News about NOW

ServiceNow (NYSE:NOW) closed at $145.36 on October 19 and has returned 45.77% over six months. Its annual revenue runs at $14.73 billion and grew 24.00% last quarter, helped by workflow software spreading from one department to another at low added cost. The article argues growth gets harder at this size, since each year requires selling more, and stock-based pay reached $1.96 billion in the latest year. Debt is 67.54% of equity, so demand rather than funding is the main constraint. At 27.78 times analysts' next-year expectations, the price assumes growth continues, and the article suggests tracking the absolute revenue added each quarter.

ServiceNow trades at $145.33, nearly 20% below a year ago, even though its AI business has passed $1 billion in annual contract value. The average analyst target of $152.23 implies 4.7% upside, while Bernstein's Peter Weed has an Outperform rating and a $248 target, implying 70.6% upside. The stock fell from a 52-week high of $192.97 to a low of $81.24 as fears that AI agents would erode seat-based software hit the group, and second-quarter operating income dropped 54.75% to $162M. In the latest quarter, revenue rose 24.0% to $3.987B and EPS of $0.90 beat the $0.86 consensus. The author leans bullish but considers the consensus target a more realistic 12-month marker than the 70% call.