ServiceNow, Inc. provides end to-end intelligent workflow automation platform solutions for digital businesses in the North America, Europe, the Middle East and Africa, Asia Pacific, and internationally. The company operates the Now platform for end-to-end digital transformation, artificial intelligence, machine learning, robotic process automation, process mining, performance analytics, and collaboration and development tools. It also provides asset management, cloud observability, integrated risk management; information technology (IT) service management applications; IT service management product suite for enterprise's employees, customers, and partners; strategic portfolio management product suite; IT operations management product that connects a customer's physical and cloud-based IT infrastructure; IT asset management; and security operations that connects with internal and third party. In addition, the company offers integrated risk management product to manage risk and resilience; environmental, social and governance management product; human resources, legal, and workplace service delivery products; customer service management product; and field service management applications. Further, the company provides app engine product; automation engine; platform privacy and security product; and source-to-pay operations. It serves to government, financial services, healthcare, telecommunications, manufacturing, IT services, technology, oil and gas, education, and consumer products through service providers and resale partners. The company was formerly known as Service-now.com and changed its name to ServiceNow, Inc. in May 2012. ServiceNow, Inc. was founded in 2004 and is headquartered in Santa Clara, California.

ServiceNow, Inc.

It has been about a month since the last earnings report for ServiceNow (NOW). Shares have lost about 12% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ServiceNow due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
NOW Q2 Earnings Beat Estimates, Revenues Rise Y/Y
ServiceNow reported second-quarter 2025 adjusted earnings of $4.09 per share, which beat the Zacks Consensus Estimate by 15.54% and increased 30.7% year over year.
Revenues of $3.22 billion beat the consensus mark by 3.02% and increased 22.4% year over year. At constant currency (cc), revenues increased 21.5% year over year to $3.19 billion.
NOW’s Q2 Top-Line Details
Subscription revenues improved 22.5% year over year, on a reported basis, to $3.11 billion. On a cc basis, revenues increased 21.5% to $3.09 billion.
Professional services and other revenues increased 20% year over year on a reported basis to $102 million and 18% on a cc basis to $101 million.
At the end of the second quarter, the current remaining performance obligations (cRPO) were $10.65 billion, up 21.5% year over year on a cc basis. Remaining performance obligations, on a cc basis, rose 25.5% year over year to $23.3 billion.
ServiceNow had 89 transactions over $1 million in net new annual contract value (ACV) in the second quarter. The company expanded its customer relationships, reaching 528 customers with more than $5 million in ACV at the end of the reported quarter, which represents 19.5% year-over-year growth in customers.
NOW’s Operating Details
In the second quarter, non-GAAP gross margin was 81%, down 160 basis points (bps) on a year-over-year basis.
Subscription gross margin was 83.2%, contracted 160 bps year over year. Professional services and other gross margins were 13.7% compared with 16.5% reported in the year-ago quarter.
As a percentage of revenues, operating expenses decreased 350 bps on a year-over-year basis to 66.3%.
ServiceNow’s non-GAAP operating margin expanded 230 bps on a year-over-year basis to 29.7%.
AI Innovation Powers Q2 Results
ServiceNow continues to scale its AI-led enterprise transformation with major product launches, strategic partnerships, and targeted acquisitions. NOW launched AI Control Tower and AI Agent Fabric during the second quarter, providing organizations with centralized systems to govern and orchestrate AI agents across functions.
ServiceNow introduced Core Business Suite, integrating HR, procurement, finance, and legal operations into one AI-powered platform. The Workflow Data Network expanded data capabilities through partner ecosystems for real-time intelligence.
Strategic partnerships strengthened NOW's AI capabilities across multiple sectors. The AWS collaboration launched bi-directional data integration solutions to eliminate enterprise silos. NVIDIA partnership introduced the Apriel Nemotron 15B reasoning model for enhanced AI agent performance. Additional alliances with UKG modernized workforce management, while Cisco integration deepened AI Defense capabilities within AI Control Tower.
ServiceNow's Knowledge event doubled attendance year over year, showcasing major innovations. The data.world acquisition closed during the quarter, enhancing AI agent understanding and enterprise data governance. Notable partnerships included Ferrari for race operations and CapZone Impact Investments for manufacturing modernization, expanding NOW's industry reach.
NOW’s Balance Sheet & Cash Flow
As of June 30, 2025, NOW had cash and cash equivalents and short-term investments of $6.13 billion compared with $6.6 billion as of March 31, 2025. Long-term investments were $4.66 billion.
During the reported quarter, cash from operations was $716 million compared with $1.68 billion in the previous quarter.
ServiceNow generated a free cash flow of $535 million in the reported quarter, down from $1.48 billion reported in the prior quarter.
NOW repurchased roughly 381,000 shares for $361 million. The company has approximately $2.6 billion available for future share repurchases.
NOW’s Provides Q3 & FY25 Guidance
For 2025, NOW expects subscription revenues to be $12.775-$12.795 billion, which suggests a rise of 20% from 2024 on a GAAP basis and 19.5%-20% on a non-GAAP constant currency basis.
ServiceNow expects the non-GAAP subscription gross margin to be 83.5% and the non-GAAP operating margin to be 30.5%. Moreover, the free cash flow margin is expected to be 32%.
For the third quarter of 2025, subscription revenues are projected between $3.26 billion and $3.265 billion, suggesting year-over-year growth in the range of 20%-20.5% on a GAAP basis. At cc, subscription revenues remain flat at 19.5%.
ServiceNow expects the non-GAAP operating margin to be 30.5% in the current quarter, with cRPO growth projected at 18.5% on a GAAP basis and 18% on a non-GAAP basis.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in fresh estimates.
VGM Scores
Currently, ServiceNow has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ServiceNow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ServiceNow, Inc. (NOW) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Is ServiceNow (NOW) Down 12% Since Last Earnings Report?

Key Points
Infrastructure software has benefited more from AI investor excitement than application software.
Salesforce and Adobe are struggling to capitalize on AI.
Both companies are still growing and have bargain-bin valuations.
As (by far) the largest sector in the Nasdaq Composite (NASDAQINDEX: ^IXIC), technology has been instrumental in driving the index to new heights. Megacap "Ten Titans" stocks like Nvidia and Microsoft make up a massive share of the tech sector and have continued seeing outsize year-to-date gains.
Dig deeper, and you'll find that many large software companies have undergone sizable sell-offs.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Salesforce (NYSE: CRM) and Adobe (NASDAQ: ADBE) are down more than 20% year to date despite a 12% gain in the Nasdaq. Here's what's driving the sell-off in these artificial intelligence (AI) growth stocks, and if they could be worth buying now.
AI is challenging the SaaS business model
At its core, what makes AI so exciting is its ability to improve efficiency by allowing companies and individuals to do more with fewer resources. AI can expedite research, provide helpful tips for coding, and accelerate task completion across industries. Large language models (LLMs) created by companies like OpenAI, Microsoft, Alphabet, and Meta Platforms provide a new technological foundation for enterprise software companies.
Salesforce and Adobe became tech giants by carving out a niche in enterprise workflows and selling software as a service (SaaS) -- a model that depends on a growing number of users. Salesforce did it with customer relationship management (CRM) software for sales, services, marketing, analytics, and more. Adobe built its SaaS empire around Creative Cloud -- a portfolio of apps for videos, photos, graphic design, audio, and publishing.
Users doing more with less means enterprises may be able to reduce the number of software subscriptions -- posing a challenge to the SaaS model. And worse yet, if rival companies can replicate some of the tools that Salesforce and Adobe provided, then it could lead some clients to go with a competitor or cancel their subscriptions.
AI is an opportunity for SaaS companies, but it also levels the playing field and erodes the moats of established players. A legacy software giant like Adobe is now more vulnerable than ever to disruption by newer, smaller companies like Canva and Figma, which have their own growing list of AI offerings.
Salesforce could lose market share to Microsoft Dynamics 365, which integrates with the Office 365 software suite and provides CRM and enterprise resource planning services.
Similarly, Oracle's Cloud CX platform competes with Salesforce clouds. Oracle's combination of cloud and database software, along with its CX Platform, gives it a more complete offering than Salesforce.
The market isn't rewarding Salesforce and Adobe for their AI upgrades
So far, many of the beneficiaries of AI investor excitement have been the companies providing the hardware and equipment -- like Nvidia and Broadcom -- and the infrastructure companies that are building software, frameworks, databases, storage, networking, etc. In a figurative sense, these companies are constructing a nationwide highway network to cut commute times and boost commerce.
But you still need cars to drive on the highway, or else it is rendered useless. The advantage of companies like Microsoft and Oracle is that they are building the highway and selling cars. SaaS companies, by contrast, are like automakers going toe to toe in the highly competitive passenger vehicle market.
Still, the application software companies have an incredible opportunity to leverage AI into their existing solutions -- especially through agentic AI, where AI agents help accomplish tasks for the user. These agents act as sophisticated assistants that can speed up workflows.
Despite what their falling stock prices may suggest, Salesforce and Adobe aren't asleep at the wheel when it comes to AI.
Salesforce has a predictive, generative, and agentic AI tools under its Agentforce lineup. Einstein offers a complete suite of AI tools, with a version starting at $25 per month per user and going up to $500 per user per month, not including add-ons.
Adobe has a number of AI assistants, generative AI tools, and agentic AI that help users build, edit, and interact with media. For example, Adobe's AI assistants for Acrobat allow users to interact with documents to generate summaries, reports, emails, texts, and social posts. Adobe Firefly is a text-to-image generator. And Sensei can perform tasks like reframing video footage, filling images for consistency, and predicting trends for marketing content.
Salesforce and Adobe are innovating at an incredible pace -- it's just that their competitors are, too. As a result, Salesforce and Adobe have delivered lackluster growth, showcasing how AI developments haven't directly translated to their earnings.
In its latest quarter -- the first quarter of fiscal 2026 ended April 30 -- Salesforce issued full-year fiscal 2026 revenue guidance of just 8% to 9%, operating cash-flow growth of 10% to 11%, and an operating margin of 34%.
The midpoint of Adobe's updated full-year fiscal 2025 guidance (period ending Nov. 28) calls for just 9.5% year-over-year revenue growth and 11.8% non-GAAP (adjusted) earnings-per-share (EPS) growth.
Overall, their results aren't terrible -- but they are fairly unimpressive compared to the breakneck growth rates of companies that have done a better job converting AI spending into bottom-line results.
Salesforce and Adobe have fallen far enough
Salesforce and Adobe aren't the only application software stocks that are beaten down. Monday.com fell nearly 30% last week. Palo Alto Networks, Autodesk, Datadog, Workday, ServiceNow, and Atlassian are just some of the many application software companies that are down year to date.
When earnings are going up and a stock's price is going down, the valuation becomes more enticing. Sure enough, Salesforce sports a forward price-to-earnings (P/E) ratio of just 21.5, and Adobe has a 17.3 forward P/E. Those are both lower than the S&P 500 (SNPINDEX: ^GSPC) forward P/E of 23.3.
Salesforce and Adobe have their challenges, but these are still great companies. So the fact that they are cheaper than the S&P 500 on a forward earnings basis is a good indicator that the sell-off has gone too far.
Still, buying either stock requires the conviction that the company can continue innovating and succeeding despite the onslaught of new competition. Investors approaching the application software industry should understand that valuations are low for good reasons.
Should you invest $1,000 in Salesforce right now?
Before you buy stock in Salesforce, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $671,466!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,115,633!*
Now, it’s worth noting Stock Advisor’s total average return is 1,077% — a market-crushing outperformance compared to 185% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of August 18, 2025
Annie Dean, a Vice President at Atlassian, is a member of The Motley Fool's board of directors. Daniel Foelber has positions in Adobe and Nvidia. The Motley Fool has positions in and recommends Adobe, Alphabet, Atlassian, Autodesk, Datadog, Microsoft, Monday.com, Nvidia, Oracle, Salesforce, ServiceNow, and Workday. The Motley Fool recommends Palo Alto Networks and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Artificial Intelligence (AI) Growth Stocks Hovering Around 52-Week Lows Even as the Nasdaq Hits New Highs

ServiceNow's NOW AI Control Tower is poised to capitalize on accelerating enterprise adoption as organizations seek unified AI governance. Positioned as a centralized orchestration platform, it manages AI agents across enterprise environments, addressing complexity from deploying multiple AI solutions. The platform unifies third-party AI applications and NOW's native solutions under a single management framework, establishing it as a vendor-agnostic foundation for AI transformation.
AI Control Tower emerged as a pivotal growth catalyst in ServiceNow's second-quarter performance. Subscription revenues climbed 21.5% year over year to $3.11 billion, while current Remaining Performance Obligations(cRPO) advanced 21.5% to $10.92 billion. The platform exceeded its full-year net new ACV target within just seven months of launch, highlighting robust enterprise appetite. The Zacks Consensus Estimate for third-quarter subscription revenues is pegged at $3.26 billion and the consensus mark for cRPO is pegged at $11.09 billion, implying sustained momentum.
Adoption is broadening across sectors. Standard Chartered will use AI Control Tower to govern agentic AI initiatives, while the North Carolina Department of Transportation is deploying it to ensure compliance as it scales modernization efforts. Cisco and UKG have also adopted the platform, underscoring versatility across industries.
The AI governance market is projected to expand from $227 million in 2024 to $4.8 billion by 2034, according to Grand View Research, while more than 73% of organizations worldwide are either using or piloting AI in core functions as of 2025, per Founders Forum Group. AI Control Tower's early market penetration positions ServiceNow to capture enhanced value from this trend, potentially sustaining RPO growth momentum while expanding addressable market opportunities.
NOW Faces Stiff Competition
ServiceNow’s AI governance position faces growing competition from Salesforce CRM, which is pushing Agentforce and Service Cloud as integrated CRM-to-AI platforms. Salesforce emphasizes embedding AI governance within customer workflows, directly overlapping with ServiceNow’s customer service offerings. However, Salesforce lacks the vendor-agnostic orchestration capabilities that ServiceNow’s AI Control Tower provides.
Microsoft MSFT is another strong competitor, expanding Copilot AI agents and Azure AI governance tools across enterprise environments. Microsoft’s integration with its productivity suite offers scale advantages, but unlike ServiceNow’s natively built orchestration model, MSFT must retrofit governance into its existing systems.
NOW’s Share Price Performance, Valuation and Estimates
ServiceNow shares have declined 15.9% year to date against the broader Zacks Computer & Technology sector’s appreciation of 13.8%.
NOW Stock Performance
Image Source: Zacks Investment Research
NOW stock is trading at a premium, with a forward 12-month Price/Sales of 12.66X compared with the Computer & Technology 6.77X. NOW has a Value Score of F.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is currently pegged at $4.22 per share, unchanged over the past 30 days. This indicates a 13.44% increase year over year.
ServiceNow, Inc. Price and Consensus
The consensus mark for 2025 earnings is pegged at $16.79 per share, which has increased a quarter over the past 30 days, suggesting 20.62% year-over-year growth.
NOW currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Now's AI Control Tower Adoption Rises: Can It Boost RPO Growth?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in ServiceNow Inc (Symbol: NOW), where a total of 7,823 contracts have traded so far, representing approximately 782,300 underlying shares. That amounts to about 41.4% of NOW's average daily trading volume over the past month of 1.9 million shares. Especially high volume was seen for the $910 strike call option expiring August 22, 2025, with 277 contracts trading so far today, representing approximately 27,700 underlying shares of NOW. Below is a chart showing NOW's trailing twelve month trading history, with the $910 strike highlighted in orange:
Cipher Mining Inc (Symbol: CIFR) options are showing a volume of 102,156 contracts thus far today. That number of contracts represents approximately 10.2 million underlying shares, working out to a sizeable 41.4% of CIFR's average daily trading volume over the past month, of 24.7 million shares. Especially high volume was seen for the $10 strike call option expiring January 15, 2027, with 8,383 contracts trading so far today, representing approximately 838,300 underlying shares of CIFR. Below is a chart showing CIFR's trailing twelve month trading history, with the $10 strike highlighted in orange:
And Biogen Inc (Symbol: BIIB) saw options trading volume of 6,324 contracts, representing approximately 632,400 underlying shares or approximately 41.3% of BIIB's average daily trading volume over the past month, of 1.5 million shares. Especially high volume was seen for the $141 strike call option expiring August 22, 2025, with 2,140 contracts trading so far today, representing approximately 214,000 underlying shares of BIIB. Below is a chart showing BIIB's trailing twelve month trading history, with the $141 strike highlighted in orange:
For the various different available expirations for NOW options, CIFR options, or BIIB options, visit StockOptionsChannel.com.
Top Stocks Held By Leon Cooperman
Top Ten Hedge Funds Holding MSFU
MTSC Historical Stock Prices
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Monday Option Activity: NOW, CIFR, BIIB

ServiceNow NOW shares have declined 18.2% year to date, while the Zacks Computers – IT Services industry has plunged 16.8%. However, the Zacks Computer & Technology sector has appreciated 13.8% during the same period. The decline in ServiceNow’s shares can be attributed to macroeconomic pressures and tightening budgets across certain enterprise and federal segments.
Despite these near-term headwinds, ServiceNow's transformation into an AI-powered enterprise platform continues to gain momentum, raising questions about whether the stock’s recent weakness creates an attractive entry point or signals deeper concerns about growth sustainability.
NOW Stock’s YTD Performance
Image Source: Zacks Investment Research
AI Strategy Strengthens NOW’s Position
ServiceNow has built a broad AI ecosystem anchored by its AI Control Tower, a centralized system for governing enterprise AI agents. This framework is already showing financial traction, with subscription revenue rising 22.5% year over year to $3.11 billion in the second quarter of 2025.
The partnership with NVIDIA NVDA on the Nemotron large language model expands reasoning capabilities while allowing flexibility across multiple AI providers, including Microsoft’s MSFT OpenAI, Google’s Gemini and Anthropic’s Claude. This breadth of support has translated into tangible wins, highlighted by a $20 million Now Assist deal and 21 agreements involving five or more Now Assist products.
The acquisition of data.world strengthens ServiceNow’s data governance capabilities by adding knowledge graph technology critical for AI deployments. Workflow Data Fabric, which featured in 17 of the top 20 largest deals during the recently reported quarter, implies strong demand for integrated solutions. Together, these investments and NVIDIA’s AI infrastructure expertise position ServiceNow to become a central platform for enterprise AI operations.
NOW’s Platform Expansion Gains Traction
ServiceNow is extending its reach beyond core IT service management into front-office workflows, underscoring its evolution into a full-scale business transformation platform. The Logik.ai acquisition strengthened configure-price-quote capabilities, leading to nine CPQ deals in June as the company builds presence in markets long dominated by Salesforce CRM.
NOW's emphasis on agentic AI provides differentiation from Microsoft’s suite, even as both players accelerate AI investments. This strategy is resonating with customers, as Pro Plus deal counts rose more than 50% sequentially and ITSM Plus deal values quadrupled year over year, reflecting growing demand for enhanced AI functionality.
Customer metrics reflect steady adoption trends, with ServiceNow ending the second quarter with 528 customers generating over $5 million in annual contract value. Customers contributing $20 million or more increased by over 30% year-over-year. A 98% renewal rate highlights strong customer satisfaction, supporting sustained growth in large accounts.
NOW’s Earnings Estimate Revision Steady
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.22 per share, unchanged over the past 30 days, indicating a 13.44% increase over 2024’s reported figure.
The consensus mark for third-quarter 2025 revenues is pegged at $3.35 billion, suggesting growth of 19.88% over 2024’s reported figure.
ServiceNow, Inc. Price and Consensus
Mixed Market Dynamics Create Uncertainty
ServiceNow is navigating an environment where AI adoption is accelerating, but budget scrutiny is tightening. Lengthier procurement cycles and more rigorous approval processes are slowing deal closures, creating execution risks for large-scale platforms.
The federal segment remains a pressure point, with budget constraints limiting near-term upside despite the addition of six new logos in the second quarter. Current RPO growth expectations of 18.5% for the third quarter already reflect a 200-basis point headwind from large customer renewals, with the Zacks Consensus estimate for the same being pegged at $11.09 billion. These signals highlight how spending caution could weigh on near-term growth visibility.
Competition is intensifying. Salesforce is pushing deeper into enterprise workflows with its Einstein AI suite, while Microsoft is expanding Copilot across Azure, forcing ServiceNow to prove its differentiation in agentic AI and workflow integration. Strategic partnerships such as NVIDIA provide a lever, but the ability to convert innovation into measurable outcomes remains critical under tighter spending conditions.
How Should You Approach ServiceNow Stock?
ServiceNow stock is overvalued, as suggested by the Value Score of F.
In terms of the forward 12-month Price/Sales, NOW is trading at 12.32X, higher than the Computer & Technology sector’s 6.78X.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Despite strong operational execution and promising AI momentum, ServiceNow's premium valuation creates limited margin for error. The company's strategic positioning in enterprise AI automation remains compelling, with differentiated offerings that address real customer pain points. However, federal sector headwinds and heightened competitive pressure from Salesforce's AI investments and Microsoft's enterprise AI integration suggest a cautious approach is warranted.
ServiceNow currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can ServiceNow's Expanding AI-Powered Platform Drive the Stock Higher?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Expanded Tech-Software Sector ETF (Symbol: IGV) where we have detected an approximate $474.6 million dollar outflow -- that's a 4.2% decrease week over week (from 102,750,000 to 98,400,000). Among the largest underlying components of IGV, in trading today ServiceNow Inc (Symbol: NOW) is up about 1.1%, Applovin Corp (Symbol: APP) is down about 0.1%, and Strategy Inc (Symbol: MSTR) is lower by about 0.9%. For a complete list of holdings, visit the IGV Holdings page » The chart below shows the one year price performance of IGV, versus its 200 day moving average:
Looking at the chart above, IGV's low point in its 52 week range is $76.68 per share, with $114.83 as the 52 week high point — that compares with a last trade of $108.99. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Selling Puts For Income
PUYI market cap history
RQI Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

IGV, NOW, APP, MSTR: ETF Outflow Alert

Investors interested in stocks from the Computers - IT Services sector have probably already heard of Leidos (LDOS) and ServiceNow (NOW). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Leidos has a Zacks Rank of #2 (Buy), while ServiceNow has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LDOS has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LDOS currently has a forward P/E ratio of 16.12, while NOW has a forward P/E of 50.67. We also note that LDOS has a PEG ratio of 2.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NOW currently has a PEG ratio of 2.13.
Another notable valuation metric for LDOS is its P/B ratio of 4.86. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NOW has a P/B of 16.19.
Based on these metrics and many more, LDOS holds a Value grade of B, while NOW has a Value grade of F.
LDOS has seen stronger estimate revision activity and sports more attractive valuation metrics than NOW, so it seems like value investors will conclude that LDOS is the superior option right now.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

LDOS or NOW: Which Is the Better Value Stock Right Now?

Key Points
ASML has a technological monopoly on a crucial type of chipmaking equipment.
CrowdStrike’s cloud-native cybersecurity platform is still expanding.
ServiceNow will profit from the growth of the cloud and AI markets.
August generally isn't considered the best time to buy stocks. It lands between May, when many investors "sell in May and go away," and September, which has historically had a pattern of being the worst month of the year for stocks. But the market's common summer swoons -- which can largely be attributed to the behavioral biases of investors -- shouldn't matter to long-term investors.
After all, the S&P 500 has still delivered an average annualized return of about 10% since its inception in 1957. So if you don't mind a little near-term volatility, August can still be a great time to add to your portfolio, and ASML (NASDAQ: ASML), CrowdStrike (NASDAQ: CRWD), and ServiceNow (NYSE: NOW) are three great tech stocks worth buying today.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
ASML is the world's top supplier of photolithography systems, which are used to optically etch circuit patterns onto silicon wafers. It's also the only producer of extreme ultraviolet (EUV) lithography machines -- the only ones capable of operating at a fine enough level of detail to make today's most advanced, densest, and most power-efficient chips.
ASML's monopoly in that crucial technology makes it a linchpin of the semiconductor sector. All of the world's top foundries -- including TSMC, Samsung, and Intel -- use its EUV systems to manufacture cutting-edge chips.
In 2024, ASML suffered a slowdown as it lapped the AI market's initial growth spurt, its non-AI markets grew at a slower rate, and it was barred from selling even its older lithography systems to customers in China. But from 2024 to 2027, analysts expect its revenue and EPS to grow at compound annual rates of 10% and 17%, respectively.
That growth should be driven by the memory chip market's cyclical recovery, the AI market's expansion, and the rollout of its latest high-NA EUV lithography systems for manufacturing even smaller and more sophisticated chips. That's an impressive projected growth trajectory for a stock that trades at just 25 times next year's expected earnings.
CrowdStrike
Cybersecurity company CrowdStrike only provides subscription-based services via the cloud. That approach, which is stickier and easier for customers to scale as they expand, sets it apart from older cybersecurity companies, which often install on-site appliances at their clients' locations that consume more power, take up space, and require regular maintenance.
CrowdStrike's first-mover advantage in the cloud-native cybersecurity space gives it an edge over its peers. In its latest reported quarter, 48% of its customers were using at least six of its Falcon platform's cloud-based modules. That was up from 44% a year earlier. As a cybersecurity leader, its business is also resistant to economic downturns because even when belt-tightening is necessary, most companies won't shut off their digital defenses just to save a few dollars.
From its fiscal 2025 (which ended this January) to its fiscal 2028, analysts expect CrowdStrike's revenue to grow at a compound annual rate of 22%. They also expect it to turn profitable again on a generally accepted accounting principles (GAAP) basis in its fiscal 2027 and more than triple its net income in fiscal 2028. Its stock might seem a bit pricey at 18 times next year's expected sales, but its robust growth rates and cloud-based advantages justify that higher valuation.
ServiceNow
ServiceNow is a cloud-based company that helps large companies organize their unstructured work patterns into automated digital workflows. Its Now Assist AI platform further accelerates that process with generative AI chatbots and automation tools.
ServiceNow's business is naturally insulated from macroeconomic headwinds. As the economy expands, more companies will use its services to optimize their expansion efforts. But if the economy contracts, they'll use its platform to cut costs and automate more jobs with AI. During its latest conference call, CEO Bill McDermott proclaimed that "AI is the new UI," and said that ServiceNow's platform was becoming the "extensible AI operating system" for agentic AI applications.
From 2024 to 2027, analysts expect ServiceNow's revenue and GAAP EPS to grow at compound annual rates of 19% and 28%, respectively. Its stock might also seem a bit pricey at 77 times next year's expected earnings, but it remains a great play on the secular growth of the cloud and AI markets.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $470,942!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,346!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $649,544!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of August 13, 2025
Leo Sun has positions in ASML. The Motley Fool has positions in and recommends ASML, CrowdStrike, Intel, ServiceNow, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Top Tech Stocks to Buy in August

Salesforce, Inc. (CRM) is using its ADAM framework, which includes Agents, Data, Apps and Metadata, as the base for its AI strategy. In the last earnings call for the first quarter of fiscal 2026, management emphasised that all four parts are needed for enterprises to deliver AI agents, or digital labor, effectively.
Salesforce delivers AI Agents through its Agentforce platform, while data is unified in the Data Cloud platform. The company’s integration platform, MuleSoft, connects all the systems. Apps include Salesforce products like Sales Cloud, Service Cloud, Tableau, and Slack and Metadata acts as the shared platform that links all these components. Moreover, Salesforce’s pending $8 billion acquisition of Informatica will enable it to expand into Informatica’s master data management and ETL capabilities and create a unified architecture for agentic AI. The integration will help Salesforce create an environment where AI agents can operate safely and responsibly.
During the first quarter of fiscal 2026, management highlighted product examples built on the ADAM framework. Tableau Next is connected to Data Cloud and uses the Metadata platform to run its operations, while Slack acts as a conversational interface where users can access Salesforce apps and agents. MuleSoft connects the underlying systems, and Informatica is expected to strengthen data quality and readiness.
Moreover, the ADAM approach is also being used in customer projects, demonstrating its effectiveness. Finnair is deploying agents for customer service automation, while PepsiCo is combining multiple Salesforce clouds with an agent layer, and Falabella scaled a WhatsApp-based agent pilot into a larger regional rollout.
Management believes that without all four elements of the ADAM framework, enterprises cannot deliver the complete AI experience. While the company is betting on ADAM to help it stand out as businesses adopt agent-based automation, its ability to keep that lead will depend on how quickly customers adopt the framework. If execution goes well, the ADAM framework could become the next chapter in Salesforce’s growth story. The Zacks Consensus Estimate for fiscal 2026 and 2027 revenues indicates year-over-year growth of 8.6% and 9.2%, respectively.
How Competitors Fare Against Salesforce
Microsoft Corporation (MSFT) and ServiceNow, Inc. (NOW) are also pushing AI automation in the enterprise market.
Microsoft has integrated strong AI features into its Dynamics 365 platform through its Copilot tools, simplifying tasks such as writing emails, creating reports and summarizing meetings for users. Since many companies already use Microsoft products, integrating Copilot into their existing workflows is simple and cost-effective.
ServiceNow’s Now Assist platform uses AI to automate IT service management, customer support and human resource management tasks. ServiceNow has been rolling out industry-specific AI tools, similar to what Salesforce is doing with its ADAM framework.
Shares of Salesforce have plunged 30.7% year to date against the Zacks Computer – Software industry’s growth of 19.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 19.33, significantly below the industry’s average of 35.32.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Salesforce’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 10.8% and 11.5%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
See our %%CTA_TEXT%% report – free today!
7 Best Stocks for the Next 30 Days
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CRM Bets on ADAM Framework: Will it Fortify Leadership in Agentic AI?

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
In trading on Monday, shares of ServiceNow Inc (Symbol: NOW) entered into oversold territory, hitting an RSI reading of 28.4, after changing hands as low as $852.32 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 62.5. A bullish investor could look at NOW's 28.4 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of NOW shares:
Looking at the chart above, NOW's low point in its 52 week range is $678.659 per share, with $1198.09 as the 52 week high point — that compares with a last trade of $856.17.
Historical PE Ratio
IMTM Options Chain
XHLF Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Periodand min./max. price, $	Price change, %		Volatility, %		Volume, $
Periodand min./max. price, $	NOW	Industry	NOW	Industry	Volume, $
Yesterday 873.0 - 896.4	-2.36	19.26	2.36	1.59	452.32M
Week 848.6 - 900.9	0.69	24.90	3.11	3.71	4.80B
Month 840.0 - 1,051.0	-9.52	36.02	7.87	11.69	19.16B
3 Months 840.0 - 1,057.4	-14.24	12.39	13.66	16.01	40.85B
6 Months 678.7 - 1,057.4	-11.10	46.39	22.63	25.54	89.08B
Year 678.7 - 1,198.1	3.33	60.94	39.13	31.01	150.40B
3 years 337.0 - 1,198.1	86.44	44.07	65.92	59.17	335.53B
5 years 337.0 - 1,198.1	89.41	52.89	90.89	91.20	537.90B
All time 22.6 - 979.8	3,693.48	180.34	—	—	476.47B

ServiceNow, Inc.

Price and volatility history

Risk ratios