ServiceNow (NOW) is rated BUY, driven by robust AI-fueled growth, strong financials, and high customer ROI. NOW's hybrid pricing model offsets potential seat-based revenue pressure, supporting rising ARPU and strong renewal rates. AI adoption is accelerating: Now Assist surpassed $600M ACV, with deals involving 5+ products up 10x YoY.
Zacks.com users have recently been watching ServiceNow (NOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
ServiceNow: Becoming The Go-To Platform For AI
Valuation concerns capped ServiceNow NYSE: NOW price action in 2025, setting up a correction and buying opportunity unfolding in 2026. The Q4 release not only affirmed the company's strengths but also its longer-term outlook and deepening value.
Over almost three months from late October to January, ServiceNow (NOW)'s stock fell 37%, despite modest revenue growth. Concerns regarding AI disruption, a cautious outlook for FY26, and an aggressive acquisition strategy shook investor confidence, overshadowing earnings and share repurchase initiatives.
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ServiceNow (NOW) is downgraded to Hold after a ~35% correction, driven by valuation compression despite resilient fundamentals. Q4 results showed 21% subscription revenue growth and 31% non-GAAP operating margin, with 2026 guidance broadly in line and no material deterioration. Valuation multiples have compressed to ~8.3x EV/forward revenue, near three-year lows, reflecting market skepticism about AI-driven growth acceleration.
ServiceNow's Q4 earnings jump 26% and top estimates, but shares slide despite strong AI traction and a bullish 2026 outlook.
The iShares Expanded Tech-Software Sector ETF is on pace for its biggest one-day decline since April 4 during the tariff-triggered downturn.
ServiceNow, Inc. (NOW) Q4 2025 Earnings Call Transcript
While the top- and bottom-line numbers for ServiceNow (NOW) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
ServiceNow (NOW) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $0.73 per share a year ago.