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 

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 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 

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 

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

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 

ServiceNow is undervalued by 26%, and it is still early. Nvidia CEO Jensen Huang said entire manufacturing lines will be run by robots operating on top of ServiceNow and managed just like employees, a generational signal to buy. ServiceNow ranks first among the best software stocks to own over the next two years. x.com 

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 

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 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