ServiceNow (NOW)

Is ServiceNow the AI stock for you? Before investing in $NOW as an AI stock, check our video analysis, earnings coverage, and AI stock report card:

AI Stock Rating:

  • AI stocks list
  • AI investing tips
  • AI investing analysis
  • AI stock guide

AI Sector:

AI Software

Optimistic Target:


Earnings Call

Hear the call ServiceNow NOW AI Stock

NOW's AI Arc:

AI stock ServiceNow (NOW) is at the forefront of integrating artificial intelligence into the workplace, streamlining complex tasks with its GenAI capabilities. The company's Now Assist GenAI and ITOM AIOps services, alongside their Impact AI Accelerators, help businesses rapidly translate AI investments into productivity gains. ServiceNow's AI-driven tools translate technical alerts into plain language, expediting problem resolution and enhancing virtual agent interactions. ServiceNow's EPS trend has surpassed analyst estimates for the past four quarters, with an actual EPS of 3.11 against an estimated 2.79 in Q4 2023, reflecting a surprise percentage of 11.50%. Year-over-year revenue growth of 23.5% to $2.59B in the current quarter comes alongside a forward P/E ratio of 57 and a high enterprise value to EBITDA ratio of 96. It's noteworthy that despite the premium valuation, ServiceNow’s growth momentum in AI, and operational performance metrics may offer a compelling narrative for long-term growth investment.

NOW's Earnings:

The last earnings was full of optimism. Here's a summary of the tone and general outome of the earnings call.

NOW Earnings Highlights:

  • Gen AI drove highest net new ACV of any of their products
  • Working with Visa on AI powered dispute resolution
  • Subscription revenue up 25.5% YoY
  • Customer renewal rate now 99%
  • Operating at the rule of 55 plus

NOW Position:

$NOW is 2.61% of our overall AI portfolio. We first entered ServiceNow on 1/26/24 with an initial entry price of $766.53.