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 

ServiceNow's Q2 2026 results refute the bear case that AI is demo buzz without monetization. AI products crossed $1B in annual contract value, net new AI ACV accelerated over 40% sequentially, and customers running agentic AI in production grew ninefold in nine months, tracking toward a $1.5B full-year target. Revenue rose 24% to $3.99B, adjusted EPS of $0.90 beat $0.86, and cRPO grew 21% to $13.2B. Partnerships with Anthropic, Nvidia and Lenovo extend its role as an enterprise AI control tower. … Show more

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 

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 

ServiceNow's AI growth has debunked the "AI destroys software" fear, proving it an AI enabler rather than a victim. AI contract value is beating expectations, with AI revenue on track to clear $1.5B by end-2026 and ramp toward $9B+ by 2030, while subscription revenue compounds at 20%+. Pricing is shifting from seats toward outcomes, retention is best in class, and it pairs tens of billions in revenue with exceptional free cash flow. A deeper Tech Mahindra partnership adds enterprise AI reach. … Show more

ServiceNow's gross profit and expense trends show its underlying business deteriorating despite the AI revenue pitch. Quarterly gross profit grew just over 10% year over year, possibly its slowest pace ever, while expenses rose across the board and profit weakened materially. Relabeling revenue as AI has not changed the trend in total sales. x.com 

ServiceNow's AI business undercuts fears that AI will put it out of business. Its AI revenues are expected to surpass $1.5 billion by the end of 2026 and reach $9.6 billion in 2030. The stock rose 9% back to $137 a share. x.com  x.com 

ServiceNow ranks ninth on a numbered list of stocks, right after Intuitive Surgical. x.com 

ServiceNow's slowing contracted-revenue growth suggests agentic AI and growing open-source alternatives may be reducing the need for its products. Q3 operating margin fell to 9.4% from 16.8% a year earlier, net income dropped, and cRPO growth slowed from 25% to 20.5%; Q4 guidance implies 18.5%. x.com 

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