ServiceNow and Fiserv expand strategic commitment to accelerate AI-driven transformation of financial servicesJan 28, 2026 4:10 PM Eastern Standard Time# ServiceNow and Fiserv expand strategic commitment to accelerate AI-driven transformation of financial servicesShare---By scaling ServiceNow AI throughout operations, Fiserv will elevate operational excellence while enhancing resiliency and stability across IT and client experiencesSANTA CLARA, Calif. & MILWAUKEE--([BUSINESS WIRE])-- [ServiceNow](NYSE: NOW) ...

Despite describing ServiceNow as a “resilient” software company, BNP Paribas Exane’s Slowinski cut his price target on the stock to $120 from $186, implying moderate downside from current levels, while maintaining a “Neutral” rating.Shares of the enterprise software firm started the new year on a downbeat note, down 12% on a year-to-date (YTD) basis, extending a slide that weighed on the stock throughout 2025 amid concerns that AI could devastate its business model.ServiceNow is a prominent provider of clou ...

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]

Core Viewpoint - ServiceNow is a key player in the cloud computing sector, focusing on digital workflows and enterprise solutions, and is recognized for its innovative platform that enhances business operations [1] Group 1: Company Performance - In 2025, ServiceNow faced a challenging year with a stock price decline of nearly 28%, despite efforts to strengthen its market position through a high-profile acquisition and significant platform updates [2][3] - The stock's current price is $125.40, reflecting a decrease of 1.91, or -1.50%, with a market capitalization of approximately $130.21 billion [4] - Over the past year, the stock has experienced volatility, reaching a high of $239.62 and a low of $125.03 [5] Group 2: Market Outlook - Mizuho Securities has set a price target of $190 for ServiceNow, indicating a potential price increase of approximately 51.52% from its current trading price [2][6] - The optimistic outlook from Mizuho Securities suggests confidence in ServiceNow's potential for recovery and growth despite the previous year's challenges [5][6] Group 3: Product Innovations - ServiceNow introduced major updates to its platform in 2025, including the Yokohama upgrade that transitioned its AI platform to a more autonomous system, followed by the Zurich upgrade to further enhance capabilities [3]

Core Insights - ServiceNow (NOW) and Adobe (ADBE) utilize software-as-a-service (SaaS) technologies to aid enterprises in business transformation, with ServiceNow focusing on AI-powered workflow solutions and Adobe on creative software and digital experiences [1] Group 1: ServiceNow (NOW) - ServiceNow's workflows, including ITSM, ITOM, ITAM, security, and CRM, are gaining traction, with expectations for AI products to exceed $0.5 billion in annual contract value (ACV) by 2025 and reach $1 billion by 2026 [2] - The company is expanding its partner base with notable names like NVIDIA and Microsoft, and has made strategic acquisitions such as Logik.io and Moveworks to enhance its AI and workflow capabilities [3][4] - The acquisition of Veza strengthens its security and risk portfolios, while the $7.75 billion acquisition of Armis enhances its cyber exposure management capabilities [4] Group 2: Adobe (ADBE) - Adobe is experiencing strong demand for its AI-powered products, including Creative Cloud Pro and Acrobat, and is enhancing user experiences through new conversational interfaces [5] - The company has formed partnerships with major AI ecosystems like AWS and Microsoft, and has added 45 new partners in the last fiscal quarter, expanding its market reach [6] - Adobe targets a 10.2% annualized recurring revenue growth for fiscal 2026, driven by its innovative AI portfolio and expanding enterprise adoption [7] Group 3: Financial Performance and Valuation - In the past 12 months, NOW shares have decreased by 44.3%, while Adobe shares have dropped by 33.6% [9] - NOW is considered overvalued with a Value Score of F, trading at 8.24 times sales, compared to Adobe's Value Score of B and a price/sales ratio of 4.52 [12] - The Zacks Consensus Estimate for NOW's 2026 earnings is $4.03 per share, reflecting a 16.5% increase from 2025, while Adobe's estimate is $23.44 per share, indicating a 12% increase over fiscal 2025 [16][17] Group 4: Competitive Positioning - ServiceNow's robust AI portfolio, strong partner network, and strategic acquisitions provide it with a competitive edge over Adobe, which faces significant competition in the SaaS and AI sectors [18]

Core Insights - ServiceNow has experienced a significant decline in stock performance, with a nearly 28% drop in 2025, reflecting investor skepticism despite positive developments [1][6] - The company's stock split and high-profile acquisition did not generate the expected investor interest, indicating a lack of confidence in the stock [2][7] Financial Performance - In the first quarter of 2025, ServiceNow reported a 19% year-over-year increase in overall revenue, reaching just under $3.1 billion, and net income of $846 million, exceeding analyst expectations [5] - Despite initial positive momentum from earnings, the stock price began to decline in the second half of the year, even after a brief increase following the stock split announcement [6] Product Developments - ServiceNow launched significant updates to its AI-enhanced platform in 2025, including the Yokohama upgrade, which transitioned the platform to more autonomous AI functionalities [3][4] - A subsequent upgrade, named Zurich, was also announced later in the year, further enhancing the platform's capabilities [4] Acquisition Impact - The company announced its largest acquisition to date, the all-cash purchase of cybersecurity firm Armis for nearly $7.8 billion, which raised concerns among investors regarding the valuation [7] - The acquisition is expected to enhance the attractiveness of ServiceNow's platform, particularly in addressing security concerns for clients [9]

SANTA CLARA, Calif.--(BUSINESS WIRE)--ServiceNow (NYSE: NOW), the AI control tower for business reinvention, and OpenAI today announced an enhanced strategic collaboration to power agentic AI experiences and accelerate enterprise AI outcomes. The agreement unlocks a deep collaboration between OpenAI technical advisors and ServiceNow engineers that will be equipped with its frontier models, which will give customers direct access to frontier capabilities, custom ServiceNow AI solutions built and aligned to t ...

Conference Call Details About ServiceNow ServiceNow (NYSE: NOW) is the AI control tower for business reinvention. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise. By unifying legacy systems, departmental tools, cloud applications, and AI agents, ServiceNow provides a single pane of glass that connects intelligence to execution across every corner of business. With more than 75 billion workflows running on the platform e ...

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]

"Moveworks accelerates ServiceNow's vision to put AI to work for people across every corner of every business,†said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow. "With two decades of workflow intelligence built into a single architecture, we're powering the agentic AI operating system for the enterprise. Moveworks' AI Assistant plus ServiceNow's agentic platform will create an AI-native front door that turns conversations into completed work, allowing customers to ...