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Jordan

Long-Term Stock Investor, Compounding & Portfolio Construction

29 Oct, 16:58Latest

ServiceNow's unexpected expense surge makes its rich valuation more vulnerable in a struggling software sector. Revenue rose 21%, but spending drove an EPS miss and one quarter of guided cRPO deceleration; wider market conditions could hurt near term. The 20% selloff looks excessive, and few software companies should benefit as much from AI. Management could deliver over 3-5 years, though the stock is only close to a buy again now; below $100 looks good for the long term. x.com x.com x.com x.com

NOW

28 Oct, 22:30

ServiceNow's 21% revenue growth makes the 20% after-hours earnings selloff look harsh, even with its rich valuation. Subscription growth, free cash flow, backlog and AI-specific growth are all very good. It remains a growth company over the next five years and should deliver some pleasant surprises along the way. Margins and acquisition performance need watching, but are not yet a concern. x.com

NOW

Stephanie Link

Chief Investment Strategist & Portfolio Manager at Hightower, Contributor to CNBC

29 Oct

NOW

ServiceNow's third-quarter subscription revenue, cRPO and operating-margin beats make its double-digit selloff look overdone. After a 77% rise from April lows, it needed a big beat and raise; lower fourth-quarter cRPO guidance and back-loaded implications for $30-$32 billion in subscription growth by 2030 leave the stock in show-me mode. x.com

Joel

Long-Term Growth Investor & Options Trader

29 Oct

NOW

ServiceNow's AI contract growth and improving free cash flow margin make the 18% selloff excessive and its shares a massive discount among leading enterprise AI companies. AI net-new ACV rose 65%; its 2026 AI ACV target rose to $1.7B, up 70% from the start of the year. Adjusted operating margin slipped to 32.5% from 33.5%, but free cash flow margin rose to 20% from 17.5%. Acquisition costs, stock compensation and severance largely drove the GAAP decline. x.com x.com x.com

LongGameEquity

Long-Term Investor, AI & Software

18h ago

NOW

ServiceNow's costs are rising far faster than revenue without the RPO acceleration management promised. Q3 revenue rose 21%, while total cost of revenue climbed 56% and net income fell 45%; stock compensation appears to be using about half of free cash flow. The selloff looks deserved, though the shares are now closer to fair value. Sustainable margins and measurable returns remain the test. x.com x.com x.com x.com x.com x.com

Noah

Stock Investor & Trader, US Equities

20h ago

NOW

Cost fears and CRPO misunderstandings caused ServiceNow's selloff. The stock is definitely undervalued; the market's reaction is ridiculous. x.com

Ashton Invests

Long-Term Equity Investor, Fundamental Stock Research

29 Oct

NOW

ServiceNow keeps selling more to existing customers over time, one of the biggest reasons to be bullish long term. Its 2011 customer cohort's annual contract value grew from an indexed $100 to $3,730 by Q3 2026, or 37.3x, even including customer losses. x.com

Bill 'Latency Lord' Brennan

Fundamental Growth Investor, B2B/Sector Leaders & Picks-and-Shovels

29 Oct

NOW

ServiceNow's growth and deteriorating margins do not justify its valuation. It grew 3% quarter over quarter against a 107x trailing GAAP P/E, and its margins continue to deteriorate. It remains a great company, but is mostly saturated relative to that valuation. x.com x.com x.com

Yimin X

Founder of YX Insights, Ex-FX/Rates Market Maker

15 Sep

NOW

ServiceNow has room for valuation expansion. Based on the historical link between its revenue growth and EV/Sales, 11.9x NTM sales is fair for a 20% three-year revenue CAGR, implying $205 a share, 44% above $142.35. Q2 subscription revenue rose 23% in constant currency to $3.9B, beating the top of guidance, and AI contract value crossed $1B. The offset: GAAP operating income fell from $358M to $162M and gross margin slipped on hyperscaler and frontier-model costs. x.com x.com x.com x.com x.com … Show more

Investing visuals

Technology Investor, Visual Company Research

25 Jul

NOW

ServiceNow is a great business at a great price, now at its lowest valuation multiple ever. Revenue has doubled from $7 billion to $14 billion since 2022 while the stock sits roughly where it was then. SaaS narrative headwinds persist, but the business is doing great, and once sentiment shifts the shares could trade significantly higher. Unlike Nike, whose stock rightly reflects a declining business, ServiceNow is still growing. x.com x.com x.com

Nicholas Mugalli

Institutional TMT & Macro Research, AI/Semiconductors/Policy

28 Oct

NOW

ServiceNow's seat business is being cannibalized faster than AI deals can replace it. Next-quarter cRPO growth is guided to 18.5%, down from 20.5%, while subscription growth was 24.5% two quarters ago; agentic usage on its platform is up 13x. Management points to AI deal value heading to $1.7bn, against a roughly $16bn subscription business. The slowdown leaves more pain ahead. Underweight, $90 target. x.com x.com

J Keynes

Growth Investment Research

15 Apr

NOW

ServiceNow should revalue from a silly low price because it is a blue-chip software company with a sticky customer base and big insider buying. Fears that frontier AI models will replace it are completely overblown. x.com x.com

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