Core Viewpoint - ServiceNow has experienced a decline in stock performance despite the overall tech and AI market surge, with a return of -14% as of October 1 and a 22% drop from its 52-week high [1][2] Company Overview - ServiceNow operates the Now software platform, which helps enterprises digitize and automate workflows, enhancing efficiency and service quality across various departments, including IT, customer service, human resources, and legal [2][3] Financial Performance - Revenue growth for ServiceNow is projected at 20% in 2025, a slight deceleration from 24% in 2023 and 22% in 2024, indicating a strong trajectory as revenue is expected to rise from $9 billion to over $13 billion in two years [6][8] - The company's remaining performance obligation growth was reported at 29% in the last quarter, suggesting sustained revenue growth potential [6] - Analysts forecast an increase in adjusted operating margin to approximately 30.5% in 2025, reflecting an expansion of nearly 100 basis points over 2024 and more than 250 basis points over 2023 [7] - Free cash flow margin is expected to rise to over 32%, up from 30% in 2023 and 31% in 2024, indicating ongoing business improvement [8] Product Development - The introduction of Now Assist, a GenAI-powered add-on, has seen significant uptake, with expectations of achieving $1 billion in annual contract value by 2026, which could enhance revenue growth and competitive positioning [3][9] Market Sentiment and Analyst Ratings - Despite recent declines, analysts maintain a moderate buy rating for ServiceNow, with a 12-month price target of $1,122.20, suggesting a potential upside of 23% from the current price [10][11] - The forward price-to-earnings (P/E) ratio is currently over 50x, down approximately 33% from its peak, indicating a potentially favorable valuation for investors [12]