ServiceNow remains a Strong Buy as its business fundamentals hold strong despite recent valuation increases driven by AI developments. The company launched Flow, a conversational AI-native service desk, aiming to expand into new markets and compete with Salesforce. For Q3, ServiceNow projects 20.5% subscription revenue growth, 19.5% cRPO growth, and a 31% non-GAAP operating margin, though foreign exchange and federal timing remain key variables. While its premium valuation is supported by strong revenue and EBITDA growth, investors should watch for risks from high stock-based compensation and potential AI disruption.
As of Oct 14, 2026 09:01 WIB, ServiceNow (NOW) trades at USD 138.78, down 1.10% on the day, significantly below its 52-week high of USD 189.26 but well above the 52-week low of USD 83.00. Despite the premium valuation noted in the article, Pluang data shows a market cap of $145.07 billion and a typical hold time of 54 days, with a strong sell bias at 81% of order activity. This contrast highlights investor caution even as the company projects robust subscription revenue growth for Q3.
ServiceNow's AI business recently crossed $1 billion in annual contract value, with management aiming for $1.5 billion by the end of 2026. Despite a recent stock selloff, analysts see strong growth potential, driven by 24.5% subscription revenue grow...
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