NOW

NOW is seeing accelerating Agentic AI adoption as rising customer demand and expanding AI products support long-term revenue growth.

ServiceNow is upgraded to Buy in a pair trade against Salesforce, leveraging NOW's superior organic growth while hedging AI disruption risks. Q2 2026 showed NOW's revenue and subscription growth (~24%) outperforming guidance, with AI-related bookings up 40% sequentially and agentic deployments up 9x in nine months. Valuation multiples for NOW have compressed to ~6.5x EV/forward revenue, closing the gap with CRM and supporting the relative trade based on organic growth differentials.

Investors with an interest in Computers - IT Services stocks have likely encountered both Fujitsu Ltd. (FJTSY) and ServiceNow (NOW).

There are few better examples of a gap between a company's performance and its share price right now than ServiceNow Inc. NYSE: NOW. The enterprise software giant has spent a year selling off on fears that artificial intelligence will eventually make its business obsolete, and yet the numbers it just delivered tell a completely different story.

ServiceNow (NOW) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Enterprise software stocks are staging a coordinated rebound in Monday midday trading, with Salesforce (NYSE:CRM | CRM Price Prediction) shares up 7% to $176, ServiceNow (NYSE:NOW) shares up 8% to $107, and Workday (NASDAQ:WDAY) shares up 10% to $49.

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.

ServiceNow delivered double-digit revenue and RPO growth in Q2, driven by accelerating adoption of its generative AI services, notably Now Assist. NOW exceeded Q2 consensus with $3.99B revenue and $0.90 non-GAAP EPS, and raised its subscription revenue outlook on robust enterprise AI momentum. Free cash flow reached $634M, up 19% year-over-year, as AI-driven subscription revenue growth continues.

ServiceNow turned in another strong quarter, but its stock is still struggling thanks to AI disruption concerns. Given its valuation, growth, and position in the industry, the stock looks like a long-term buy for patient investors.

Shares of ServiceNow (NYSE:NOW | NOW Price Prediction) are up 6% in Friday midday trading, changing hands at $97.36.