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ServiceNow's shift to non-seat pricing boosts growth despite market fears over AI impact.

Analyst Insights
19 Jun 2026
Seeking Alpha
View Source
Bullish
pluang ai news

ServiceNow's stock has been pressured due to concerns that agentic AI will undermine its traditional seat-based licensing revenue. However, more than half of its new annual contract value now comes from non-seat consumption pricing, indicating a successful structural shift. This pivot is driving accelerated growth, making ServiceNow a highly efficient compounder trading at its lowest valuation in history, around 21 times adjusted earnings per share for fiscal 2026. This presents a potentially attractive long-term investment opportunity.

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