NOW changes
Pick any two versions below to diff them.
- Price
- $142.83 → $135.62(−5.0%)
- Discount category
- Close to intrinsic value → Below intrinsic value
- Thesis
- removed: Many investors worry added: Investors fear that AI agents will replace the removed: human added: paid work seats removed: that ServiceNow's added: ServiceNow prices its software removed: is priced around. removed: This could shrink added: Software stocks broadly fell on this fear in September 2026, not only ServiceNow. The gap can close if ServiceNow keeps growing subscription revenue removed: over time. But added: near its current pace while its AI removed: agents need governance, monitoring, and workflow infrastructure to run safely inside large companies, and ServiceNow sells that infrastructure. added: products add revenue instead of replacing seats. The company's removed: own AI removed: products crossed added: product line already passed one billion dollars in annual contract removed: value in mid-2026, and the added: value. The number of customers running AI agents in production grew nine times removed: over added: in nine months. added: ServiceNow also combined Now Assist, Moveworks, and AI Experience into one AI product. This removed: is evidence that added: lets it sell AI removed: adoption is adding revenue, not replacing it. The stock fell sharply even added: work as added: new revenue rather than compete against its own seat revenue. Two analysts raised their price targets in September 2026 on strong AI demand, a sign some investors already see the seat-replacement fear as overdone. The clearest test comes at Q3 2026 earnings on October 28, 2026. Management will report whether subscription added: growth held near 20% and whether cRPO, current remaining performance obligations, a measure of contracted revenue added: not yet billed, met guidance. If growth removed: stayed above 20%, which suggests added: holds through the removed: market re-rated added: next two to three quarters, the removed: whole enterprise software sector on AI added: seat-replacement fear removed: more than it judged ServiceNow's own results. added: should ease and the gap can close.
- Recent events
- added: Sep 23, 2026: ServiceNow stock fell alongside a broader selloff in AI-linked software stocks in late September 2026, even after two brokers had just raised their price targets. Sep 21, 2026: Cantor Fitzgerald raised its price target on ServiceNow to $174, citing strong demand for AI-related workflow and automation products. Sep 8, 2026: BTIG raised its price target on ServiceNow to $170 from $150. Jul 22, 2026: ServiceNow reported Q2 2026 results. Subscription revenue was $3.877 billion, up 24.5% from last year. The company said its AI products crossed $1 billion in annual contract value during the quarter. Dec 15, 2025: ServiceNow completed its $2.85 billion acquisition of Moveworks, adding AI assistant and enterprise search technology to its AI product line.