In the latest trading session, ServiceNow (NOW) closed at $107.93, marking a +1.51% move from the previous day.
Many analysts now believe ServiceNow (NYSE:NOW | NOW Price Prediction) is mispriced.
ServiceNow is demonstrating outstanding performance and expects that to continue in the near term. The market has been worried that agentic AI could negatively impact its opportunities.
NOW's AI Control Tower demand supports long-term growth, but premium valuation, acquisition integration costs and margin pressure warrant caution.
ServiceNow (NOW) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
NOW is expanding its AI-powered security business through partnerships and acquisitions, strengthening its platform for long-term enterprise growth.
ServiceNow NOW and Salesforce shares climbed 4% on Wednesday after Guggenheim upgraded the software companies, arguing that their valuations have become attractive despite ongoing risks posed by artificial intelligence. The upgrade comes after a difficult year for enterprise software stocks, with investors reassessing growth prospects as AI reshapes the industry.
A Guggenheim analyst says that valuations for the two software stocks are too depressed, even though the AI threat is real.
Earlier this month, ServiceNow (NYSE:NOW | NOW Price Prediction) and IBM (NYSE:IBM) announced an expanded multi-year collaboration to make legacy enterprise systems “AI-ready,” integrating watsonx.data, Red Hat Ansible, Instana, HashiCorp Terraform and Vault, and IBM Bob into the ServiceNow AI Platform, with joint solutions expected in the second half of 2026.
Oracle's stock missed out on the broader software rally, as the company is tied to OpenAI's success through its cloud-infrastructure business.
ServiceNow remains a Strong Buy as AI-driven demand and backlog growth accelerate, with the stock retracing to an attractive entry point. NOW's integration moat is expanding through major partnerships (IBM, Cognizant, HPE), reinforcing its role as the orchestration layer for AI agents. Security and identity acquisitions have tripled NOW's TAM, with the security unit surpassing a $1B run-rate and 100% growth inflection.
ServiceNow (NOW) closed at $93.8 in the latest trading session, marking a -2.23% move from the prior day.