Cloud technology giant ServiceNow appears to have notified some of its enterprise customers that a software bug on its platform was allowing anyone on the internet to access their data.
Recently, Zacks.com users have been paying close attention to ServiceNow (NOW). This makes it worthwhile to examine what the stock has in store.
The latest trading day saw ServiceNow (NOW) settling at $114.19, representing a +1.55% change from its previous close.
ServiceNow is rated a strong buy, with shares still 50% below all-time highs despite recent momentum and resilient earnings estimates. NOW's deep enterprise integration and trusted workflow position it as a critical control tower in an AI-augmented future, countering simplistic disruption fears. Valuation remains compelling; even with conservative 15% EPS growth and 25x P/E, projected annual returns exceed 11% over the next decade.
The purple pill: AI is neither utopia nor collapse; compute builds the AI economy, but governed software runs it. ServiceNow owns that workflow-control layer. NOW is not weak seat-based software; it is enterprise infrastructure with 8,700 customers, 98% renewal rates, $4.636B of 2025 FCF, and real AI monetization. Semis are priced for perfection, software is under-loved, and NOW offers the cleaner inversion: AI Control Tower, enterprise execution, durable margins, and potentially 90% upside.
NOW falls nearly 30% in six months as acquisition integration costs, deal delays and competition pressure its near-term outlook.
NOW's EmployeeWorks is gaining traction fast, with rapid growth, million-dollar deals and expanding AI adoption across enterprises.
ServiceNow, Inc. (NOW) Presents at 2026 Evercore Global TMT Conference Transcript
ServiceNow (NYSE: NOW | NOW Price Prediction) and Palantir Technologies (NASDAQ: PLTR) sit on opposite ends of the enterprise artificial intelligence (AI) spectrum, so the question is simple: which one belongs in a retirement portfolio that prioritizes capital preservation and long-term compounding?
ServiceNow (NOW) remains a BUY as AI adoption accelerates, driving both revenue growth and profitability beyond seat-based models. NOW's hybrid pricing—combining seat- and usage-based models—enables upselling and breaks the traditional revenue floor, with 50% of new deals now non-seat-based. AI business momentum is strong: Now Assist spending over $1M grew 130% YoY, and full-year 2026 revenue guidance was raised to $15.7B (+21% YoY).
ServiceNow (NOW) concluded the recent trading session at $127.65, signifying a -6.04% move from its prior day's close.
Shares of major software companies — such as ServiceNow, Asana and Adobe — continued their upward momentum Monday morning as new hardware developments from Nvidia encouraged further rotation into the sector.