Track market-moving stories before they get noisy

Shares of ServiceNow (NOW -4.99%), a cloud-based enterprise software company, jumped last month as investors shook off their fears that artificial intelligence would eliminate the need for traditional software companies.

Salesforce shares popped 33% in August, according to data from S&P Global Market Intelligence, following strong quarterly results from fellow enterprise software company Salesforce.

Image source: The Motley Fool.

Fears of a "SaaS-pocalypse" were tamed, for now Investors have been skittish about ServiceNow and other software stocks this year, worried that AI will eliminate the need for traditional software. And while some companies are being disrupted, it's not necessarily the case for ServiceNow and its peers.

The best example of this, and what helped ServiceNow stock jump last month, was Salesforce's recent quarterly results. Salesforce's second-quarter revenue rose to $11.3 billion, ahead of consensus estimates, and its non-GAAP earnings per share of $5.90 far outpaced Wall Street's average estimate.

Salesforce's management also issued strong revenue guidance for its full fiscal 2027, with revenue estimates of about $46.3 billion, at the midpoint, representing a nearly 12% increase from 2026.

Adding to the good news for Salesforce -- and by association, ServiceNow -- was the fact that the company's AI "Agentforce" achieved an annualized revenue run rate of $3.9 billion -- up 210% from the year-ago quarter.

That achievement was particularly important for ServiceNow investors because the company has its own AI agents that operate within its software, automating tasks and streamlining workflows. ServiceNow investors hope that if Salesforce can grow its AI agent revenue and fend off AI competitors, ServiceNow may be able to do the same.

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Rising optimism for ServiceNow stock, but volatility is likely In August, Bank of America analyst Tal Liani raised his price target for ServiceNow stock to $150, up from $130, and maintained a buy rating. More recently, an analyst at BTIG Research raised their price target for ServiceNow to $170 from $150, while maintaining a buy rating.

That's provided some additional optimism for ServiceNow shareholders, but the stock will likely remain volatile until investors settle on whether AI will overpower some software stocks. It's a difficult question to answer, and while I personally think companies like ServiceNow can benefit from AI, I understand that it isn't a closed debate just yet.

ServiceNow shareholders will get more insights when the company reports its third-quarter results in late October. But I suspect that ServiceNow and its peers will continue to experience frequent share price fluctuations as investors process the threat of AI in real time. That doesn't mean ServiceNow shares aren't worth owning, but just know it could be a bit of a ride for a little while longer.

8.9.2026 16:34, AMGN, GLW, BE

Index Dow Jones -0,88 % na 52942,87 b. S&P 500 -0,35 % na 7691,61 b. Nasdaq Composite -0,35 % na 26413,63 b.

Nejsledovanější americké indexy se v úvodu obchodují v záporu.

Daří se akciím společnosti Freeport-McMoRan (+6,2 %), Intel (+6,2 %) a Coherent (+5,9 %). Růst zaznamenávají též akcie společnosti Corning (+5,8 %) v reakci na dohodu o rozšíření kapacity po navázání spolupráce se společností Verizon. Jejím cílem je rozšířit širokopásmové připojení a vybudovat celostátní dálkovou síťovou infrastrukturu pro provozovatele rozsáhlých datových center zaměřených na umělou inteligenci.

Naopak ztrácejí akcie Amgen (-7,2 %) poté, co společnost Novartis oznámila, že její lék na kardiovaskulární onemocnění v závěrečné fázi klinického hodnocení neuspěl. Dále klesá Howmet Aerospace (-5,9 %) a ServiceNow (-4,8 %).

Po oznámení o zařazení do indexu S&P 500, které proběhlo v pátek po zavření trhu, rostou též akcie společnosti Bloom Energy (+7,98 %).

Index S&P 500 -0,35 % na 7691,61 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,2 % Zdravotní péče -1,9 % Utility +0,5 % Komunikační služby -0,9 % Reality +0,3 % Finanční sektor -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Freeport-McMoRan (FCX) +6,2 % Amgen (AMGN) -7,2 % Intel Corp (INTC) +6,2 % Howmet Aerospace (HWM) -5,9 % Coherent Corp (COHR) +5,9 % ServiceNow (NOW) -4,8 % Corning (GLW) +5,8 % Intuit (INTU) -4,8 % Lumentum Holdings (LITE) +5,5 % DoorDash (DASH) -4,6 % Zdroj: Bloomberg

Jan Prokeš
Fio banka, a.s.
Prohlášení

Enterprise software names have snapped back over the past month as concerns that AI would erode seat-based revenue eased across the group.

ServiceNow, Inc. has rebounded 64% from April lows, outperforming peers since May but remains 42% below all-time highs. NOW's Q2 results exceeded expectations in subscription revenue, cRPO growth, and AI adoption, with AI ACV surpassing $1B and net new AI ACV up 40% QoQ. However, the stock faces a key technical overhead resistance and the nature of its pullback will determine whether the rally since April is intact or not.

Key Takeaways ServiceNow's Aramco pact expands AI workflow opportunities across more than 50 countries.NOW's AI ACV topped $1 billion in Q2 2026, with net new AI ACV up over 40% sequentially.ServiceNow faces growing AI workflow competition from Salesforce and Microsoft. ServiceNow (NOW - Free Report) announced yesterday that it signed a collaboration agreement with Aramco Digital to advance artificial intelligence (AI)-powered enterprise transformation across the broader Aramco ecosystem. Aramco Digital plans to use the ServiceNow AI Platform to standardize and govern digital workflows across its affiliates, subsidiaries and joint ventures spanning more than 50 countries. The collaboration broadens NOW’s opportunity across AI automation, customer experience, shared services and enterprise resource planning (ERP) modernization. It could also strengthen ServiceNow’s competitive position against Salesforce (CRM - Free Report) and Microsoft (MSFT - Free Report) as enterprises increasingly seek unified platforms for AI governance, workflow automation and business transformation.

The collaboration should deepen ServiceNow’s presence across a large and complex enterprise environment. The ServiceNow AI Platform integrates data, AI, workflows and security across Technology, Core Business, CRM and Industry, and Creator workflows. Its single data fabric and integrated data layer are designed to connect fragmented systems and streamline processes across departments. Wider adoption across the Aramco ecosystem could therefore create opportunities for ServiceNow to attach additional AI, workflow, data, security and automation products as deployments expand across business functions.

ServiceNow’s open architecture could further strengthen its prospects within Aramco’s diverse technology landscape. AI Control Tower is designed to discover, govern and manage AI agents and systems across heterogeneous environments instead of limiting governance to ServiceNow technologies. The company has introduced Action Fabric, which enables NOW and third-party AI systems to securely execute actions through ServiceNow workflows. Context Engine and Autonomous Data Analytics provide governed enterprise information that autonomous agents can use to make decisions and complete tasks. These capabilities could position NOW as a common orchestration layer across Aramco’s multiple applications, AI models and business systems.

The agreement complements ServiceNow’s accelerating AI adoption. ServiceNow AI annual contract value (ACV) crossed $1 billion in the second quarter of 2026, while net new AI ACV increased more than 40% sequentially. Deals containing five or more ServiceNow AI products grew 5.5 times year over year and the number of customers with Agentic AI in production increased ninefold over nine months. Subscription revenues rose 24.5% year over year to $3.88 billion, while current Remaining Performance Obligations (cRPO) and Remaining Performance Obligations (RPO) reached $13.2 billion and $29 billion, respectively. Successful expansion within Aramco could support cross-selling and longer-term subscription commitments.

NOW Faces Tough CompetitionSalesforce is pushing aggressively into areas traditionally associated with ServiceNow. Agentforce annual recurring revenues (ARR) reached $1.5 billion in the second quarter of fiscal 2027, while accounts with agents in production increased 70% sequentially. Notably, Agentforce IT Service already has more than 450 customers, including conversions from ServiceNow. CRM is expanding into back-office and supply-chain automation through Agentforce Ops. Its broader platform architecture combines AI, data, integration and business applications across sales, service, marketing, analytics, supply chain and IT service workflows, giving Salesforce a platform that increasingly overlaps with NOW’s enterprise workflow ambitions.

Microsoft poses a significant challenge through its extensive enterprise AI ecosystem. Agent 365 has nearly 40 million agents registered across tens of thousands of companies, while Microsoft 365 Copilot has more than 30 million paid seats. Dynamics 365 exposes more than 650,000 model context protocol (MCP) actions across sales, finance, supply chain, HR and customer service, enabling agents to operate using existing business data, permissions, security controls and audit trails.

NOW’s Share Price Performance, Valuation & EstimatesShares of ServiceNow have declined 6.7% year to date against the broader Zacks Computer and Technology sector’s 16.8% growth.

NOW’s Stock Price Performance
Image Source: Zacks Investment Research

NOW stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 30.55 compared with the broader sector’s 20.65. ServiceNow has a Value Score of D.

NOW’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for NOW’s earnings is currently pegged at $1.03 per share, unchanged over the past 30 days, suggesting 7.29% year-over-year growth.

ServiceNow stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On the morning of 6 July, an email went out from Asha Sharma, the chief executive of Xbox, to all of the division’s employees around the world. Under the headline “Resetting Xbox”, it announced the most significant restructuring in the history of Microsoft’s console business: 3,200 staff would be laid off throughout the financial year to 2027, and 1,600 of those roles would be eliminated immediately.

An hour later, at studios throughout company, the Teams meeting invites started arriving. “It was a virtual call with our studio manager,” says Anne Barrett, who was laid off from Bethesda Game Studios Austin. “All of our cameras and microphones were turned off so we weren’t able to say anything or react to anything. We were just brought in, told the news and it was like: ‘You guys are going to lose access to your Slack channel.’ So you saw a flurry of goodbye messages before everything was just shut off.”

Motion graphics artist Alyssa Gobelle at a rally against the layoffs at the ZeniMax Online Studios office in Maryland. Photograph: Communications Workers of AmericaThis, it seems, was the routine, at least at studios in North America: a Teams call with a studio head, a prepared statement read, then a warning about Slack (the group messaging app widely used at game development studios). Emails, the staff were told, would be turned off a few days later. “We’re primarily a remote studio, so Slack is the main mode of conversation with our teammates,” says Morgan Goin, who worked at ZeniMax Online Studios. “All through the morning, everyone was sending their goodbyes … ‘Hey, it’s been great working with you. Here’s my contact information. I’ve loved working here. I will miss all of you.’” Then silence.

Bethesda Games Studios and Zenimax Online Studios were unionised in 2024 and both Goin and Barrett are on the bargaining committees for their respective studios, currently in talks with Microsoft. In the US, the Worker Adjustment and Retraining Notification (WARN) act is a federal law that requires companies with 100 or more employees to give its workers 60 days’ notice before major closures or mass staff layoffs. Consequently, affected staff at US studios will be paid until 4 September. Union reps at Bethesda are undertaking a bargaining process with Microsoft to negotiate severance packages and any benefits owed, and is attempting to get at least some affected members re-employed. Rallies are taking place outside studio buildings across North America, with the Bethesda union seeking support from gamers via social media.

Staff say rumours had been circulating about a new wave of lay-offs for several weeks, and that they saw the Bloomberg article on 10 June warning of coming job cuts. “There was an impending sense of doom, and it was like, man, is it going to be us?” says Barrett. “We thought we were safe. I mean, Bethesda Games Studios is Skyrim, it’s Fallout. We have really highly anticipated stuff coming out. We thought that the work we were doing was going to keep us safe. And instead, we got brought into a meeting that was two minutes long, to end, in some cases, decades of career at the company. It was just devastating.”

“I remember, I laughed the whole day because I was in complete disbelief,” Barrett adds. “I was like, there’s no way they’re doing this. That’s how I processed it. Some of my co-workers were just devastated. I mean, breaking down. They did not understand what was going on. We had people who were just in really dark places. I think it hit me probably the next day. I felt like, wow – I just spent seven years doing all this. In college, people called me Bethesda because it was my dream to work here. And that was just … gone.”

‘Our titles have a very well-known visual identity’ … Fallout 76. Illustration: Bethesda Game StudiosThis is what doesn’t get reported with the statistics of mass redundancies: the sheer human cost of it. “I’m very tired, my sleep schedule is all kinds of messed up, my eating has not been great,” says Goin. “I have to ask myself daily: have you had enough food and water? Have you had enough sunlight? When was the last time you took a shower? We’re doing the depression symptoms, that’s what’s happening. I feel like I’m grieving.”

Simon Préfontaine has a similar story. Previously a designer at Bethesda Game Studios Montreal, he is a single father concerned about the future without work, and without the health insurance his job came with. “It’s very stressful,” he says. “I’ve heard of other people who have been laid off for over a year and haven’t been able to find work. I know I’m not the only single parent in the Montreal studio, I know there are people that have health issues.” But as with Goin, it is about more than financial stability. “It might seem like an overstatement or a dramatisation, but I do feel like I went through the stages of grief. You work with these people for years and years and years, and then suddenly you don’t get to see them any more.”

What has been most bewildering to staff is that there seemed to be no structure to the layoffs, no clear reasoning behind who was affected. “I’m on the character art team, and we lost two people who had been there for decades,” says Alex Nguyen, a union bargainer still employed at Bethesda Games Studios Dallas. “They did everything that was asked, they were very passionate, they were great at their jobs. They worked on all this stuff that made our creatures, characters and armour feel real. Outstanding employees. It never made any sense.”

It is likely, after all that, there will be ramifications for games being produced at these studios – including content delays and project cancellations. Id Software, creator of Doom and Quake, lost 136 staff in the cuts – a majority of its workforce. One staff member affected, VFX artist Derek Best, claimed in a LinkedIn post that the developer had been relegated to “support studio size”.

Barrett makes a similar assertion about Bethesda, where the redundancies have been less severe but where key staff have been affected. “I don’t know how you create games at the quality level we were without the institutional knowledge that’s been lost. We have proprietary tech. Our titles have a very well-known visual identity. And when you lose the people who built the tech, when you lose the people who were improving it, you can’t just throw new people at that problem, right? You can’t replace an artist with someone brand new and say: ‘Now replicate what they were doing 15, 20 years ago.’ The company has said that they can do it. I disagree.”

‘My view of the industry has definitely been damaged’ … protesters in Montreal. Photograph: Communications Workers of AmericaNobody knows what happens next. Barrett could only provide a brief statement on how the union’s talks with Microsoft are faring: “Effects bargaining continues with each side exchanging counterproposals. In their counter, the employer has not made enough substantial movement to care for the very real consequences impacted members are facing (loss of employment; loss of income; and disruption of benefits for their families). We (the union) have indicated that we are prepared to work toward an agreement but we cannot accept a proposal where the burden of compromise falls almost entirely on the employees.”

A Microsoft spokesperson provided the following statement on the bargaining process: “Effects bargaining for our union-represented ZeniMax colleagues is under way and on track, and we have offered severance terms comparable to the generous package provided to our non-union represented colleagues, including up to 39 weeks of severance, six months of company-paid Cobra [Consolidated Omnibus Budget Reconciliation Act], and 16 weeks of outplacement support. We are committed to reaching an agreement that supports impacted colleagues as they move forward.”

At least 1,600 more redundancies are coming at Xbox studios as the “reset” of the division continues. During that time, there will likely be mass lay-off events at other large companies in the industry. All of the staff I spoke to echoed a familiar feeling about mainstream games development – that something has gone drastically wrong and that mass redundancies point to a wider malaise. “Publishers have to be prepared for multi-year development cycles,” says Nguyen. “If that cost is too high, or those timelines are too long, then the game needs to scale back in some way. That might mean more indie and AA games and fewer blockbuster titles. What doesn’t work is investing in a long-term game product, and expecting profits on a yearly basis.”

Barrett concurs. “My view of the industry has definitely been damaged,” she says. “There’s been a loss of sight over why AAA games were so valuable to players. It wasn’t just that they were big and shiny. It was that [the studios] had the resources to invest in creativity. What I see now is the same formula over and over and over again. In any entertainment industry, if you do that enough times, people get tired of it. I would love for us as an industry to get back to actually being creative and investing in that creativity.”

ServiceNow Inc (NYSE:NOW) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

On August 31 at 10:08 AM EST, NOW triggered a Power Inflow signal at a price of $144.84. NOW’s price in the opening hour of trading had been mostly stagnant, even dropping slightly prior to the signal. At the time of the signal, and then thereafter, both retail and institutional trading interest in NOW shifted toward the buy side, leading to an immediate rise in the stock price, eventually reaching a post-alert high of $148.76 as of 2:30PM EST. This Power Inflow signal is intended to be a bullish indication of institutional and retail interest, highlighting where traders may be entering the market for the stock.

Understanding the Power Inflow Signal

The Power Inflow alert is a proprietary signal developed and provided by TradePulse. Issued within the first two hours of the trading day, the alert highlights moments when there is a significant shift in order flow, specifically indicating a strong trend toward buying activity. This suggests a higher probability of bullish price movement for the remainder of the trading day, making it a potentially strategic and opportune entry point for active traders.

Order flow analytics examine real-time buying and selling behavior by analyzing volume, timing, and order size across both retail and institutional participants. These insights provide a deeper understanding of price action and market sentiment, allowing traders and institutions to make more informed decisions.

NOW Performance

At the time of the Power Inflow alert, NOW was trading at $144.84. Following the signal:
Intraday High As Of 2:30PM EST: $148.76 (+2.71%)

Today’s Power Inflow alert on NOW illustrates a clear example of how real-time order flow analytics can uncover bullish momentum, particularly during periods when price action appears stagnant or even declining. Traders who bought NOW shortly after the Power Inflow signal could have captured a significant intraday gain, emphasizing the effectiveness of TradePulse’s Power Inflow alert and the advantage of closely monitoring order flow data. These short-term gains further highlight the value of order flow analytics in identifying bullish intraday momentum and potential price reversals.

This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

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CHICAGO--(BUSINESS WIRE)-- #AI--Pricefx, a global leader in pricing intelligence for B2B enterprises, today announced an integration with ServiceNow, the AI control tower for business reinvention, that brings AI-powered deal optimization directly into the ServiceNow AI Platform. This integration combines Pricefx's pricing intelligence with ServiceNow's sales workflows, giving account teams real-time negotiation guidance, win-rate insights, intelligent product recommendations and AI-powered sales agen.

Palantir just staged one of the sharpest recoveries in enterprise software, but the stock still sits below where the year began and trades at a valuation that makes most analysts nervous. The math on what to do next is trickier…

Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) stock is up 43% over the past month, one of the sharpest rebounds anywhere in enterprise software. That kind of run puts the sell question squarely on the table for anyone still holding the stock.

Here’s the wrinkle. Palantir stock was down 3% year to date through Tuesday’s close, so the 43% rip has not fully recovered its 2026 losses. The peer group tells the same story: Salesforce (NYSE:CRM) stock is up 25% over the past month, while ServiceNow (NYSE:NOW) stock is up 28% over the past month. Salesforce shares were down 22% year to date through Tuesday’s close, and ServiceNow shares were down 17% year to date through Tuesday’s close.

For sector context, the iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) is up 16% over the past month to $102.43, while the ETF was down 4% year to date through Tuesday’s close. Software is bouncing as a group.

A Software Rebound Sweeps the Sector Palantir stock’s outsized move traces to rotation back into a beaten-down corner of tech rather than a fresh company-specific catalyst. Palantir carries the highest beta among these large software names, so its bounce is the biggest, but the pattern is broad and IGV’s 16% monthly move confirms the sector setup.

The fundamental backdrop is genuinely strong. Palantir’s Q2 2026 report on August 3 delivered revenue growth of 93% year-over-year, U.S. commercial revenue up 149% year-over-year to $764 million, and adjusted free cash flow of $1.22 billion. Management raised full-year 2026 revenue guidance to between $8.15 and $8.158 billion.

Palantir CEO Alex Karp captured the tone on the call, declaring “Demand for AI sovereignty has now been unleashed… This quarter was otherworldly.” ServiceNow’s Q2 print showed subscription revenue of $3.877 billion, growing 23% year-over-year in constant currency, and Salesforce’s Q1 FY2027 revenue reached $11.13 billion, up 13% year-over-year. The whole group is executing, and buyers came back all at once.

Valuation vs. the Year-to-Date Setup This is where the sell case bites. Palantir stock trades at a trailing P/E of 154x and a price-to-sales ratio of 69x, with a forward P/E of 112x. Salesforce stock trades at a materially lower earnings multiple than Palantir’s, despite posting its own strong AI print.

The case against selling is the year-to-date math. Palantir stock carries the smallest year-to-date (YTD) deficit of the three names discussed, meaning it entered the rebound in better shape and has now traveled the furthest. Salesforce stock is down 22% for the year despite a 25% month, the widest gap in the group. Selling Palantir into this strength still means selling below where the year began.

Analyst positioning on Palantir stock skews constructive, with 19 Buy ratings, 10 Holds, and an average price target of $191.68. The Palantir options market shows a full-chain put/call ratio of 0.61, tilted toward calls rather than heavy hedging.

What to Do With PLTR Stock Here’s the practical answer. Palantir’s 43% monthly move changes that name’s weight in a portfolio even if the investor has done nothing. A Palantir position sized at 5% before the run is closer to 7% now, all else equal, and the risk profile has shifted with it.

Investors may want to check for whether their Palantir stock weight has drifted above intended sizing, and consider trimming back to target rather than making an all-or-nothing call. That approach captures some of the run, respects the valuation stretch, and keeps exposure to the sovereign-AI story that management outlined in Q2.

Traders can watch for signs that the software rebound broadens or fades from here. If Palantir stock keeps outrunning peers while remaining underwater year to date, the position-sizing question will keep resurfacing.

Contact [email protected] for any questions or corrections.

Bain Capital Venture Investors LLC purchased a new stake in ServiceNow, Inc. (NYSE:NOW – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund purchased 1,144,810 shares of the information technology services provider’s stock, valued at approximately $113,656,737. ServiceNow accounts for approximately 0.1% of Bain Capital Venture Investors LLC’s investment portfolio, making the stock its biggest position. Bain Capital Venture Investors LLC owned about 0.11% of ServiceNow at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. Wealth Watch Advisors INC bought a new stake in ServiceNow in the 3rd quarter valued at about $29,000. Kelleher Financial Advisors bought a new stake in ServiceNow in the 3rd quarter valued at about $50,000. Pin Oak Investment Advisors Inc. boosted its holdings in ServiceNow by 20.7% in the 3rd quarter. Pin Oak Investment Advisors Inc. now owns 134 shares of the information technology services provider’s stock valued at $123,000 after purchasing an additional 23 shares during the period. Jupiter Wealth Management LLC bought a new stake in ServiceNow in the 2nd quarter valued at about $154,000. Finally, CBIZ Investment Advisory Services LLC boosted its holdings in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 135 shares during the period. 87.18% of the stock is currently owned by institutional investors.

ServiceNow Stock Up 4.6% NYSE NOW opened at $144.77 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. ServiceNow, Inc. has a fifty-two week low of $81.24 and a fifty-two week high of $194.73. The stock has a market capitalization of $149.69 billion, a PE ratio of 90.48, a PEG ratio of 2.44 and a beta of 0.94. The business has a fifty day moving average price of $112.33 and a two-hundred day moving average price of $106.60.

ServiceNow (NYSE:NOW – Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The business had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period in the prior year, the company earned $0.81 EPS. ServiceNow’s revenue for the quarter was up 24.0% on a year-over-year basis. Equities analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year. Analysts Set New Price Targets A number of analysts have issued reports on NOW shares. CLSA initiated coverage on shares of ServiceNow in a report on Monday, July 20th. They issued an “underperform” rating and a $72.00 price objective for the company. Capital One Financial increased their target price on ServiceNow from $105.00 to $120.00 and gave the stock an “overweight” rating in a report on Tuesday, May 5th. Robert W. Baird increased their target price on ServiceNow from $118.00 to $125.00 and gave the stock an “outperform” rating in a report on Thursday, July 23rd. Jefferies Financial Group reissued a “buy” rating and set a $140.00 target price (up from $135.00) on shares of ServiceNow in a report on Thursday, July 23rd. Finally, KeyCorp reissued an “underweight” rating on shares of ServiceNow in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $144.24.

View Our Latest Report on ServiceNow

Insider Buying and Selling In related news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the completion of the transaction, the director owned 46,690 shares of the company’s stock, valued at $5,864,264. This represents a 3.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is currently owned by insiders.

More ServiceNow News Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow’s recent rally was helped by Salesforce’s strong quarterly results and upbeat outlook, which eased concerns about a “SaaS-pocalypse.” Investors are increasingly viewing AI as an enhancement to existing enterprise workflows rather than a threat to core software platforms. Why ServiceNow Rallied Today Positive Sentiment: Analyst and market commentary highlights ServiceNow’s agentic-AI momentum, including more than $1 billion in AI annual contract value, broader enterprise adoption and potential new monetization opportunities. The company’s AI Control Tower and expanding customer spending are viewed as additional growth drivers. Agentic AI Adoption Boosts NOW’s Growth Prospects Positive Sentiment: Wall Street remains broadly constructive, with ServiceNow receiving Buy or Moderate Buy consensus ratings. The stock has also approached technical buy points, while some analysts have issued targets as high as $150 or substantially higher. Is It Worth Investing in ServiceNow Based on Wall Street’s Bullish Views? Neutral Sentiment: ServiceNow has risen about 70% from its yearly low and remains below its prior peak, creating debate over whether the move represents a new buying opportunity or a temporary rebound. Analysts’ median price target of approximately $134 is below the current trading level, limiting near-term upside based on that measure. Is It a Golden Opportunity to Buy ServiceNow Stock? Negative Sentiment: ServiceNow warned of three maximum-severity vulnerabilities that could allow unauthenticated attackers to execute code or access SQL systems. Although patches and mitigations may limit the financial impact, the disclosures create reputational, customer-retention and execution risks. Three CVSS 10.0 ServiceNow Flaws Negative Sentiment: At an elevated earnings multiple, the stock is vulnerable to profit-taking if AI growth slows. Jim Cramer recommended selling half a position and retaining the remainder, underscoring the sharp rally and the possibility that some optimism is already reflected in the shares. Jim Cramer’s ServiceNow Advice About ServiceNow (Free Report)

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

Further Reading Five stocks we like better than ServiceNow 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?

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Shares of enterprise software giant ServiceNow (NOW +4.54%) rallied 9.2% on Thursday as of 1:26 p.m. EDT.

ServiceNow didn't report any news today, but its close peer Salesforce (CRM +1.57%) reported earnings last night.

Both stocks had been punished earlier this year, as the emergence of agentic AI spurred fears that the new capability would disrupt the software sector, in what has been called the "SaaS-pocalypse." However, Salesforce's outstanding earnings report last night appeared to allay those fears.

Given how depressed software sector valuations had become, it's no surprise that both Salesforce and its peers like ServiceNow are rallying today.

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What SaaS-pocalypse? In its fiscal second quarter ending in July, Salesforce reported revenue growth of 10.8% to $11.35 billion and adjusted (non-GAAP) earnings per share of $5.90, trouncing analyst estimates by a whopping 80%. Salesforce also guided strongly, increasing its full-year fiscal 2027 revenue outlook to $46.25 billion at the midpoint, up by $0.2 billion, while increasing its adjusted EPS outlook to $16.69, up significantly from a prior guide of just $14.09.

Other key performance indicators (KPIs) came in very strong. For one, contracted remaining performance obligations (cRPO), or contracts for future subscription revenue, increased 14%, ahead of current revenue growth. That indicates future revenue could accelerate, as the full-year revenue guidance suggests.

Furthermore, Salesforce discloses AI-related KPIs that suggest its AI-infused offerings are taking off. The company's "Agentforce" features grew its annualized revenue run rate by 210% to $3.9 billion, approaching 10% of this year's revenue guide. Salesforce also discloses something called Agentic Work Units (AWUs), which are individual tasks that a Salesforce agent completes. AWUs were up a whopping 97% quarter-over-quarter -- not year over year, but quarter over quarter.

ServiceNow has also developed several AI-related software offerings, such as its ServiceNow AI Control Tower, which helps run autonomous agents securely, all within the compliance specifications of enterprises across the organization. Therefore, the rapid uptake of Salesforce's agentic offerings bodes well for ServiceNow's as well.

Image source: Getty Images.

ServiceNow and Salesforce should be survivors Both ServiceNow and Salesforce are more than just point software solutions, which may be subject to disruption. Each software company's offerings are really a platform spanning multiple departments and functions within an organization. Therefore, they are less likely to be displaced and more likely to be both utilized by and incorporated into AI agents.

We also saw evidence of this last night, with Salesforce announcing a new combined offering with the leading AI lab Anthropic called "Claudeforce." The offerings will allow users to access Salesforce's enterprise context and data within Claude, while Anthropic's Claude capabilities will also be available within Agentforce and Salesforce's Slack collaboration tool.

The close melding of the two companies suggests that traditional software companies will likely collaborate with new AI labs for win-win outcomes, rather than be disrupted by them.

Buy the Dip or Run: 3 Software Stocks Down 50% Face Their Moment of TruthServiceNow NYSE: NOW Chief Financial Officer Gina Mastantuono said the company sees artificial intelligence as an expansion opportunity rather than a source of budget pressure, citing customer demand for AI-enabled workflow automation and the company’s own reported efficiency gains.

Speaking with Deutsche Bank Software Equity Research’s Brad Zelnick, Mastantuono said ServiceNow’s platform architecture—built around a single data model, architecture and platform—positions the company to help enterprises apply AI across functions including IT, human resources, finance, legal and customer service.

Get ServiceNow alerts:

MarketBeat Week in Review – 07/27- 07/31“In an AI world, autonomous work is more important than ever,” Mastantuono said. She pointed to billions of workflows and trillions of annual transactions on the platform, arguing that ServiceNow has the context, data and governance controls needed to help customers automate more work.

AI Spending and Internal Efficiency Mastantuono acknowledged that businesses are increasing spending on AI tokens and that some companies may be reducing spending in other areas to accommodate those costs. However, she said ServiceNow is not seeing its business crowded out when its products demonstrate rapid value creation.

Is the Market Mispricing ServiceNow's AI Future?She said ServiceNow grew top-line revenue 23% in the second quarter while keeping headcount flat for the year, including the effects of acquisitions. The company expects to generate $500 million of AI-related efficiencies this year, according to Mastantuono.

“We’re seeing a lot of customers lean into a labor pool dollar budget for spend,” she said, describing productivity gains as a source of funding for software investments.

Mastantuono also said ServiceNow’s AI business crossed $1 billion in the second quarter and remained on track for the company’s previously stated $1.5 billion full-year target.

Growth Priorities and Capital Allocation The CFO reiterated that organic innovation remains ServiceNow’s first capital-allocation priority, followed by tuck-in acquisitions and talent acquisitions. She also highlighted the company’s focus on shareholder returns, noting that ServiceNow completed a $2 billion share repurchase in the first quarter and had more than $4 billion remaining under its authorization.

ServiceNow’s long-term growth plan includes AI, security and risk, data and analytics, and customer relationship management. Mastantuono said the company expects its security and risk, data and analytics, and CRM portfolios to each grow more than 25% over a three-year period. The company has also said it expects AI to account for 30% of revenue by 2030.

She said the company’s AI-native bundles offer customers multiple entry points, from basic AI capabilities to its higher-end Prime package. ServiceNow has continued to see price increases of more than 30% for Prime, while other packages have generated uplifts between 20% and 30%, depending on bundling, she said.

Control Tower, Security and Data Mastantuono described ServiceNow’s AI Control Tower as a vendor-agnostic governance layer that can connect to multiple models, hyperscalers, software providers and data sources. She said customers want flexibility rather than dependence on a single AI vendor, while CFOs are seeking tools to manage AI spending and measure return on investment.

Control Tower can help companies monitor spending, governance and controls, including a “kill switch” for AI systems that behave improperly, she said.

In cybersecurity, Mastantuono said ServiceNow’s security and risk business surpassed $1 billion in annual contract value during the third quarter of the prior year. Following the acquisitions of Armis and Veza, she said ServiceNow is now a top-eight security provider globally and can offer customers capabilities spanning detection, alerting, decision-making and remediation.

She added that the acquired businesses exceeded their plans in their first quarter under ServiceNow and helped drive demand for the company’s core security and risk, configuration management database and IT operations management offerings.

Data and analytics is another strategic focus, according to Mastantuono. She said ServiceNow’s Workflow Data Fabric and connectors are intended to let customers use data from across their organizations regardless of where it resides, combining that information with AI, workflow and security tools.

CRM, Customer Use Cases and Public Sector Mastantuono said ServiceNow’s CRM business has surpassed $2 billion and that its acquisition of Logik.ai has expanded its configure-price-quote capabilities. She said the company can offer quote, fulfillment and service functions on one platform.

She highlighted early AI customer deployments, including the City of Raleigh’s use of ServiceNow’s Level 1 specialist. According to Mastantuono, Raleigh achieved 98% accuracy and automated 65% of requests without human intervention within 10 to 15 weeks. In another 12-week pilot, a customer generated more than $5 million in efficiency benefits from one Level 1 specialist use case, she said.

Mastantuono also said ServiceNow sees a growing opportunity in U.S. federal agencies and the broader public sector as organizations modernize systems and pursue AI-driven productivity. The company overachieved its federal plan in the second quarter and entered the second half with a strong pipeline, she said.

Looking ahead, Mastantuono said ServiceNow plans to address a wider range of small and medium-sized businesses with a forthcoming product designed for that market. She also said the company has built six businesses with more than $1 billion in revenue internally, underscoring its continued emphasis on organic innovation.

About ServiceNow (NYSE:NOW)ServiceNow NYSE: NOW is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company's flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ServiceNow just posted a 10% single-day surge on blockbuster AI numbers, but the stock still sits roughly 22% below last year's peak with its analyst target nearly in reach. Whether that combination signals a rare re-entry window or a value…

At $138.43, ServiceNow (NYSE:NOW | NOW Price Prediction) screens as attractive on fundamentals, though the setup favors incremental accumulation over chasing. The stock just jumped 10.04% in a single session and 25.14% over the past month, forcing investors to decide whether the rebound signals a re-rating or a bounce inside a broken chart.

ServiceNow sells the digital workflow platform that enterprises use for IT service management, employee services, customer workflows, and security and AI governance. Its Xanadu and AI Pro platform tier has crossed $1 billion in annual contract value, and management positions the company as the orchestration layer for agentic AI rather than a seat-based application vendor. After a brutal drawdown from last September’s highs, the recovery to $138.43 now sits just above the $142.23 analyst target.

Why the AI Control Tower Story Justifies Paying Up Q2 delivered revenue of $3.987 billion, up 24.01% year over year, with subscription revenue growing 24.5% and a 98% renewal rate. ServiceNow AI ACV crossed $1 billion, agentic deployments increased ninefold in nine months, and deals including five or more AI products grew 5.5x year over year.

Management raised full-year subscription revenue guidance to $15.76 to $15.78 billion and reiterated a 35% free cash flow margin. CEO Bill McDermott called Q2 “exceptional” and said the company is “operating to the Rule of 56, well on our way to the Rule of 60.” With forward earnings around 31x, buyers get 20%+ growth at a multiple well below prior peaks.

Why the Bear Case Still Deserves Airtime The rally has not repaired the damage. Shares remain down 22.05% over the past year and 9.64% year to date. GAAP profitability weakened, with operating income falling 54.75% year over year and net income declining 22.6% as amortization from Moveworks, Veza, and Armis hit the P&L.

Q2 also benefited from U.S. Federal on-premise revenue pulled forward from Q3, and Q3 cRPO faces a $35 million FX headwind. At 79x trailing earnings and 9x sales, any deceleration or hyperscaler-driven gross margin slippage could quickly compress the multiple.

Why Patience Has a Real Cost Here The waiting case rests on two facts. Shares trade near the analyst target, and the 50-day moving average of $110.35 sits well below the current price, meaning technicals are extended. A pullback toward the 200-day of $119.58 would offer a better entry.

Yet 500-plus customers went live on AI Control Tower within six months of launch, and 50% of net new business is non-seat-based. Waiting for a cleaner setup risks missing the re-rating McDermott openly forecasts.

Data Behind the Verdict Shares currently trade at $138.43 against a consensus target of $142.23, implying roughly 3% near-term upside. Of 49 analysts, 10 rate the stock Strong Buy, 34 Buy, 3 Hold, 1 Sell, and 1 Strong Sell. NOW is down 9.64% year to date while the S&P 500 has advanced roughly 9% over the same stretch, leaving a wide relative-performance gap that bulls expect to close.

Incremental Accumulation Framework At $138.43, ServiceNow screens attractively on fundamentals. The AI monetization flywheel is measurable: $1 billion in AI ACV, ProPlus pricing uplifts above 30%, and a $29 billion RPO backlog imply subscription growth stays above 20% through 2027. The path to appreciation runs through Q3 earnings, where a clean beat could push shares back toward the $177 level from a year ago.

The thesis breaks if net new ACV growth decelerates below 20%, if GAAP margin damage from acquisitions persists into 2027, or if enterprise AI budgets consolidate around hyperscalers rather than orchestration layers. Investors weighing entries may prefer scaling in over several tranches rather than committing at a 10% single-day gap.

ServiceNow is one of the cleanest high-growth software balance sheets in the market, and the current price pays for growth without being overpriced.

Contact [email protected] for any questions or corrections.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about ServiceNow (NOW - Free Report) .

ServiceNow currently has an average brokerage recommendation (ABR) of 1.35, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.35 approximates between Strong Buy and Buy.

Of the 46 recommendations that derive the current ABR, 38 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 82.6% and 6.5% of all recommendations.

Brokerage Recommendation Trends for NOW

Check price target & stock forecast for ServiceNow here>>>

The ABR suggests buying ServiceNow, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in NOW?Looking at the earnings estimate revisions for ServiceNow, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $4.07.

Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for ServiceNow. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for ServiceNow.

Beacon Pointe Advisors LLC bought a new stake in shares of ServiceNow, Inc. (NYSE:NOW – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund bought 244,068 shares of the information technology services provider’s stock, valued at approximately $24,231,000.

A number of other institutional investors have also recently added to or reduced their stakes in the business. Millstone Evans Group LLC increased its position in shares of ServiceNow by 400.0% during the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares during the period. CBIZ Investment Advisory Services LLC raised its position in ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 135 shares during the last quarter. Blueline Advisors LLC bought a new stake in shares of ServiceNow during the fourth quarter worth $25,000. Measured Wealth Private Client Group LLC increased its stake in shares of ServiceNow by 560.0% in the fourth quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 140 shares in the last quarter. Finally, AlphaCentric Advisors LLC bought a new stake in shares of ServiceNow during the fourth quarter worth $25,000. 87.18% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth NOW has been the topic of several analyst reports. Evercore reissued an “outperform” rating and issued a $160.00 target price on shares of ServiceNow in a research note on Thursday, July 23rd. Royal Bank Of Canada reiterated an “outperform” rating and issued a $130.00 price objective on shares of ServiceNow in a report on Thursday, July 23rd. BMO Capital Markets raised their target price on shares of ServiceNow from $115.00 to $118.00 and gave the company an “outperform” rating in a research report on Thursday, July 23rd. JPMorgan Chase & Co. increased their price objective on shares of ServiceNow from $145.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, July 23rd. Finally, Citizens Jmp reaffirmed a “market outperform” rating and set a $157.00 target price on shares of ServiceNow in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, thirty-six have assigned a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $144.24.

Check Out Our Latest Analysis on NOW ServiceNow Price Performance NOW stock opened at $144.77 on Friday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The firm has a market capitalization of $149.69 billion, a price-to-earnings ratio of 90.48, a PEG ratio of 2.44 and a beta of 0.94. The firm has a 50 day moving average price of $112.33 and a 200-day moving average price of $106.60. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73.

ServiceNow (NYSE:NOW – Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 EPS for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company had revenue of $3.99 billion during the quarter, compared to the consensus estimate of $3.93 billion. During the same period last year, the company earned $0.81 EPS. ServiceNow’s revenue for the quarter was up 24.0% on a year-over-year basis. Equities research analysts forecast that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Key ServiceNow News Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow’s recent rally was helped by Salesforce’s strong quarterly results and upbeat outlook, which eased concerns about a “SaaS-pocalypse.” Investors are increasingly viewing AI as an enhancement to existing enterprise workflows rather than a threat to core software platforms. Why ServiceNow Rallied Today Positive Sentiment: Analyst and market commentary highlights ServiceNow’s agentic-AI momentum, including more than $1 billion in AI annual contract value, broader enterprise adoption and potential new monetization opportunities. The company’s AI Control Tower and expanding customer spending are viewed as additional growth drivers. Agentic AI Adoption Boosts NOW’s Growth Prospects Positive Sentiment: Wall Street remains broadly constructive, with ServiceNow receiving Buy or Moderate Buy consensus ratings. The stock has also approached technical buy points, while some analysts have issued targets as high as $150 or substantially higher. Is It Worth Investing in ServiceNow Based on Wall Street’s Bullish Views? Neutral Sentiment: ServiceNow has risen about 70% from its yearly low and remains below its prior peak, creating debate over whether the move represents a new buying opportunity or a temporary rebound. Analysts’ median price target of approximately $134 is below the current trading level, limiting near-term upside based on that measure. Is It a Golden Opportunity to Buy ServiceNow Stock? Negative Sentiment: ServiceNow warned of three maximum-severity vulnerabilities that could allow unauthenticated attackers to execute code or access SQL systems. Although patches and mitigations may limit the financial impact, the disclosures create reputational, customer-retention and execution risks. Three CVSS 10.0 ServiceNow Flaws Negative Sentiment: At an elevated earnings multiple, the stock is vulnerable to profit-taking if AI growth slows. Jim Cramer recommended selling half a position and retaining the remainder, underscoring the sharp rally and the possibility that some optimism is already reflected in the shares. Jim Cramer’s ServiceNow Advice Insider Buying and Selling at ServiceNow In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction that occurred on Thursday, August 13th. The stock was sold at an average price of $125.60, for a total value of $188,400.00. Following the transaction, the director directly owned 46,690 shares of the company’s stock, valued at approximately $5,864,264. The trade was a 3.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is currently owned by insiders.

ServiceNow Profile (Free Report)

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

See Also Five stocks we like better than ServiceNow 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?

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Biondo Investment Advisors LLC bought a new stake in ServiceNow, Inc. (NYSE:NOW – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 116,558 shares of the information technology services provider’s stock, valued at approximately $11,572,000. ServiceNow accounts for about 1.4% of Biondo Investment Advisors LLC’s investment portfolio, making the stock its 29th biggest holding.

A number of other hedge funds have also recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of ServiceNow in the 2nd quarter valued at about $9,536,615,000. Vanguard Group Inc. lifted its holdings in shares of ServiceNow by 404.5% in the 4th quarter. Vanguard Group Inc. now owns 101,963,384 shares of the information technology services provider’s stock worth $15,619,771,000 after purchasing an additional 81,752,460 shares during the last quarter. State Street Corp boosted its holdings in shares of ServiceNow by 406.6% during the fourth quarter. State Street Corp now owns 47,896,597 shares of the information technology services provider’s stock valued at $7,337,280,000 after acquiring an additional 38,441,898 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in ServiceNow by 371.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 32,395,663 shares of the information technology services provider’s stock valued at $4,962,692,000 after purchasing an additional 25,517,218 shares during the period. Finally, Geode Capital Management LLC boosted its position in shares of ServiceNow by 404.8% during the fourth quarter. Geode Capital Management LLC now owns 23,512,428 shares of the information technology services provider’s stock worth $3,591,425,000 after buying an additional 18,854,775 shares during the period. Institutional investors and hedge funds own 87.18% of the company’s stock.

Key Headlines Impacting ServiceNow Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150 Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners? Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation ServiceNow Price Performance NYSE:NOW opened at $128.73 on Monday. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. The company has a 50-day moving average of $108.88 and a 200-day moving average of $105.66. The company has a market capitalization of $133.11 billion, a price-to-earnings ratio of 80.46, a PEG ratio of 2.26 and a beta of 0.94. ServiceNow, Inc. has a 52 week low of $81.24 and a 52 week high of $194.73. ServiceNow (NYSE:NOW – Get Free Report) last posted its earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. The business had revenue of $3.99 billion for the quarter, compared to analyst estimates of $3.93 billion. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 EPS. As a group, equities research analysts anticipate that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Insider Buying and Selling at ServiceNow In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the sale, the director directly owned 46,690 shares in the company, valued at approximately $5,864,264. This trade represents a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is owned by corporate insiders.

Analyst Ratings Changes Several research firms have recently issued reports on NOW. DA Davidson set a $170.00 price objective on shares of ServiceNow and gave the company a “buy” rating in a report on Monday, July 20th. CLSA assumed coverage on ServiceNow in a research note on Monday, July 20th. They issued an “underperform” rating and a $72.00 price target on the stock. Bank of America lifted their price objective on shares of ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a research report on Wednesday, August 19th. Guggenheim upgraded shares of ServiceNow from a “neutral” rating to a “buy” rating and set a $125.00 price target on the stock in a report on Wednesday, July 1st. Finally, TD Cowen reissued a “buy” rating and issued a $140.00 price target on shares of ServiceNow in a research note on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $144.24.

Check Out Our Latest Research Report on NOW

About ServiceNow (Free Report)

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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Advisors Capital Management LLC bought a new stake in ServiceNow, Inc. (NYSE:NOW – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund bought 6,781 shares of the information technology services provider’s stock, valued at approximately $673,000.

Other large investors have also made changes to their positions in the company. Millstone Evans Group LLC grew its position in shares of ServiceNow by 400.0% in the fourth quarter. Millstone Evans Group LLC now owns 165 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 132 shares during the period. CBIZ Investment Advisory Services LLC raised its holdings in shares of ServiceNow by 540.0% in the 4th quarter. CBIZ Investment Advisory Services LLC now owns 160 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 135 shares during the period. Blueline Advisors LLC acquired a new position in shares of ServiceNow in the 4th quarter valued at about $25,000. Measured Wealth Private Client Group LLC grew its holdings in shares of ServiceNow by 560.0% during the 4th quarter. Measured Wealth Private Client Group LLC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 140 shares during the period. Finally, Wealth Watch Advisors INC grew its holdings in shares of ServiceNow by 432.3% during the 4th quarter. Wealth Watch Advisors INC now owns 165 shares of the information technology services provider’s stock worth $25,000 after purchasing an additional 134 shares during the period. Hedge funds and other institutional investors own 87.18% of the company’s stock.

Trending Headlines about ServiceNow Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production. The “Client Zero” approach combines ServiceNow’s AI platform with Tech Mahindra’s industry expertise, potentially increasing adoption, automation revenue and measurable customer outcomes. Tech Mahindra and ServiceNow Expand Partnership to Deliver Production-Ready Enterprise AI at Scale Positive Sentiment: Bank of America raised its ServiceNow price target to $150, citing the company’s positioning to monetize artificial intelligence as concerns about AI disruption to traditional software fade. The move contributed to broader bullish sentiment across software stocks. Bank of America Increases ServiceNow Price Target to $150 Positive Sentiment: ServiceNow has gained substantially since its latest earnings report, which beat estimates on both adjusted earnings and revenue. Quarterly revenue increased 24% year over year, reinforcing the view that the company remains a leading enterprise AI and workflow platform. ServiceNow Up 41.1% Since Last Earnings Report Positive Sentiment: ServiceNow was also selected as a CNBC “Final Trade,” providing additional visibility and signaling continued support from some professional investors. Final Trades: ServiceNow, Vertex and Uber Neutral Sentiment: Despite the favorable company news, midday AI buying has been concentrated in government-facing companies such as Palantir and BigBear.ai rather than enterprise software, limiting near-term upside for NOW. How Are Traders Picking the Software Winners? Negative Sentiment: Investors continue to monitor competitive threats from newer AI-native automation platforms, including Serval, as well as ServiceNow’s premium valuation. Those concerns may encourage profit-taking after the stock’s sharp post-earnings advance. Serval Wants To Replace ServiceNow With AI That Builds Enterprise Automation ServiceNow Stock Down 0.8% Shares of NYSE NOW opened at $128.73 on Friday. The stock has a market cap of $133.11 billion, a PE ratio of 80.46, a PEG ratio of 2.28 and a beta of 0.94. ServiceNow, Inc. has a 52-week low of $81.24 and a 52-week high of $194.73. The business has a fifty day moving average of $108.88 and a two-hundred day moving average of $105.74. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.70 and a current ratio of 0.70. ServiceNow (NYSE:NOW – Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. The firm had revenue of $3.99 billion during the quarter, compared to analysts’ expectations of $3.93 billion. ServiceNow had a return on equity of 16.45% and a net margin of 11.34%.The company’s quarterly revenue was up 24.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 EPS. As a group, equities research analysts expect that ServiceNow, Inc. will post 2.24 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth Several research firms recently commented on NOW. Morgan Stanley set a $180.00 price target on shares of ServiceNow in a report on Tuesday, July 21st. Sanford C. Bernstein restated an “outperform” rating and issued a $248.00 price target (up from $236.00) on shares of ServiceNow in a research report on Thursday, July 23rd. Evercore reaffirmed an “outperform” rating and set a $160.00 target price on shares of ServiceNow in a report on Thursday, July 23rd. Bank of America increased their price target on ServiceNow from $130.00 to $150.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, TD Cowen reissued a “buy” rating and issued a $140.00 price target on shares of ServiceNow in a report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating, three have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, ServiceNow presently has an average rating of “Moderate Buy” and a consensus price target of $144.24.

Get Our Latest Research Report on NOW

Insider Buying and Selling In other ServiceNow news, Director Paul Edward Chamberlain sold 1,500 shares of the company’s stock in a transaction on Thursday, August 13th. The shares were sold at an average price of $125.60, for a total value of $188,400.00. Following the transaction, the director directly owned 46,690 shares in the company, valued at $5,864,264. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.34% of the company’s stock.

ServiceNow Company Profile (Free Report)

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

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Cboe data suggests bullish flow in ServiceNow (NOW), with shares up 90c, or 0.7%, near $130.66. Options volume relatively light with 58k contracts traded and calls leading puts for a put/call ratio of 0.53, compared to a typical level near 0.46. Implied volatility (IV30) is higher by 0.1 points near 52.41,and above the 52wk median, suggesting an expected daily move of $4.31. Put-call skew flattened, suggesting a modestly bullish tone.

Friday’s midday bid across AI is concentrated in government-facing names, not enterprise software. Palantir Technologies (NASDAQ:PLTR | PLTR Price Prediction) stock is up 4% to $181.25, clearing a $180 level that traders had been watching. BigBear.ai (NYSE:BBAI) stock is rising 4% to $3.20, moving in sympathy with the leader. Meanwhile, ServiceNow (NYSE:NOW) stock is unchanged/flat at $129.81 as the company’s enterprise workflow business apparently fails to impress today’s traders.

Palantir clearing $180 is the headline, but the more revealing number sits in the year-to-date column. Through Thursday’s close, Palantir stock was down 2% year to date, which leaves Friday’s push looking like reclaimed ground rather than a breakout into new territory.

Government AI Names Get The Bid Palantir and BigBear.ai sell AI and data analytics into federal and allied-government customers, and both stocks are up 4% on the session. ServiceNow sells workflow software into commercial enterprises and is unchanged on the same tape. Sorting by end customer, not by sector, is the useful observation on Friday.

There’s no Palantir company announcement, contract award, filing or analyst action confirmed behind Friday’s move. Instead, $180 had been a psychological threshold market participants were focused on, and today’s tape carried the stock through it. Recent Reddit chatter around Palantir has skewed cautious, with an investing-subreddit thread asking how long the AI valuation cycle can realistically run (we wrote a free handbook on riding a mania without giving the gains back).

Budget math still supports the trade. The FY 2027 President’s Budget requests $58.5 billion for AI investment at the Department of War, including $46 billion for a multi-year sovereign AI Arsenal and $2.3 billion for Maven Smart System and Joint Fires Network. That pipeline is the fundamental case sitting underneath the government AI trade.

Year To Date Numbers Cut The Other Way Palantir stock was up 31% over the past month through Thursday’s close, but was still down 2% year to date through that same close. A month that strong still leaving 2026 underwater shows how much ground was lost earlier in the year.

BigBear.ai stock was down 43% year to date through Thursday’s close, so an identical 4% session means something very different for the two names. ServiceNow stock was down 15% year to date through that same close, and the iShares Expanded Tech-Software Sector ETF was down 4% year to date through Thursday’s close, closely tracking Palantir’s own 2026 result.

Small-cap dynamics drive a different profile at BigBear.ai. That stock trades as an AI and defense proxy that often moves in sympathy with Palantir, but its 2026 drawdown means today’s 4% pop still leaves the name well underwater on the year.

What to Watch Traders may want to watch whether Palantir stock holds the $180 line into Friday’s close, since a slip back below the level would undercut the day’s technical story. ServiceNow’s next scheduled catalyst is its Q3 2026 earnings report on October 21, well past today’s tape.

Investors should size any fresh exposure to Palantir or BigBear.ai shares carefully given each name’s very different 2026 base. A 4% print off a 43% year-to-date drawdown at BigBear.ai is a different setup than a 4% print off a 2% drawdown at Palantir, and the risk profiles diverge accordingly.

Contact [email protected] for any questions or corrections.

B. Metzler seel. Sohn & Co. AG bought a new position in ServiceNow, Inc. (NYSE:NOW – Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 92,987 shares of the information technology services provider’s stock, valued at approximately $9,232,000.

Several other institutional investors also recently modified their holdings of the business. Brighton Jones LLC increased its holdings in ServiceNow by 1.1% in the 4th quarter. Brighton Jones LLC now owns 2,753 shares of the information technology services provider’s stock worth $2,919,000 after acquiring an additional 30 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in ServiceNow by 4.2% during the second quarter. Sivia Capital Partners LLC now owns 837 shares of the information technology services provider’s stock valued at $861,000 after purchasing an additional 34 shares during the last quarter. United Bank boosted its position in ServiceNow by 15.5% during the second quarter. United Bank now owns 1,519 shares of the information technology services provider’s stock worth $1,562,000 after purchasing an additional 204 shares during the period. Riggs Asset Managment Co. Inc. boosted its position in ServiceNow by 2.2% during the second quarter. Riggs Asset Managment Co. Inc. now owns 1,922 shares of the information technology services provider’s stock worth $1,976,000 after purchasing an additional 42 shares during the period. Finally, Nebula Research & Development LLC increased its stake in shares of ServiceNow by 205.1% in the second quarter. Nebula Research & Development LLC now owns 906 shares of the information technology services provider’s stock worth $931,000 after purchasing an additional 609 shares in the last quarter. 87.18% of the stock is owned by institutional investors.

Insider Buying and Selling In related news, Director Paul Edward Chamberlain sold 1,500 shares of the business’s stock in a transaction dated Thursday, August 13th. The stock was sold at an average price of $125.60, for a total transaction of $188,400.00. Following the completion of the transaction, the director directly owned 46,690 shares in the company, valued at $5,864,264. The trade was a 3.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.34% of the stock is currently owned by insiders.

ServiceNow Stock Up 2.0% Shares of NYSE:NOW opened at $129.73 on Friday. The firm has a fifty day moving average price of $108.36 and a two-hundred day moving average price of $105.58. The company has a market cap of $134.14 billion, a price-to-earnings ratio of 81.08, a PEG ratio of 2.24 and a beta of 0.94. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.70 and a quick ratio of 0.70. ServiceNow, Inc. has a one year low of $81.24 and a one year high of $194.73. ServiceNow (NYSE:NOW – Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The information technology services provider reported $0.90 earnings per share for the quarter, topping the consensus estimate of $0.86 by $0.04. ServiceNow had a net margin of 11.34% and a return on equity of 16.45%. The firm had revenue of $3.99 billion for the quarter, compared to analysts’ expectations of $3.93 billion. During the same quarter in the prior year, the firm posted $0.81 earnings per share. The business’s quarterly revenue was up 24.0% on a year-over-year basis. Analysts anticipate that ServiceNow, Inc. will post 2.24 EPS for the current fiscal year.

Analyst Ratings Changes Several analysts have recently issued reports on the stock. Sanford C. Bernstein reissued an “outperform” rating and issued a $248.00 price target (up from $236.00) on shares of ServiceNow in a research report on Thursday, July 23rd. Jefferies Financial Group reiterated a “buy” rating and issued a $140.00 price objective (up from $135.00) on shares of ServiceNow in a research note on Thursday, July 23rd. JPMorgan Chase & Co. boosted their target price on shares of ServiceNow from $145.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, July 23rd. KeyCorp restated an “underweight” rating on shares of ServiceNow in a research report on Tuesday, July 21st. Finally, Citizens Jmp reaffirmed a “market outperform” rating and issued a $157.00 price target on shares of ServiceNow in a report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $144.24.

Get Our Latest Analysis on ServiceNow

Key Headlines Impacting ServiceNow Here are the key news stories impacting ServiceNow this week:

Positive Sentiment: Bank of America raised its price target to $150 from $130 and maintained a Buy rating. The firm said ServiceNow is among the software companies best positioned to monetize AI, helping support a broader software-sector rally. ServiceNow, Adobe, Workday stocks get BofA PT boost Positive Sentiment: ServiceNow expanded its multi-year partnership with Tech Mahindra to help enterprises move AI projects from pilot programs into production-scale deployments. The agreement could increase adoption of ServiceNow’s AI and automation tools and reinforce its positioning as an enterprise “AI control tower.” Tech Mahindra and ServiceNow Expand Partnership Positive Sentiment: Several market commentaries described NOW as an AI beneficiary, citing its recurring-revenue model, enterprise workflow position, and potential for continued earnings growth. Some analysts see further upside if ServiceNow delivers a strong third quarter. ServiceNow: A Clear AI Winner Neutral Sentiment: Television commentators included ServiceNow among their “final trades,” while broader coverage characterized the recent move as part of a rebound in beaten-down software stocks as fears of AI-driven disruption ease. CNBC Final Trades Negative Sentiment: Competitive and valuation risks remain. A Forbes article highlighted an AI startup, Serval, that aims to challenge ServiceNow in enterprise automation, while the stock’s elevated valuation leaves it sensitive to slower growth or disappointing AI monetization. Serval Wants To Replace ServiceNow Negative Sentiment: Separate coverage reported trading pressure following insider selling, which may raise short-term concerns about executive confidence, although TD Cowen reiterated its Buy rating. ServiceNow Trading Down Following Insider Selling About ServiceNow (Free Report)

ServiceNow (NYSE: NOW) is a cloud computing company that builds enterprise software to manage digital workflows and automate business processes. Its offerings are designed to replace manual work and legacy systems with cloud-based, service-oriented applications that support IT operations, customer service, human resources, security response and other enterprise functions.

The company’s flagship product family is the Now Platform, a suite of subscription software and platform services that includes IT Service Management (ITSM), IT Operations Management (ITOM), IT Business Management (ITBM), Customer Service Management (CSM), HR Service Delivery, Security Operations and Asset Management.

Further Reading Five stocks we like better than ServiceNow 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding NOW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for ServiceNow, Inc. (NYSE:NOW – Free Report).

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ServiceNow has surged 50% since my last update, outperforming the benchmark's 8% rise. Despite NOW trading at a 31x forward P/E, a 35% sector premium, I view the valuation as justified. Multi-year catalysts in AI, cloud, and SaaS markets continue to support robust demand and revenue acceleration.

Investors clearly felt some urgency to own ServiceNow (NOW +2.00%) now, and not later, on Thursday. They were reacting to the enterprise software developer's announcement that it had expanded its collaboration with an important overseas business partner. The company's stock closed 2% higher, easily beating the S&P 500 index's 0.1% bump.

Making AI deployment easier That morning, ServiceNow announced it had broadened the scope of its partnership with India-based peer Tech Mahindra. This is in a hot area of tech, too, specifically artificial intelligence (AI). The two companies will offer services to move clients from experimental AI pilot projects to full-scale operational deployments within their businesses.

Image source: Getty Images.

ServiceNow and Tech Mahindra will work with those clients in a number of ways, the American company wrote in a press release, through all stages of this transformation.

In that release, ServiceNow quoted CEO Bill McDermott as saying that "AI only matters when it creates value for people. Tech Mahindra is already turning that vision into business results. With the ServiceNow AI Platform, they're driving significant cost benefits, elevating experiences for 150,000 employees, and optimizing first-level IT support by [roughly] 25%."

Today's Change

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The appeal of new technology Market players notice whenever a vendor leaning hard into AI expands its reach with services related to the technology, so this is a big check mark in ServiceNow's favor.

The company didn't provide any financial details of the expanded arrangement with Tech Mahindra. That's almost beside the point, as ServiceNow's deepening partnership with a major systems integrator in a huge market is sure to be beneficial.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.

Combining ServiceNow's AI Platform with Tech Mahindra's industry expertise to accelerate enterprise-wide automation, AI adoption, and measurable business outcomes across global organizations

, /PRNewswire/ -- Tech Mahindra (NSE: TECHM), a leading global provider of technology consulting and digital solutions to enterprises across industries, and ServiceNow (NYSE: NOW), the AI control tower for business reinvention, today announced an expanded multi-year partnership designed to accelerate how enterprises move from AI pilots to production-scale deployments.

Customer Benefits

By combining Tech Mahindra's global industry, engineering, transformation, and implementation expertise with the ServiceNow AI Platform, the two organizations will partner to help deliver the following customer benefits:

Faster time-to-value with playbooks validated via Tech Mahindra's own ServiceNow deployment: A key differentiator of the partnership is the 'Client Zero' approach, with Tech Mahindra and the Mahindra & Mahindra Group serving as large-scale AI-led enterprise validation environments for ServiceNow before extending proven, repeatable models across the broader customer base. Tech Mahindra has already seen measurable outcomes by unifying its global IT operations with ServiceNow, including handling over 100,000 cases per month across 90 countries. Industry-specific solutions built on the ServiceNow AI Platform: Enabling faster transformation, stronger governance, and cost optimization for manufacturing, telecommunications, banking, financial services and insurance (BFSI), media, and technology enterprises. Ability to quickly move beyond fragmented AI pilots to outcome-led AI programs: Tech Mahindra will significantly scale its global ServiceNow practice while further strengthening its strategic relationship with ServiceNow. Tech Mahindra will also establish a dedicated AI & Innovation Center of Excellence within its ServiceNow practice to accelerate the deployment of AI capabilities – including the ServiceNow AI Control Tower and ServiceNow EmployeeWorks. To help deliver these benefits, Tech Mahindra and ServiceNow will work closely with customers to build transformation roadmaps, strengthen platform adoption, embed governance frameworks, and measure business outcomes across their customer base.

"It takes an ecosystem to reinvent business. We're proud to partner with Tech Mahindra, combining our AI Control Tower with their deep industry expertise to put AI to work at enterprise scale," said Bill McDermott, Chairman and CEO of ServiceNow. "AI only matters when it creates value for people. Tech Mahindra is already turning that vision into business results. With the ServiceNow AI Platform, they're driving significant cost benefits, elevating experiences for 150,000 employees, and optimizing first-level IT support by ~25%. Now we're taking that winning formula to our customers."

"Enterprises are entering a new phase of AI adoption where the priority is no longer experimentation, but trusted execution at scale. To unlock meaningful business value, AI must be embedded into the systems, workflows, controls, and operating models where enterprise work actually happens," said Mohit Joshi, Chief Executive Officer at Tech Mahindra. "Our expanded partnership with ServiceNow brings together platform strength, industry context, AI governance, and transformation capability to help customers operationalize AI responsibly, accelerate productivity, and create measurable outcomes across the enterprise."

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 100 billion workflows running on the platform each year, ServiceNow helps organizations turn fragmented operations into coordinated, autonomous workflows that deliver measurable results. Learn how ServiceNow puts AI to work for people at www.servicenow.com.

About Tech Mahindra

Tech Mahindra (NSE: TECHM) (BSE: 532755) offers technology consulting and digital solutions to global enterprises across industries, enabling transformative scale at unparalleled speed. With 146,000+ professionals across 90 countries, Tech Mahindra provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design, AI & analytics, and cloud & infrastructure services. It is the first Indian company in the world to have been awarded the Sustainable Markets Initiative's Terra Carta Seal, which recognizes global companies that are actively leading the charge to create a climate and nature-positive future. Tech Mahindra is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federation of companies.

For more information on how TechM can partner with you to meet your Scale at Speed™ imperatives, please visit https://www.techmahindra.com

Our Social Media Channels: Facebook, X, LinkedIn, and YouTube

ServiceNow Forward-Looking Statements

This press release contains "forward-looking statements" about the expectations, beliefs, plans, and intentions relating to ServiceNow's expanded partnership with Tech Mahindra. Such statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, ServiceNow's results could differ materially from the results expressed or implied by the forward-looking statements made. ServiceNow undertakes no obligation, and does not intend to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include: (i) delays and unexpected difficulties and expenses in executing the product capabilities and offerings, (ii) changes in the regulatory landscape related to AI and (iii) uncertainty as to whether sales will justify the investments in the product capabilities and offerings. Further information on factors that could affect ServiceNow's financial and other results is included in the filings ServiceNow makes with the Securities and Exchange Commission from time to time.

ServiceNow, the ServiceNow logo, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries.

SOURCE Tech Mahindra

Bank of America is growing more bullish on a group of software companies that it believes are well positioned to benefit from artificial intelligence, helping fuel a broader rally in the sector on Wednesday.

The bank raised its price targets for ServiceNow, Figma, Workday, Adobe and Snowflake, arguing that these companies have shown strong potential to monetize AI.

ServiceNow closed 6.5% higher on Wednesday.

The move reflects a growing shift in investor sentiment toward traditional software companies, which have spent much of the year under pressure from concerns that AI could disrupt their business models and make some software products redundant.

Instead, investors are increasingly betting that companies with deep customer relationships, proprietary data and established enterprise workflows could use AI to expand their products and generate new revenue.

That view helped lift Figma, Workday and Adobe by between 3% and 4% on Wednesday, while the iShares Expanded Tech-Software Sector ETF gained 1%.

Bank of America analyst Tal Liani raised his price target for ServiceNow to $150 from $130 while reiterating a Buy rating.

Liani said ServiceNow is well positioned to benefit from the development of agentic AI, in part because the company has access to historical data and context surrounding how its customers operate their businesses.

ServiceNow's platform helps companies manage workflows ranging from employee onboarding and human resources to other internal business processes.

That gives the company insight into the way organizations perform tasks and make decisions.

Liani believes that knowledge could give ServiceNow an advantage as businesses deploy AI agents capable of performing increasingly complex tasks.

He also pointed to the company's second-quarter performance, noting that ServiceNow exceeded Wall Street expectations for current remaining performance obligations and subscription revenue growth.

Bank of America also raised its targets for several other software companies, including Figma, Workday, Adobe and Snowflake, although Liani said he remains selective about the sector.

Figma was raised to $33 from $30, Workday to $205 from $140, Adobe to $220 from $190, Amplitude from $12 to $14, Snowflake from $330 to $395, among others.

Another factor supporting software stocks is a growing sense that the threat from AI may not be as immediate as investors had feared.

Raymond James analyst Adam Tindle told MarketWatch that recent data points from AI companies such as OpenAI have been "mixed", potentially reducing the pressure on traditional software providers.

The Wall Street Journal reported on Tuesday that OpenAI's revenue rose to $6.7 billion in the three months ended in June, up 18% from the first quarter, while its operating loss widened to $12.3 billion from $9.3 billion.

The figures reportedly disappointed some investors. CNBC also reported on Wednesday that OpenAI CFO Sarah Friar told employees during an all-hands meeting that the company's revenue run rate was up 35% quarter to date.

OpenAI declined to comment.

Tindle said the developments could reduce the "existential perceived threat" that AI could eliminate software-as-a-service businesses such as ServiceNow.

The broader change in sentiment may be more important than any single company's share-price move, Benchmark analyst Yi Fu Lee told MarketWatch.

"What is changing now is that the market is beginning to see improving conviction in the underlying fundamentals and the growing realization that software is becoming a beneficiary of enterprise-AI deployment rather than a victim of AI disruption," he said.

Lee named ServiceNow as his top large-cap software pick, arguing that investors are increasingly rewarding companies with evidence of AI adoption, customer spending and monetization.

"What feels different today is that investors are rewarding companies that are showing tangible evidence of AI adoption, customer spending and monetization."

Cybersecurity is also becoming an increasingly important part of ServiceNow's investment story.

Lee highlighted the company's cybersecurity strategy under Yevgeny Dibrov, who leads its security efforts.

ServiceNow's security and risk business crossed $1 billion in annual contract value last year, providing another potential source of growth as companies seek to manage the security risks created by expanding AI adoption.