When ServiceNow reported its third-quarter earnings in late October, executives emphasized how its focus on agentic AI is paying off in projects, from the launch of AI Experience — a user interface for enterprise AI — to the Zurich platform release, which enables agentic AI to move faster and scale securely. To find out more about ServiceNow’s strategy, CIO Upside interviewed Amit Zavery, the company’s president, chief product officer, and COO. He discussed the roadblocks to agent adoption, scaling method ...

Core Insights - ServiceNow (NOW) and Figma (FIG) utilize SaaS and PaaS technologies to assist enterprises in business transformation, with ServiceNow focusing on AI-powered workflow solutions and Figma on collaborative design-prototyping [1] Group 1: ServiceNow (NOW) Overview - ServiceNow's Workflow Data Fabric is gaining traction, included in 17 of the top 20 largest deals, combining data, analytics, and AI for improved enterprise outcomes [2] - The Zurich platform enhances AI adoption with multi-agentic AI, enterprise-grade security, and autonomous workflows, featuring tools like Build Agent and Developer Sandbox for application development [3] - ServiceNow's partnerships with companies like NVIDIA and Amazon Web Services are enhancing its AI capabilities and data integration solutions [4] - For Q3 2025, ServiceNow anticipates subscription revenues between $3.26 billion and $3.265 billion, reflecting a year-over-year growth of 19.5% at constant currency [5] Group 2: Figma (FIG) Overview - Figma launched four new products at its annual conference, expanding its portfolio and enhancing developer workflows with the Dev Mode MCP server [6] - New features have been introduced to improve user engagement, including integration with ChatGPT for AI-generated diagrams [7] - Figma expects Q3 2025 revenues between $263 million and $265 million, indicating a 33% year-over-year growth, but slower than the 41% growth in Q2 2025 [9] Group 3: Performance and Valuation Comparison - In the last three months, NOW shares decreased by 4.7%, while FIG shares fell by 56.4% [10] - Both NOW and FIG shares are currently considered overvalued, with a Value Score of F [13] - The Zacks Consensus Estimate for NOW's 2025 earnings is $16.82 per share, indicating a 20.8% rise year-over-year, while FIG's estimate is 30 cents per share, reflecting a 108% increase year-over-year [14][15] Group 4: Competitive Landscape - ServiceNow's strong AI portfolio and partner ecosystem are expected to drive its growth, while Figma faces competition from established players like Adobe and Microsoft, which have more advanced AI initiatives [16][17]

Core Insights - ServiceNow (NOW) is set to release its Q3 2025 results on October 29, with expected revenues of $3.35 billion, reflecting a 19.8% year-over-year growth [1] - The consensus estimate for earnings per share is $4.21, indicating a 13.2% increase from the previous year [1] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Q3 2025 subscription revenues is $3.03 billion, suggesting a 20.2% year-over-year growth [6] - ServiceNow anticipates Q3 subscription revenues between $3.26 billion and $3.265 billion, indicating a GAAP growth of 20%-20.5% [6] Customer and Deal Activity - In Q2 2025, ServiceNow secured 40 deals worth over $1 million, with significant contributions from ITSM, ITOM, ITAM, security, and risk [7] - The company ended the reported quarter with 528 customers generating over $5 million in annual contract value (ACV), with a 30% year-over-year increase in customers contributing $20 million or more [8] Market Position and Performance - ServiceNow shares have declined 12.2% year-to-date, underperforming the Zacks Computer & Technology sector, which has returned 25.9% [11] - The company's value score of F indicates a stretched valuation, trading at a forward price/sales ratio of 12.79X compared to the sector's 7.05X [14] Strategic Initiatives - ServiceNow is leveraging AI and machine learning to enhance its solutions, with new collaborations with Microsoft, NVIDIA, and Amazon [17][19] - Recent acquisitions, including Logik.ai and Moveworks, are aimed at expanding CRM and automation capabilities [20] Conclusion - ServiceNow's strong portfolio and partnerships are expected to drive long-term subscription revenue growth, although macroeconomic challenges and valuation concerns persist [21]

Core Insights - ServiceNow (NOW) is experiencing significant growth with its AI Platform, securing 21 deals with five or more Now Assist products in Q2 2025, and over 50% sequential growth in deals including AI Pro Plus across ITSM, CSM, and HR [1][10] Group 1: Enterprise Adoption and Product Offerings - Major enterprises such as Adobe, Aptiv, Visa, EY, ExxonMobil, and Standard Chartered are utilizing ServiceNow AI to enhance sales cycles, service delivery, and operational efficiency [2] - The Workflow Data Fabric is included in 17 of ServiceNow's top 20 deals, combining data, analytics, and AI to deliver faster outcomes for enterprises [3][10] - The new Zurich platform and AI Experience are expected to drive rapid AI adoption through multi-agentic AI development and autonomous workflows [4][10] Group 2: Competitive Landscape - ServiceNow faces intense competition from Atlassian, Salesforce, and Oracle, with Atlassian seeing a 20 times year-over-year increase in AI interactions [6] - Salesforce is expanding its platform adoption by integrating various workflows, while Oracle leverages a strong partner ecosystem to enhance its offerings [7][8] Group 3: Financial Performance and Valuation - ServiceNow shares have declined by 14.8% year-to-date, underperforming the broader Zacks Computer and Technology sector's return of 21.6% [9] - The stock is considered overvalued with a forward price/sales ratio of 12.49X compared to the sector's 6.83X, and it carries a Value Score of F [12] - The Zacks Consensus Estimate for Q3 2025 earnings is $4.21 per share, indicating a 13.2% year-over-year growth, while Q4 2025 earnings are estimated at $4.40 per share, suggesting a 19.9% year-over-year improvement [14]

Core Insights - ServiceNow (NOW) shares have decreased by 16.1% year to date (YTD), underperforming the Zacks Computer and Technology sector which has returned 19.6% [1][9] - The decline is attributed to macroeconomic challenges and competition from companies like Workday, Oracle, and Pegasystems [2][9] - ServiceNow has raised its subscription revenue guidance for 2025 to between $12.775 billion and $12.795 billion, indicating a growth rate of 19.5-20% on a non-GAAP constant currency basis, which is slower than the 23% growth rate expected for 2024 [3][9] Financial Performance - For Q3 2025, ServiceNow anticipates subscription revenues between $3.26 billion and $3.265 billion, suggesting a year-over-year growth of 19.5% at constant currency [7] - The Zacks Consensus Estimate for Q3 2025 subscription revenues is pegged at $3.26 billion, indicating a 20.2% growth from the previous year [7] - The Zacks Consensus Estimate for 2025 earnings is $16.82 per share, reflecting a 20.83% growth from 2024, while the 2026 estimate is $19.84 per share, suggesting a 17.94% growth over 2025 [21][22] Valuation and Market Position - ServiceNow stock is currently trading at a premium, with a forward 12-month price/sales ratio of 12.31X compared to the sector's 6.73X and competitors like Workday at 6.03X and Oracle at 11.56X [10] - The company has a Value Score of F, indicating a stretched valuation at this moment [8] Growth Drivers - ServiceNow's workflows are gaining traction, with significant deals in technology workflows and core business workflows [13][14] - The company has closed 89 deals greater than $1 million in net new annual contract value (ACV) in the reported quarter [14] - The introduction of the AI-powered Zurich platform and partnerships with NVIDIA, AWS, and Cisco are expected to drive growth [9][17][20] Strategic Collaborations - ServiceNow's collaboration with NVIDIA aims to enhance employee support through AI, while partnerships with AWS and Cisco focus on data integration and AI risk management [18][20] - The Workflow Data Fabric is included in many of ServiceNow's largest deals, combining data, analytics, and AI to improve enterprise outcomes [15][19] Investment Outlook - The expanding portfolio, growing workflow adoption, and positive earnings estimate revisions are expected to enhance top-line growth, justifying the premium valuation [23]

Core Insights - ServiceNow, Inc. (NYSE:NOW) is recognized as one of the top fundamental stocks to consider for investment at present [1] - The company launched its new Zurich platform on September 10, which focuses on enterprise security, autonomous workflows, and multi-agent AI development [1] Product Features - The Zurich platform includes new developer tools that enable natural language "vibe coding," allowing employees to create applications through conversational descriptions [2] - Security features in the Zurich release include the Vault Console, designed to locate and protect sensitive data throughout workflows [2] - The platform also introduces agentic playbooks that combine AI with automation to create autonomous workflows, allowing for human intervention when necessary [3] Company Overview - ServiceNow, Inc. is a leading provider of cloud-based software solutions aimed at helping corporations optimize their digital workflows [3]

Core Insights - ServiceNow's Zurich platform enhances AI adoption through multi-agentic AI, enterprise-grade security, and autonomous workflows [1][10] - The company has secured significant deals in technology workflows, with 40 deals over $1 million in Q2 2025, including four exceeding $5 million [1][10] - Subscription revenue guidance for 2025 has been raised to between $12.775 billion and $12.795 billion, indicating a growth of 19.5-20% on a non-GAAP constant currency basis [4][10] Company Developments - ServiceNow's Workflow Data Fabric is included in 17 of its top 20 largest deals, combining data, analytics, and AI for improved enterprise outcomes [2] - The Zurich release features a Build Agent for vibe coding, enabling employees to create applications from natural language prompts, and a Developer Sandbox for collaborative application development [3] - The ServiceNow Vault Console centralizes sensitive data management, while the Machine Identity Console secures API and bot identities [3] Competitive Landscape - ServiceNow faces competition from Pegasystems and Salesforce, both of which are enhancing their AI and data integration capabilities [5][6][7] - Pegasystems is experiencing strong demand for its GenAI Blueprint solution, which aids in designing enterprise workflow applications [6] - Salesforce's Data Cloud platform integrates customer data across its products, facilitating AI application across operations [7] Financial Performance - ServiceNow's stock has declined by 9.7% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 19.8% [8] - The Zacks Consensus Estimate for Q3 2025 earnings is $4.22 per share, reflecting a year-over-year growth of 13.4% [14] - The company's stock is considered overvalued, with a forward 12-month price/sales ratio of 13.31X compared to the sector's 6.94X [13]