Add to WatchlistDespite many tech and artificial intelligence (AI)-driven stocks surging in 2025, ServiceNow NYSE: NOW is a high-profile name that has failed to impress. As of the Oct. 1 close, shares have provided a return of -14%, and are down 22% from their 52-week high. The stock has shown particular weakness recently, down more than 11% in the past three months. This fall makes assessi ...

ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks in the Spotlight This Week. On September 24, Morgan Stanley analyst Keith Weiss upgraded the stock from Equalweight to Overweight with a price target of $1,250.00 (from $1,040.00). The firm upgraded the enterprise software company, citing overblown risks. The analysts noted how ServiceNow has been performing well despite having a volatile backdrop. The company delivered about 20% subscription growth, strong margins, solid cash flow, and also continues to ...

Key Takeaways CRM's AI and Data Cloud ARR hit $1.2B in Q2 fiscal 2026, up 120% year over year.Data Cloud reached $7B, with 140% customer growth and 326% surge in data usage.Agentforce signed 6,000 paid deals, with 60% moving from pilot projects to full production.Salesforce, Inc. (CRM) posted strong results in its AI and Data Cloud businesses. In the second quarter of fiscal 2026, the company's Annual Recurring Revenue (ARR) from AI and Data Cloud reached $1.2 billion, up 120% from last year. During the sec ...

Core Insights - MongoDB's strategic shift towards AI-enabled database solutions is a significant growth catalyst, positioning the company as an intelligent data infrastructure provider for enterprises and developers [1][5] AI Integration and Product Development - The acquisition of Voyage AI has enhanced MongoDB's platform with advanced embedding and reranking models, improving semantic search and reducing AI hallucinations, which are critical for enterprise adoption [2][9] - The integrated approach of MongoDB eliminates the need for multiple database solutions, utilizing a native JSON document structure and embedded AI models to support AI-native application development [3] Customer Growth and Financial Performance - In Q2 of fiscal 2026, MongoDB's customer base grew by approximately 2,800 to 59,900, with high-value accounts increasing by 17% year-over-year to 2,564, contributing to a 24% year-over-year revenue increase to $591.4 million [4][9] - The Zacks Consensus Estimate for Q3 fiscal 2026 anticipates a customer base of 62,000 and revenues of $589.97 million, reflecting year-over-year growth of 11.45% [4] Competitive Landscape - MongoDB faces competition from Snowflake and ServiceNow, both of which are enhancing their platforms with AI integration to broaden workloads and strengthen enterprise engagement [6] Stock Performance and Valuation - MongoDB shares have increased by 40.6% year-to-date, outperforming the Zacks Internet – Software industry and the Computer and Technology sector [7] - The stock is currently trading at a forward Price/Sales ratio of 10.28X, significantly higher than the industry's 5.85X, indicating a valuation concern [11]

Core Insights - Salesforce, Inc. (CRM) reported strong second-quarter fiscal 2026 results with revenues increasing by 10% and non-GAAP EPS rising by 13.7% year-over-year, driven by the adoption of its AI-driven platform, Agentforce [1][10] Group 1: Agentforce Performance - Agentforce has achieved over 6,000 paid deals since its launch three quarters ago, indicating robust demand for AI tools that enhance enterprise workflows [2][10] - 40% of new Agentforce bookings in the second quarter originated from existing Salesforce customers expanding their usage, showcasing strong early adoption [2][3] - There was a 60% increase in customers scaling Agentforce use quarter over quarter, reflecting confidence in the platform's value [3] Group 2: Revenue Growth Potential - The consumption-based model, along with flexible payment options like Flex Credits, is driving demand for Agentforce, which could lead to recurring revenue growth over time [4] - Annualized recurring revenues from AI and Data Cloud have reached $1.2 billion, positioning Salesforce for significant growth if Agentforce adoption continues at the current pace [5] Group 3: Competitive Landscape - Microsoft Corporation (MSFT) and ServiceNow, Inc. (NOW) are also advancing AI automation in the enterprise market, with Microsoft integrating AI features into its Dynamics 365 platform and ServiceNow rolling out industry-specific AI tools [6][7] Group 4: Valuation and Estimates - Salesforce shares have declined by 24.6% year-to-date, contrasting with the Zacks Computer – Software industry's growth of 15.3% [8] - The forward price-to-earnings ratio for Salesforce is 20.81, significantly below the industry average of 32.22, indicating potential undervaluation [11] - The Zacks Consensus Estimate for fiscal 2026 and 2027 earnings suggests year-over-year increases of approximately 11.2% and 11.7%, respectively, with recent upward revisions in estimates [14]

ServiceNow与其他企业服务SaaS厂商一样，已经在垂直行业积累了丰富的数据资源，能够将AI Agent能 力无缝嵌入到企业的工作流程中，从而迅速实现商业化。随着AI Agent市场的发展，企业级应用的商业 化路径日趋明朗。这些企业利用AI技术的自动化能力提升了业务效率，显现出明显的商业化价值。此 类应用不仅能够帮助企业减低成本，还能显著提升效率，满足市场对降本增效的迫切需求。 除此之外，ServiceNow还参与了其他战略合作，比如与LinkedIn合作的广告计划。这些努力不仅为企业 带来了新的收入来源，也提升了品牌的影响力。对于投资者而言，关注AI Agent的爆发增长带来的投资 机遇是一个明智的选择。包括ServiceNow在内的企业服务类SaaS厂商在这种技术浪潮中具备显著的潜 力。 不过需要注意的是，宏观经济的不确定性、政策支持的力度以及技术进步速度的不稳，都可能对市场需 求和竞争环境产生影响。在此背景下，投资者应保持谨慎，密切关注市场动态，调整投资策略，以应对 未来可能出现的风险。 在过去两天里，ServiceNow的股价持续上涨两次，累计升幅达到7.39%。这种势头不仅仅是一种巧合， 而是 ...

Investment Rating - The report maintains an "Overweight" rating for the computer industry, highlighting the potential benefits for enterprise service SaaS vendors from the AI Agent boom [2][3]. Core Insights - The AI Agent market is expected to experience significant growth, with a projected market size increase from $7.84 billion in 2025 to $52.62 billion by 2030, reflecting a compound annual growth rate (CAGR) of 46.3% [3][20]. - The report emphasizes that 2025 is anticipated to be the year of commercial explosion for AI Agents, driven by advancements in large models and the introduction of protocols like MCP and A2A, which facilitate better integration and collaboration within the AI ecosystem [3][20]. - Enterprise-level AI Agents are expected to surpass consumer-level Agents in market share by 2025, as they focus on specific business needs and operational efficiencies [25][27]. Summary by Sections AI Agent Market Overview - AI is transitioning to the L3 intelligent agent era, moving from mere tools to intelligent collaborators that can enhance productivity and efficiency [10][12]. - Major tech companies are rapidly launching AI Agent products, indicating a competitive landscape that is intensifying [15][16]. Enterprise Service SaaS Vendors - SaaS companies are well-positioned to benefit from the AI Agent trend due to their existing data resources and customer bases, allowing for seamless integration of AI capabilities into workflows [27][28]. - Companies like Salesforce and ServiceNow have successfully transitioned AI Agent concepts into revenue-generating products, showcasing clear commercialization paths [31][32]. Key Domestic Companies - Han's Information has pioneered the development of an enterprise-level AI middle platform, significantly increasing its AI-related revenue [43][44]. - Other notable companies include Dingjie Smart and Kingsoft Office, which are also making strides in the AI Agent space, indicating a growing domestic market [28][30]. Investment Strategy - The report suggests focusing on enterprise service SaaS vendors that emphasize scenario attributes, as they are likely to be the first to benefit from the AI Agent wave [27][30].

Core Insights - ServiceNow has experienced significant revenue growth, increasing from approximately $5.9 billion in 2021 to nearly $11 billion in 2024, with net income reaching $1.66 billion and gross margins of almost 79% [3][12] - Despite this growth, ServiceNow's stock has only appreciated by about 6.8% over the past year and is down nearly 17% year-to-date, raising concerns about its high valuation compared to competitors [3][4] - The company's price-to-earnings (P/E) ratio has decreased from over 170x to around 110x, yet it remains significantly higher than competitors like Microsoft and Oracle [4][12] Revenue and Profit Growth - ServiceNow's revenue has grown by nearly $5 billion over the past four years, with trailing twelve-month earnings reaching $1.66 billion and free cash flow of $3.85 billion [3][12] - The company reported $3.22 billion in revenue for Q2 2025, reflecting a 21% year-over-year increase, surpassing expectations [7] Competitive Landscape - ServiceNow's growth is beginning to slow, with subscription revenue growth tempered compared to competitors like Microsoft Azure (39% growth) and Google Cloud (32% growth) [7] - The company's AI strategy, including "Now Assist" tools, faces competition from Microsoft and Salesforce, which are integrating AI into their platforms in more user-friendly ways [8] Economic and Market Challenges - Broader economic pressures, including inflation and stricter corporate budgets, pose risks to enterprise IT spending, which could impact ServiceNow's subscription model [9][12] - Historical performance indicates that ServiceNow's stock has been volatile during economic downturns, with a notable 51% decline in 2022 [11][13] Valuation Concerns - The current valuation of ServiceNow at almost 110x trailing earnings raises questions about sustainability, especially as growth rates may be challenging to maintain amid increasing competition and macroeconomic risks [12][14] - Even slight disappointments in areas such as AI adoption or subscription renewals could lead to significant stock declines [12]

Core Viewpoint - ServiceNow's stock has declined 18.2% year to date, attributed to macroeconomic pressures and tightening budgets, while the broader Computer & Technology sector has appreciated 13.8% during the same period [1][2]. Group 1: Financial Performance - ServiceNow's subscription revenue rose 22.5% year over year to $3.11 billion in Q2 2025, driven by its AI-driven platform [5][8]. - The Zacks Consensus Estimate for Q3 2025 earnings is $4.22 per share, indicating a 13.44% increase over 2024, with revenues expected to grow 19.88% to $3.35 billion [12]. Group 2: AI Strategy and Partnerships - ServiceNow has developed a broad AI ecosystem anchored by its AI Control Tower, enhancing its enterprise AI capabilities [5]. - The partnership with NVIDIA on the Nemotron large language model expands reasoning capabilities and has resulted in significant deals, including a $20 million Now Assist agreement [6][7]. - Acquisitions like data.world and Logik.ai bolster ServiceNow's data governance and configure-price-quote capabilities, respectively, positioning the company as a central platform for enterprise AI operations [7][9]. Group 3: Market Dynamics and Competition - ServiceNow is facing tighter budgets and longer procurement cycles, which are slowing deal closures and creating execution risks [13][15]. - The federal segment is under pressure due to budget constraints, impacting near-term growth visibility despite new customer additions [14]. - Competition is intensifying, particularly from Salesforce and Microsoft, necessitating ServiceNow to demonstrate differentiation in its AI offerings [15][18]. Group 4: Customer Metrics - ServiceNow ended Q2 with 528 customers generating over $5 million in annual contract value, with a 98% renewal rate indicating strong customer satisfaction [11].

Investment Rating - The report maintains an "Outperform" rating for ServiceNow (NOW.N) [6][4]. Core Insights - ServiceNow's subscription revenue for Q2 2025 reached $3.113 billion, reflecting a 21.5% year-over-year growth, exceeding guidance by 2 percentage points [1][9]. - The company has seen a significant increase in large clients, with 528 customers contributing over $5 million in Annual Contract Value (ACV) [1]. - The integration of AI products, particularly in CRM, is expected to drive long-term growth opportunities [4]. Revenue and Profitability - For Q2 2025, ServiceNow achieved total revenue of $3.215 billion, a 22.38% increase year-over-year, with subscription revenue contributing $3.113 billion [9]. - The company reported a non-GAAP operating margin of 29.5%, surpassing guidance by 2.5 percentage points, and a free cash flow margin of 16.5%, up 3 percentage points year-over-year [1][17]. - The current remaining performance obligations (cRPO) reached $10.92 billion, reflecting a 21.5% year-over-year growth, also exceeding guidance [19]. Market Demand and Order Growth - The demand for AI solutions is robust, with net new ACV for ITAM Now Assist increasing nearly sixfold quarter-over-quarter [2]. - The transportation and logistics sectors showed exceptional performance, with net new ACV growth exceeding 100% year-over-year [2]. - The company achieved a 98% renewal rate, indicating strong customer retention [2]. Financial Forecasts - The report projects subscription revenue for 2025 to be between $12.775 billion and $12.795 billion, up from previous estimates of $12.64 billion to $12.68 billion [3][19]. - Expected revenue growth rates for 2025-2027 are 21%, 21.5%, and 21.7%, respectively, with net profits projected at $2.007 billion, $2.911 billion, and $4.013 billion for the same period [4][30]. - The report anticipates a subscription gross margin of 83.5% and an operating margin of 30.5% for 2025 [3]. Valuation Metrics - The current stock price corresponds to price-to-sales (P/S) ratios of 15, 12, and 10 for 2025, 2026, and 2027, respectively [4]. - The report indicates a projected price-to-earnings (P/E) ratio of 100.4 for 2025, decreasing to 50.2 by 2027 [30].