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- ServiceNow (NOW) Grew Revenue 24% While Earnings Fell 22.60%. Where Did the Profit Go?
ServiceNow grew revenue 24% but earnings fell 22.60%, as the company deliberately spent on sales headcount and engineering payroll to win future customers. The article argues the company did not cut prices to win deals, since gross margin stays at 74.77%, and free cash flow came in at nearly three times reported net income. The stock closed at $140.86 on October 9 and has returned 58.1% over six months, outpacing the Insider Monkey Billionaire Index's 24.3% and the State Street SPDR S&P 500 ETF Trust's 15.1%. According to the piece, the main risk is valuation: the stock trades at 28.14 times forward earnings, well below its trailing multiple, and a current ratio of 0.70 leaves little room for a bad year. The earnings recovery depends on spending stopping and growth holding up.
- ServiceNow launches Control Tower Alliance to help enterprises adopt AI safely at scale
ServiceNow (NYSE: NOW) has launched the Control Tower Alliance, a new ecosystem of AI, cloud infrastructure, security and governance companies working with it to help enterprises adopt AI safely at scale. Founding members include Anthropic, AWS, Cisco, HiddenLayer, Kong, NVIDIA, Okta, OpenAI, Stripe, WitnessAI and Zenity. The alliance offers curated, pretested solutions pre-integrated with the Super Intelligence Control Tower, a centralized platform to discover, secure, govern, observe and measure enterprise AI. Partners can build on the platform, deliver certified pre-integrated solutions, or sell jointly through ServiceNow's global channels. The alliance will coexist with the ServiceNow Store and Workflow Data Network Partner Passport programs.
- ServiceNow delivers industry-first personal enterprise agent and policy enforcement with NVIDIA, extending AI governance across software and silicon
ServiceNow announced general availability of Arc, a personal long-running AI agent built for the enterprise and governed by its Super Intelligence Control Tower, with enforcement provided by NVIDIA OpenShell. ServiceNow's AI Passport, which carries business rules such as risk tolerance and permitted external services, will be read by NVIDIA OpenShell and BlueField DPU enforcement layers to approve or block agent actions. Arc can run inside a secure OpenShell runtime or on an employee's desktop, handles everyday work with local models and turns to frontier models for harder tasks to lower inference costs. Users assign Arc a goal, and it plans, executes across enterprise systems, checks its own work and keeps going until the task is finished.
- ServiceNow Climbs 5% After Denying Decagon Acquisition Interest; Salesforce Rises 4%, Palantir Dips
ServiceNow (NOW) shares rose 5% to $146.93 in midday trading after the company rejected reports that it planned to buy Decagon, a privately held maker of AI customer-service agents. President, Chief Product Officer and COO Amit Zavery said ServiceNow "has no interest or intention of purchasing Decagon," that its acquisition approach is unchanged, and that it prioritizes organic growth and sees no major strategic gaps requiring large deals. Salesforce (CRM) gained 4% to $245.39, while Palantir (PLTR) fell 0.9% to $199.07. The iShares Expanded Tech-Software Sector ETF (IGV) rose 0.9% and the Invesco QQQ Trust (QQQ) fell 0.7%, and the article notes that Salesforce's gain may rest more on sympathy than on company-specific news.
- Netflix and ServiceNow Have Fallen More Than 30% From Their Records. Both Are Stocks to Buy and Hold Through 2030.
The author notes that Netflix and ServiceNow shares have fallen more than 30% from their records while their businesses kept improving, and considers both worth holding through 2030. Netflix trades near $64, about 52% below its June 2025 record of $133.91, yet its operating income over the past four quarters reached about $15.6 billion, roughly 80% above the $8.6 billion of the four quarters through Q2 2024, and management guides to a 2026 operating margin of 31.5%. The main risk for Netflix is viewer engagement, as it cut its 2026 ad revenue forecast to around $2.7 billion from about $3 billion. ServiceNow shares, near $158, have risen about 14% since Oct. 13 ahead of its third-quarter report, with guidance for subscription revenue of $3,975 million to $3,980 million, up 20.5%, and cRPO growth of 19.5%. Reaching its 2030 target of over $30 billion in subscription revenue requires growth of around 17% a year from 2027 through 2030, and the author would watch whether cRPO growth falls far short of that 19.5% guidance.
- ServiceNow vs. Palantir Technologies: Which Technology Stock Is a Better Buy in 2026?
The article compares ServiceNow, which offers an automated workflow platform for roughly 8,700 enterprise customers, with Palantir, which builds data platforms used in government and commercial settings. ServiceNow's FY 2025 revenue reached nearly $13.3 billion, up roughly 20.9%, while Palantir's reached nearly $4.5 billion, up roughly 56.2%, with a net margin of approximately 36.3% versus 13.2% for ServiceNow. The article says both companies carry premium valuations, with Palantir valued significantly higher. It notes Palantir's Q2 2026 U.S. commercial revenue grew nearly 150% year over year and that its full-year guidance was raised substantially. The author favors Palantir, while calling ServiceNow one of the more dependable compounders in enterprise software.
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