ServiceNow Positioned as Future Trillion-Dollar Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NOW?
Source: Fool
- Market Potential: With only 11 companies valued over $1 trillion on U.S. exchanges, ServiceNow, currently valued at over $100 billion, demonstrates significant potential in the AI sector, likely attracting more investor interest in the future.
- Acquisition Strategy: ServiceNow's recent acquisitions of Moveworks for $2.85 billion and Armis for $7.75 billion, while raising concerns over costs, significantly enhance its cybersecurity capabilities, thereby strengthening its competitive position in the AI solutions market.
- Rapid Growth in AI Solutions: The Now Assist AI solution suite has reached an annual contract value of $600 million, with expectations to hit $1 billion by 2026, showcasing strong growth momentum in enterprise AI applications and further solidifying its market leadership.
- Share Buyback Program: The company announced a $5 billion share repurchase authorization, including a $2 billion accelerated buyback, reflecting management's confidence in the current valuation and creating additional value for shareholders.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 103.870
Low
172.00
Averages
222.81
High
263.00
Current: 103.870
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ServiceNow Aims for $1 Trillion Valuation
- Significant Market Potential: ServiceNow, currently valued at over $100 billion, is projected by CEO Bill McDermott to achieve a tenfold increase, reflecting strong confidence in the company's capabilities within the AI sector.
- Acquisition Strategy: The company recently acquired Moveworks for $2.85 billion and Armis for $7.75 billion, which, despite concerns over the high costs, positions ServiceNow to enhance its cybersecurity and AI service offerings significantly.
- AI Solutions Growth: ServiceNow's Now Assist AI solution suite has reached an annual contract value of $600 million, with expectations to exceed $1 billion this year, indicating robust growth and demand for enterprise AI applications.
- Share Repurchase Program: The announcement of a $5 billion share repurchase authorization, including a $2 billion accelerated buyback, demonstrates management's confidence in the stock's current valuation and aims to enhance shareholder value.
See More
ServiceNow Positioned as Future Trillion-Dollar Company
- Market Potential: With only 11 companies valued over $1 trillion on U.S. exchanges, ServiceNow, currently valued at over $100 billion, demonstrates significant potential in the AI sector, likely attracting more investor interest in the future.
- Acquisition Strategy: ServiceNow's recent acquisitions of Moveworks for $2.85 billion and Armis for $7.75 billion, while raising concerns over costs, significantly enhance its cybersecurity capabilities, thereby strengthening its competitive position in the AI solutions market.
- Rapid Growth in AI Solutions: The Now Assist AI solution suite has reached an annual contract value of $600 million, with expectations to hit $1 billion by 2026, showcasing strong growth momentum in enterprise AI applications and further solidifying its market leadership.
- Share Buyback Program: The company announced a $5 billion share repurchase authorization, including a $2 billion accelerated buyback, reflecting management's confidence in the current valuation and creating additional value for shareholders.
See More
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- Critique of ICE: The letter emphasizes Benioff's unique influence in Washington, urging him to leverage this to issue a public statement condemning ICE's conduct and to establish clear prohibitions against the use of Salesforce's cloud and AI products for state violence, reflecting a strong stance on ethical product usage.
- Workforce Reductions: In September 2025, Salesforce cut 4,000 customer support roles, reducing its support workforce from 9,000 to 5,000 employees, indicating a strategic shift towards AI integration and a reallocation of human resources in response to technological advancements.
- Stock Performance: Salesforce's stock has declined by 40.37% over the past year, although it saw a slight increase of 0.30% to close at $193.45 on Tuesday, indicating ongoing market concerns regarding the company's future performance and stability.
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- Corporate Leadership Voices: Executives like Apple CEO Tim Cook and OpenAI's Sam Altman have recently expressed concerns over tightening immigration policies, indicating a growing awareness in the corporate sector regarding immigration issues, which could impact company reputation and employee morale.
- Uncertain Financial Outlook: Salesforce is set to report its Q4 results on February 25, with analysts expecting a nearly 12% revenue increase to $11.2 billion and a nearly 10% rise in adjusted earnings to $3.05 per share; however, the stock has fallen 27% recently, raising investor concerns about AI models potentially undermining software companies' growth prospects.
- Layoff News: Earlier this month, Salesforce cut 1,000 roles across marketing, product management, and data analytics, although no official statement has been released, this move may further affect employee morale and company culture.
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- Revenue Growth Forecast: Axon's revenue is expected to grow 31% to $2.74 billion in 2025, and despite a current price-to-sales ratio of 14, it is viewed as a solid investment due to its strong competitive advantages and long-term growth potential.
- Stable Customer Base: Axon's clientele primarily consists of state and local law enforcement agencies, which are less inclined to pursue custom AI software, providing resilience during market fluctuations and ensuring continued use of its software suite.
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- Controversial Tech Use: The letter highlights Salesforce's pitches of AI technology to ICE for rapidly hiring 10,000 new agents, raising concerns that this could expand ICE's operational capacity and provoke greater social controversy and ethical responsibility.
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- Lack of Transparency Issues: Employees are demanding clarity on the scope and governance of Salesforce's services to ICE, arguing that the opacity prevents informed decision-making and poses personal and professional risks, which could undermine internal trust and company culture.
See More
ServiceNow Aims for $1 Trillion Valuation
- Significant Market Potential: ServiceNow, currently valued at over $100 billion, is projected by CEO Bill McDermott to achieve a tenfold increase, reflecting strong confidence in the company's capabilities within the AI sector.
- Acquisition Strategy: The company recently acquired Moveworks for $2.85 billion and Armis for $7.75 billion, which, despite concerns over the high costs, positions ServiceNow to enhance its cybersecurity and AI service offerings significantly.
- AI Solutions Growth: ServiceNow's Now Assist AI solution suite has reached an annual contract value of $600 million, with expectations to exceed $1 billion this year, indicating robust growth and demand for enterprise AI applications.
- Share Repurchase Program: The announcement of a $5 billion share repurchase authorization, including a $2 billion accelerated buyback, demonstrates management's confidence in the stock's current valuation and aims to enhance shareholder value.
See More
ServiceNow Positioned as Future Trillion-Dollar Company
- Market Potential: With only 11 companies valued over $1 trillion on U.S. exchanges, ServiceNow, currently valued at over $100 billion, demonstrates significant potential in the AI sector, likely attracting more investor interest in the future.
- Acquisition Strategy: ServiceNow's recent acquisitions of Moveworks for $2.85 billion and Armis for $7.75 billion, while raising concerns over costs, significantly enhance its cybersecurity capabilities, thereby strengthening its competitive position in the AI solutions market.
- Rapid Growth in AI Solutions: The Now Assist AI solution suite has reached an annual contract value of $600 million, with expectations to hit $1 billion by 2026, showcasing strong growth momentum in enterprise AI applications and further solidifying its market leadership.
- Share Buyback Program: The company announced a $5 billion share repurchase authorization, including a $2 billion accelerated buyback, reflecting management's confidence in the current valuation and creating additional value for shareholders.
See More
Salesforce Employees Urge CEO to Condemn ICE Actions
- Employee Advocacy: Salesforce employees are urging CEO Marc Benioff to publicly condemn the actions of U.S. Immigration and Customs Enforcement (ICE) while calling for a ban on the use of Salesforce software by immigration agents, highlighting a growing concern for the company's ethical responsibilities.
- Critique of ICE: The letter emphasizes Benioff's unique influence in Washington, urging him to leverage this to issue a public statement condemning ICE's conduct and to establish clear prohibitions against the use of Salesforce's cloud and AI products for state violence, reflecting a strong stance on ethical product usage.
- Workforce Reductions: In September 2025, Salesforce cut 4,000 customer support roles, reducing its support workforce from 9,000 to 5,000 employees, indicating a strategic shift towards AI integration and a reallocation of human resources in response to technological advancements.
- Stock Performance: Salesforce's stock has declined by 40.37% over the past year, although it saw a slight increase of 0.30% to close at $193.45 on Tuesday, indicating ongoing market concerns regarding the company's future performance and stability.
See More
Salesforce Employees Demand End to ICE Partnership Amid Immigration Concerns
- Employee Collective Action: Over 1,400 Salesforce employees have signed a letter urging CEO Marc Benioff to cease any potential collaboration with U.S. Immigration and Customs Enforcement (ICE), reflecting strong opposition to the company's ties with ICE, particularly in light of recent violent incidents involving the agency.
- Corporate Leadership Voices: Executives like Apple CEO Tim Cook and OpenAI's Sam Altman have recently expressed concerns over tightening immigration policies, indicating a growing awareness in the corporate sector regarding immigration issues, which could impact company reputation and employee morale.
- Uncertain Financial Outlook: Salesforce is set to report its Q4 results on February 25, with analysts expecting a nearly 12% revenue increase to $11.2 billion and a nearly 10% rise in adjusted earnings to $3.05 per share; however, the stock has fallen 27% recently, raising investor concerns about AI models potentially undermining software companies' growth prospects.
- Layoff News: Earlier this month, Salesforce cut 1,000 roles across marketing, product management, and data analytics, although no official statement has been released, this move may further affect employee morale and company culture.
See More
Software Stocks Rebound, Axon Enterprise a Buy
- Axon Overview: Axon Enterprise (AXON) focuses on hardware and software products for law enforcement, having performed well over the past decade; however, its stock has dropped about 50% from six months ago, reflecting market volatility's impact.
- Revenue Growth Forecast: Axon's revenue is expected to grow 31% to $2.74 billion in 2025, and despite a current price-to-sales ratio of 14, it is viewed as a solid investment due to its strong competitive advantages and long-term growth potential.
- Stable Customer Base: Axon's clientele primarily consists of state and local law enforcement agencies, which are less inclined to pursue custom AI software, providing resilience during market fluctuations and ensuring continued use of its software suite.
- Atlassian's Challenges: In contrast to Axon, Atlassian (TEAM) achieved a 23% revenue growth in the latest quarter but has seen its stock plummet 72% over the past year due to competitive pressures from AI tools, and it has struggled to achieve GAAP profitability for a decade, warranting caution from investors.
See More
Salesforce Employees Urge CEO to Halt ICE Collaboration
- Employee Protest: Over 1,400 Salesforce employees have signed a letter urging CEO Marc Benioff to cease potential collaboration with ICE, reflecting significant employee dissatisfaction that could impact the company's reputation and morale.
- Controversial Tech Use: The letter highlights Salesforce's pitches of AI technology to ICE for rapidly hiring 10,000 new agents, raising concerns that this could expand ICE's operational capacity and provoke greater social controversy and ethical responsibility.
- Negative Market Reaction: Salesforce's stock has declined approximately 27% in 2026, with investor worries about AI models potentially harming growth prospects for software companies intensifying, and employee protests may further exacerbate market unease regarding the company.
- Lack of Transparency Issues: Employees are demanding clarity on the scope and governance of Salesforce's services to ICE, arguing that the opacity prevents informed decision-making and poses personal and professional risks, which could undermine internal trust and company culture.
See More
