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.

ServiceNow NOW has been expanding its portfolio thanks to frequent acquisitions that included the likes of Logik.io, data. world, Moveworks and others in 2025. While Logik.io provided an AI-powered, composable Configure, Price, Quote solution, data.world is a well-known name in enterprise data cataloging and governance. The Moveworks’ acquisition combined ServiceNow’s agentic AI and intelligent workflows with the former’s intuitive front-end AI assistant, enterprise search and agentic Reasoning Engine.
The company is now expanding its footprint in the security domain through acquisitions. In the third quarter of 2025, ServiceNow’s Security and Risk business became its fifth business to cross the $1 billion annual contract value milestone.
NOW’s Veza acquisition strengthens security and risk portfolios. Veza offers next-generation identity governance capabilities, including access reviews, access requests, centralized access hubs and real-time visibility that legacy tools struggle to deliver. Integrated with ServiceNow’s workflows, knowledge graphs and AI, Veza will enhance the AI Control Tower by governing what AI agents can access and perform. In addition, it will add critical identity context to ServiceNow’s existing security and risk offerings, such as vulnerability response, incident response and integrated risk management.
ServiceNow is also expanding its security portfolio with the Armis acquisition. The company will pay a whopping $7.75 billion in cash for Armis, which is a dominant name in cyber exposure management and cyber-physical security across IT, Operational Technology (OT), medical devices and other fields for companies, governments and critical infrastructure (OT, IoT, Cloud, and IoMT) worldwide. Armis acquisition expands NOW’s security workflow offerings and will drive greater AI adoption by strengthening trust across a rapidly expanding threat surface. Armis currently generates more than $340 million in annual recurring revenues, with more than 50% year-over-year growth.
Acquisitions, Partner Base to Drive NOW’s Top-Line Growth
Apart from acquisitions, ServiceNow benefits from a rich partner base. It raised the subscription revenue guidance for 2025 to $12.835-$12.845 billion, suggesting 20% growth on a non-GAAP constant currency (cc) basis and 20.5% on a reported basis from the 2024 reported figure.
However, this is slower than NOW’s subscription revenue growth rate of 23% in 2024. The company’s fourth-quarter 2025 guidance reflects tightening budgets of the U.S. federal agencies, which are expected to hurt subscription revenues.
Tough Competition Hurts NOW’s Prospects
NOW faces stiff competition from the likes of Atlassian TEAM and Salesforce CRM.
Atlassian is a global leader and innovator in the enterprise collaboration and workflow software space. TEAM is poised to grow, given the rising demand for automated and improved communication systems within organizations. Atlassian is currently focused on selling more subscription-based solutions. The company is making significant strides in the enterprise segment by signing more $1 million-plus deals. At the end of the first quarter of fiscal 2026, the company had more than 500 customers spending more than $1 million annually, indicating strong enterprise penetration.
Salesforce is focusing on enhancing its AI capabilities and data cloud business. Subscription and support revenues increased 10% year over year to $9.7 billion in the third quarter of fiscal 2026. Agentforce and Data 360 products drove annual recurring revenues up 114% year over year to $1.4 billion. Salesforce now has more than 9,500 paid Agentforce deals and has processed 3.2 trillion tokens. Data 360 ingested 32 trillion records, up 119% year over year, including 15 trillion via Zero Copy, up 341%, and 390% growth in unstructured data processed. CRM now expects fiscal 2026 revenues between $41.45 billion and $41.55 billion, suggesting 9-10% year-over-year growth.
NOW’s Share Price Performance, Valuation & Estimates
ServiceNow shares have dropped 27.4% in a year, underperforming the broader Zacks Computer and Technology sector’s return of 26.2%.
NOW Stock’s Performance
Image Source: Zacks Investment Research
ServiceNow stock is overvalued, with a forward 12-month price/sales of 12.01X compared with the broader sector’s 7.31X. NOW has a Value Score of F.
NOW’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at 87 cents per share, unchanged over the past 30 days, suggesting 19.2% year-over-year growth.
ServiceNow, Inc. Price and Consensus
ServiceNow currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

NOW Expands Portfolio on Acquisitions: What's Ahead for the Stock?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan US Quality Factor ETF (Symbol: JQUA) where we have detected an approximate $420.6 million dollar outflow -- that's a 5.2% decrease week over week (from 126,650,000 to 120,050,000). Among the largest underlying components of JQUA, in trading today McDonald's Corp (Symbol: MCD) is down about 0.6%, Accenture plc (Symbol: ACN) is down about 0.1%, and ServiceNow Inc (Symbol: NOW) is lower by about 0.5%. For a complete list of holdings, visit the JQUA Holdings page » The chart below shows the one year price performance of JQUA, versus its 200 day moving average:
Looking at the chart above, JQUA's low point in its 52 week range is $49.2541 per share, with $64.3476 as the 52 week high point — that compares with a last trade of $63.49. 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: JQUA, MCD, ACN, NOW

Salesforce‘s CRM Agentforce, which combines AI agents, humans, applications and enterprise data, uses LLM to build, deploy and manage workflows for processes in sales, service and marketing, is gaining traction as implied by its ARR of $540 million in third-quarter fiscal 2026, which grew 330% on a year-over-year basis.
Salesforce was able to close more than 18,500 Agentforce deals since its launch, among which 9,500 were paid transactions. The company also reported that more than 50% of new Agentforce bookings from existing customers expanded. Agentforce processed 3.2 trillion tokens since its launch, among which 540 billion tokens were in October, up 25% sequentially.
Agentforce has been able to achieve a remarkable feat of processing 1.2 billion LLM calls to date, among which more than 200 million LLM calls were processed in the third quarter alone. All this indicates strong early adoption and confidence in the Agentforce platform’s value. Customers are moving rapidly from pilot programs to full production.
The consumption-based model, supported by newly introduced flexible payment options such as Flex Credits, is fueling demand for the Agentforce platform. This model can potentially drive recurring revenue growth over time, providing visibility and durability to Salesforce’s top line.
How Competitors Fare Against CRM Stock
Microsoft Corp. 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 Agentforce.
Salesforce’s Price Performance, Valuation and Estimates
Shares of Salesforce have lost 2.5% year to date against the Zacks Computer – Software industry’s decline of 4.9%.
CRM Six-Month Perfromance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, CRM trades at a forward price-to-sales ratio of 5.47, significantly below the industry’s average of 7.55.
CRM Forward 12 Months (P/S) Valuation Chart
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 15.10% and 10.53%, respectively. Estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past seven days.
Image Source: Zacks Investment Research
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

CRM's Agentforce ARR Jumps 330% Y/Y: Is It the Next Growth Engine?

Key Points
ServiceNow offers AI chatbots for some of the largest corporations and has an impressive 97% renewal rate.
The company makes almost all of its revenue from annual subscriptions and continues to sign large contracts.
Some investors are worried about decelerating growth rates and an over-reliance on acquisitions to generate future growth.
The growth trajectory of automation suggests that robotics stocks might be a hot opportunity. Grand View Research projects that the robotic process automation market will achieve a 43.9% compounded annual growth rate (CAGR) from now until 2030. The research firm forecasts a $30.85 billion valuation for the entire market at 2030, which suggests a 466% growth rate from 2026 to 2030.
Many robotics stocks should rally with the industry. Chatbots, generative artificial intelligence (AI) models, and autonomous vehicles could replace mundane tasks and boost productivity. However, ServiceNow (NYSE: NOW) may be one of the top stocks to consider in the industry due to its effective chatbots, large customer base, and high retention rates.
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What ServiceNow does
ServiceNow provides GenAI-powered conversational chatbots to enterprise customers to handle mundane tasks and address basic customer support questions without human intervention. These bots also simplify internal workflows and boost productivity.
Traditional chatbots offer scripted responses to queries, but generative AI is changing the landscape. AI chatbots continue to learn and tap into an ever-growing knowledge bank that doesn't require human intervention. These robots learn from each interaction and act as valuable resources for workers.
ServiceNow makes almost all of its revenue from subscription plans. The company reported $3.4 billion in Q3 2025 revenue, which was up by 22% year over year. Subscription revenue made up $3.3 billion, which came to 97% of total sales. ServiceNow also has a healthy backlog based on $11.35 billion in remaining performance obligations.
Enterprise customers who use ServiceNow stick around for a while. It's hard and costly for customers to switch to another provider once they use ServiceNow's platform. That's why the company reported a 97% renewal rate among its customers. ServiceNow noted that the renewal rate was 98% if you exclude the closure of a large U.S. federal agency.
ServiceNow has a vast customer base
ServiceNow delivered high earnings growth rates in 2025, even with the closure of the large U.S. federal agency that brought in a lot of revenue for the company. It was able to absorb the impact of that loss because of a customer base consisting of nearly 8,400 businesses. That group of clients includes nearly 85% of the Fortune 500, which demonstrates ServiceNow's ability to work with top players and sign lucrative deals.
The dealmaking was still in full force in Q3 2025. ServiceNow finalized 103 transactions over $1 million in net new annual contract value (ACV) in the quarter, and it also ended the quarter with 553 customer contracts that come to more than $5 million in ACV. That latter figure is a 18% year-over-year improvement.
A high retention rate with this customer base and plenty of social proof from working with the largest enterprises position ServiceNow as a leader in the robotic process automation industry. The growth stock has been a long-term winner, too. ServiceNow shares are up by roughly 1,000% over the past decade.
Explaining the recent drop
Although ServiceNow is well-positioned to rally amid an AI robot boom, the stock has dipped this past month. ServiceNow spent $7.75 billion to acquire cybersecurity firm Armis, which has ruffled some feathers.
Critics of the deal argue that ServiceNow committed a lot of cash and debt to an acquisition that doesn't align with the business. Cybersecurity solutions may boost overall revenue, but not everyone sees a connection between cybersecurity and AI chatbots. It's a big investment and reflects ServiceNow's commitment to fuel growth with acquisitions, but investors weren't happy. Shares plunged by 11% on the day it was announced.
While strategic acquisitions can benefit a company in the long run, some corporations use acquisitions to fuel growth as their underlying businesses slow down. ServiceNow's 22% year-over-year revenue growth in Q3 is slower than in previous years. Furthermore, its net income only increased by 16% year over year, which may limit profit margin expansion in the future.
The company's recent acquisition of Moveworks is another expensive purchase that aims to offer more synergies but reflects a growing trend of using acquisitions to gain market share.
If these acquisitions pay off and accelerate revenue growth, ServiceNow will look like a winner at current prices. AI bot demand should continue to soar as they become more advanced and can handle more complicated tasks. ServiceNow isn't a speculative robotics stock due to its large customer base, and it could generate enticing returns if growth rates pick up again. The long-term growth of the industry suggests ServiceNow's business should gain market share.
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Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. 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.

Robotic Process Automation Set to Surge 466%: 1 Software Bot Stock to Buy Now

Salesforce CRM and ServiceNow NOW are two of the most important enterprise cloud software companies, helping large organizations modernize operations, automate workflows and manage critical business processes.
While both benefit from long-term digital transformation trends, their business momentum and execution profiles differ meaningfully. For investors trying to choose between these two software leaders, a closer look at their fundamentals, growth outlook and risks helps determine which stock currently offers a stronger investment case.
The Case for Salesforce Stock
Salesforce has long held the top position in the customer relationship management market, according to Gartner. The company’s vision now goes beyond customer management, and it is building a broader ecosystem focused on artificial intelligence (AI), data and collaboration. Acquisitions like Waii, Bluebirds, Informatica and Slack show Salesforce’s push to evolve into a more complete enterprise platform.
AI is now central to Salesforce’s growth story. Since the 2023 rollout of Einstein GPT, Salesforce has been embedding generative AI across its offerings to help companies automate processes, improve decision-making and strengthen customer relationships.
Its latest innovation, Agentforce, is gaining momentum. Combined with Data Cloud, these AI-driven offerings brought in $1.4 billion in recurring revenues in the third quarter of fiscal 2026, representing a 114% year-over-year increase. Agentforce alone generated $540 million in recurring revenues, up 330% year over year. More than 50% of Agentforce deals came from existing clients, showing Salesforce’s success in cross-selling AI features to its user base.
Nonetheless, Salesforce’s biggest challenge right now is slowing sales growth. For years, it has delivered strong double-digit revenue increases. However, that pace has now cooled to single digits. In the first nine months of fiscal 2026, revenues rose just 8.7% year over year. This slowdown reflects cautious enterprise spending amid economic uncertainty and geopolitical pressures.
This changing growth profile shows how businesses are adjusting their IT budgets. Instead of large digital transformation projects, many are opting for smaller, lower-risk investments. For Salesforce, this means it has to adapt its strategy to stay competitive and relevant.
The Case for ServiceNow Stock
ServiceNow has been benefiting from the rising adoption of its workflows as enterprises scale digital operations. The platform supports automation across IT, HR, finance, procurement, legal and support, helping customers drive efficiency and reduce time to value.
Momentum in large deals continues to remain strong. In the third quarter of 2025, ServiceNow closed 103 transactions with more than $1 million in net new annual contract value (ACV), including six deals of more than $10 million. The number of customers contributing more than $5 million in ACV reached 553 at the end of the third quarter.
ServiceNow's AI strategy stands out for its comprehensive approach to enterprise adoption. At Knowledge 2025, the company introduced an AI Control Tower offering a unified dashboard for business leaders to monitor AI agents running across enterprise systems, track adoption metrics and ensure governance compliance. The company's AI Agent Fabric enables first and third-party agents to communicate and collaborate, creating a powerful orchestration layer that competitors struggle to match.
Strategic partnerships amplify ServiceNow's competitive advantages. The company expanded its strategic partnership with NTT DATA and designated them as a strategic AI delivery partner to accelerate AI-led transformation for enterprises globally. These partnerships, combined with collaborations with NVIDIA on open-source AI models and integrations with major cloud providers, expand ServiceNow's addressable market while reducing implementation friction for customers.
The company's federal business grew more than 30% year over year in the third quarter of 2025, demonstrating strength in a traditionally challenging market segment that many software companies struggle to penetrate effectively.
CRM vs. NOW: Which Stock Has the Stronger Growth Outlook?
Both companies will benefit from the ongoing digital transformation trend, but ServiceNow’s growth profile appears stronger in the near term. The Zacks Consensus Estimate for NOW’s 2025 revenues and earnings per share (EPS) indicates a year-over-year surge of 20.5% and 24.5%, respectively. For 2026, the top and bottom lines are projected to grow 18.1% and 16.8%, respectively.
ServiceNow Growth Estimates
Image Source: Zacks Investment Research
By contrast, Salesforce’s fiscal 2026 estimates point to 9.5% revenue growth and a 14.6% EPS increase. For fiscal 2027, the top and bottom lines are projected to rise 10.8% and 10.5%, respectively.
Salesforce Growth Estimates
Image Source: Zacks Investment Research
CRM vs. NOW: Price Performance & Valuation Check
Shares of Salesforce and ServiceNow have fallen 2.4% and 25.2%, respectively, over the past six months.
Image Source: Zacks Investment Research
On the valuation front, Salesforce trades at a forward 12-month price-to-sales (P/S) multiple of 5.48, way below ServiceNow’s 10.23.
Image Source: Zacks Investment Research
Conclusion: ServiceNow Has the Edge
Salesforce is a stable and profitable company with a strong platform, but its growth has slowed. Meanwhile, ServiceNow continues to deliver stronger growth, better execution and clearer demand trends. Despite the higher valuation, ServiceNow has an edge over Salesforce as an investment right now.
Currently, ServiceNow and Salesforce each carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

Salesforce vs. ServiceNow: Which Cloud Software Stock Has the Edge?

Key Points
Netflix is the indomitable leader in streaming, and its advertising segment is gaining steam.
Broadcom supplies infrastructure to hyperscalers, and it backlog of AI revenue is growing.
ServiceNow's cloud business is robust and its AI solutions serve major customers.
A stock split is a corporate action where a company divides its existing shares into multiple new shares, which increases the total share count while proportionally decreasing the price per share. This can make the stock more affordable and liquid for investors without changing the total market value of the company or an investor's stake.
Plenty of stocks have initiated splits over the last several years, and some of those are quality businesses that could be poised to soar significantly in the coming years. If you have cash to put to work in stocks right now, here are three stock-split stocks to buy and hold for the long run that look to have significant upside potential.
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1. Netflix
Netflix (NASDAQ: NFLX) enacted a 10-for-1 stock split that went into effect on Nov. 17, 2025. At the time of this writing, shares are trading around $94. Currently, the median 12-month price target from analysts on Wall Street is around $133, which would represent upside of about 40% from its current price. The high end of the available price estimate anticipates as much as 62% upside in the next 12 months.
Netflix is increasingly benefiting from the growth engine of the ad-supported tier it launched in late 2022. The company is on pace to double its advertising business revenue in 2025 and its ads now reach 190 million monthly active viewers. This high-margin revenue stream provides a significant new path to profitability beyond traditional subscriptions.
Netflix's expansion into live programming, featuring the NFL and WWE, has proven highly successful in driving both subscriber acquisition and retention, as well as breaking viewership records. These events also command premium advertising rates, helping the company gain market share in areas where it previously lagged. Regions such as the Asia-Pacific and Latin America are also experiencing faster subscriber growth, offering a large, unsaturated addressable market.
In Q3 2025, Netflix's growth and engagement reached record highs, thanks to a diversified content slate including breakout original films, returning series, and massive live sports events. The animated film KPop Demon Hunters was the primary growth driver of the quarter and became Netflix's most-watched film ever with 325 million views. The second season of Wednesday was a major tentpole that recorded over 1 billion viewing minutes in Q3. Black Rabbit was also a top-performing original series for the quarter that generated over 1.2 billion minutes of viewing.
These hits contributed to a 17% year-over-year revenue increase (reaching $11.5 billion) and record viewing shares of 8.6% in the U.S. and 9.4% in the U.K. The content strength also fueled a record-breaking quarter for Netflix's advertising tier, with U.S. upfront commitments doubling from last year. Netflix continues to invest heavily in a diverse content pipeline and leverages its in-house adtech and data-driven recommendation algorithms to enhance user engagement and loyalty. The company is in the process of acquiring Warner Bros. Discovery in a massive $82.7 billion deal announced in early December 2025.
Although regulatory scrutiny and industry concerns about monopolies are significant hurdles, this acquisition would bring HBO, Warner Bros. Discovery's film/TV studios, and streaming service under Netflix's umbrella. As Netflix transitions into a mature, cash-generating business model, it remains the undisputed leader in streaming, with its scale and brand power providing a significant competitive advantage over rivals. Long-term investors would do well to capitalize on that growth trajectory.
2. Broadcom
Broadcom (NASDAQ: AVGO) executed a 10-for-1 stock split on July 15, 2024. At the time of this writing, shares trade for approximately $350 each, but some Wall Street analysts think the stock could realize an upside of 35% over the next 12 months, or even 58% on the high end. Since we're talking about stock splits, as a a side note, Broadcom's Canadian Depositary Receipts (CDRs), enacted a 6-for-1 stock split that took effect for trading on Nov. 14, 2025.
Broadcom is a leading supplier of custom AI accelerators (ASICs) and Ethernet switches for hyperscale data centers. Its customers include the likes of Alphabet's Google, Meta Platforms, Anthropic, and OpenAI. Broadcom reported a record revenue of $64 billion for fiscal year 2025. This represented a 24% increase compared to fiscal year 2024 revenue of $51.6 billion.
AI semiconductor revenue for fiscal year 2025 was $20 billion, representing a 65% year-over-year growth, and management expects this figure to double in Q1 of its fiscal year 2026. Meanwhile, semiconductor solutions generated $37 billion in revenue during the fiscal year, representing a 58% increase from the previous year. Infrastructure software revenue increased 26% year over year to $27 billion, primarily driven by the adoption of VMware Cloud Foundation.
The acquisition of VMware in November 2023 positioned Broadcom as a full-stack AI infrastructure vendor with a significant presence in enterprise software. This segment provides stable, high-margin, recurring revenue that helps offset potential margin pressures from AI hardware.
The company ended fiscal 2025 with a robust backlog of $73 billion in AI-related hardware orders. Profitability also soared in fiscal 2025, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) hitting $43 billion (up 35%) and Broadcom reported significant free cash flow of $26.9 billion.
Broadcom's dominant position in AI networking hardware, strong cash flow, high-margin software, and persistent AI demand are all positive indicators of where this business currently stands and where it's headed. This could be a compelling stock for long-term investors seeking to capitalize on a 'pick-and-shovel' play in the AI space.
3. ServiceNow
ServiceNow (NYSE: NOW) executed a 5-for-1 stock split on Dec. 18, 2025, with shares trading on a split-adjusted basis starting that day. This means that shares trade now for roughly $155 each. Wall Street analysts seem to be particularly enthusiastic about ServiceNow's growth prospects, with the median 12-month price target coming in at 640% above its current share price. The high 12-month stock price forecast is approximately 735%.
ServiceNow is a cloud-based enterprise platform that helps businesses automate and manage their digital workflows across IT, HR, customer service, security, and other departments. Essentially, the business acts as a central control tower, connecting people, processes, and systems and replacing manual tasks with streamlined, AI-powered processes. The company is strategically positioned to capitalize on the generative AI boom with its Now Assist suite of products.
These AI solutions are gaining strong traction and are targeted to reach $1 billion in annual contract value by the end of 2026. ServiceNow's platform is used by over 85% of Fortune 500 companies. This deep integration creates high switching costs and it boasts a high renewal rate of around 96% or higher.
ServiceNow's customers are large enterprises and organizations across nearly every major industry, including Walmart, Amazon, Microsoft, Apple, JPMorgan Chase, and the U.S. Department of Defense. ServiceNow has recently made major acquisition moves, buying AI firm Moveworks for $2.85 billion in March 2025. The company is also reportedly nearing a potential $7 billion acquisition of cybersecurity firm Armis, which would add critical device security and asset intelligence to its offerings and address the growing need for AI governance.
In Q3 2025, ServiceNow reported subscription revenue of $3.3 billion, up 22% from one year ago. The current remaining performance obligations stood at $11.4 billion as of Q3 2025, representing a 21% year-over-year growth. ServiceNow also delivered adjusted EPS of $4.82 and adjusted free cash flow of $592 million with a 17.5% margin.
An analyst downgrade and news of ServiceNow's acquisition ambitions for Armis, which would be its largest-ever deal, have weighed on the stock recently. There has also been generally more volatility among tech stocks lately. However, investors who believe in the company's future as a key player in AI workflow automation may want to take a second look.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, 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 Netflix 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 $504,994!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,218!*
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JPMorgan Chase is an advertising partner of Motley Fool Money. Rachel Warren has positions in Alphabet, Amazon, and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, JPMorgan Chase, Meta Platforms, Microsoft, Netflix, ServiceNow, Walmart, and Warner Bros. Discovery. The Motley Fool recommends Broadcom 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.

3 Stock-Split Stocks to Buy that Could Soar As Much as 40%, 35%, and 640%, According to Wall Street

Shares of Novo Nordisk A/S (NVO) climbed 7.3% after the U.S. FDA approved its drug GLP-1 pill for the treatment of overweight or obesity.
Huntington Ingalls Industries Inc.’s (HII) shares rose 0.3% following the U.S. government’s plan for a new "Trump class" of battleships, larger, faster and "100 times more powerful" than any previously built.
ServiceNow Inc.’s (NOW) shares fell 1.5% following the company’s decision to acquire cybersecurity startup Armis for $7.75 billion in cash.
Shares of ZIM Integrated Shipping Services Ltd. (ZIM) surged 5.8% following news that the board is evaluating several potential acquisitions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Dec 24, 2025

(RTTNews) - ServiceNow (NOW), a cloud-based solution for digital workflows provider, disclosed in a regulatory filing that it entered into an amendment to the previously filed employment agreement with William McDermott, Chairman and Chief Executive Officer. The amendment, effective January 1, 2026, confirms that McDermott will remain in service with the company through at least December 31, 2030.
The amendment further provides that McDermott's total compensation will be aligned with the Company's performance relative to its compensation peer group. Should he transition into the role of Executive Chairman, his compensation will be commensurate with the responsibilities associated with that position.
In addition, ServiceNow has amended its Executive Severance Policy, effective January 1, 2026. The updated policy revises certain severance payments and benefits that the CEO may become eligible to receive in the event of a Qualifying Termination, as defined in the policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ServiceNow Extends CEO Bill McDermott's Tenure Through 2030

The S&P 500 (SNPINDEX:^GSPC) rose 0.46% to 6,909.79 near record territory, the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.57% to 23,561.84 on tech and healthcare strength, and the Dow Jones Industrial Average (DJINDEX: ^DJI) edged up 0.16% to 48,442.41 in quiet holiday trading.
Market movers
Obesity-drug leader Novo Nordisk (NYSE:NVO) advanced on FDA approval of its Wegovy pill, lifting healthcare sentiment, while software giant ServiceNow (NYSE:NOW) slid nearly 3% after unveiling a $7.75 billion deal for cybersecurity firm Armis, pressuring large-cap software within the Nasdaq.
What this means for investors
Economic momentum remained firm, with third-quarter GDP growth of 4.3% supporting risk appetite as markets held near record levels. For investors, the takeaway is less about short-term momentum and more about policy expectations, as resilient growth gives the Federal Reserve room to remain patient on rate cuts while forecasts extend into 2026.
Mega-cap technology and AI stocks remain the primary drivers of index performance, a dynamic that can lift indexes while masking thinner participation. Healthcare strength following Novo Nordisk’s Wegovy pill approval reflected investor interest in businesses with more predictable demand as questions around rates and growth persist.
Market mechanics are increasingly shaping the near-term picture. With holiday schedules thinning volume, price action is more easily driven by positioning, making daily moves a less reliable signal. Investors are likely to look past short-term fluctuations until markets reopen fully, when upcoming economic data and early-year earnings guidance should provide a clearer test of whether the rally can extend beyond its current leaders.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool recommends Novo Nordisk. 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.

Stock Market Today, Dec. 23: U.S. Stocks Hold Near Records on Narrow Tech-Led Gains

Key Points
Sold all 11,304 shares of monday.com; net position change of $3.55 million.
The fund had invested in monday.com since 2023.
On November 13, 2025, Evolutionary Tree Capital Management, LLC disclosed in an SEC filing that it sold out of monday.com (NASDAQ:MNDY), exiting its $3.55 million position.
What happened
According to its SEC filing dated November 13, 2025, Evolutionary Tree Capital Management, LLC sold its entire holding of monday.com, totaling 11,304 shares. The transaction value, based on average quarterly pricing, was $3,554,882. The fund now reports no position in the company, following normal trading activity for the quarter ended September 30, 2025.
What else to know
Evolutionary Tree Capital Management, LLC fully divested from monday.com, which now represents 0% of its 13F reportable assets under management.
Top holdings after the filing:
NASDAQ: MSFT: $8.85 million (9.7% of AUM)
NASDAQ: AMZN: $8.10 million (8.8% of AUM)
NYSE: NOW: $4.90 million (5.3% of AUM)
NYSE: RBLX: $4.74 million (5.2% of AUM)
NASDAQ: NFLX: $4.55 million (5.0% of AUM)
As of November 12, 2025, shares of monday.com were priced at $159.11, down 38.94% over the past year, underperforming the S&P 500 by 56.34 percentage points.
Company Overview
Price (as of market close November 12, 2025)
$159.11
Market Capitalization
$8.21 billion
Revenue (TTM)
$1.16 billion
Net Income (TTM)
$65.05 million
Company Snapshot
Offers a cloud-based Work OS platform enabling organizations to build custom workflow and project management applications; product suite includes solutions for marketing, CRM, software development, and operational management.
Generates revenue primarily through subscription-based licensing of its SaaS platform, with additional income from value-added services such as onboarding and customer support.
Serves a global customer base spanning enterprises, SMBs, government, and educational institutions across the United States, EMEA, and other international markets.
monday.com operates at scale as a leading provider of flexible work management software, supporting over 2,500 employees and a diversified international client base. The company leverages a modular, cloud-native platform to drive digital transformation and operational efficiency for organizations of all sizes. Its competitive advantage lies in its highly customizable, user-friendly interface and its ability to address a wide range of business functions within a single unified system.
Foolish take
Evolutionary Tree appears to have sold out of its monday.com position after its pullback had already occurred.
The SaaS stock had risen steadily since the end of the 2022 bear market. However, monday.com experienced its first significant pullback in years over the summer.
Evolutionary Tree invests primarily in tech stocks. Although Microsoft and Amazon are its largest positions, most of its positions are tech growth stocks like monday.com.
With this stock, the timing is interesting since Evolutionary Tree began accumulating its Monday.com shares in 2023. It appears to have begun buying shares close to the price where it unloaded its entire position in the third quarter of 2025. It also continued adding shares over the years, implying that it likely lost money on this stock.
Ultimately, we do not know why the fund exited its monday position. Still, given the recent revenue slowdown and what looks like a lack of gains over the last two years, Evolutionary Tree seems to feel like sometimes it is best to admit a mistake and move on, which is often a wise decision when specific positions do not work out as planned.
Glossary
13F AUM: Assets under management reported by institutional investment managers in quarterly SEC Form 13F filings.
Divested: Sold off or disposed of an asset or investment, fully or partially, from a portfolio.
Stake: The ownership interest or share held in a company by an investor or fund.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
CAGR: Compound Annual Growth Rate; the mean annual growth rate of an investment over a specified period, assuming compounding.
Work OS: A cloud-based platform enabling users to build custom workflow and project management applications.
SaaS: Software as a Service; software delivered online via subscription rather than installed locally.
Value-added services: Additional services provided beyond the core product, such as onboarding or customer support, often for extra fees.
Cloud-native: Software designed specifically to run and scale efficiently in cloud computing environments.
Digital transformation: The integration of digital technology into all areas of a business to improve operations and value delivery.
Modular platform: A system built from separate components that can be independently developed, replaced, or upgraded.
Unified system: A single platform that integrates multiple business functions or processes for streamlined management.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 975%* — a market-crushing outperformance compared to 193% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of December 23, 2025.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, Monday.com, Netflix, Roblox, and ServiceNow. The Motley Fool 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.

ServiceNow, Inc.

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