We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NOW's AI Offerings Boost Enterprise Footprint: What Lies Ahead?
Read MoreHide Full Article
Key Takeaways
ServiceNow secured 21 deals with five or more Now Assist products in second-quarter 2025.
Workflow Data Fabric featured in 17 of NOW's top 20 deals, driving faster, smarter enterprise outcomes.
New Zurich platform and AI Experience boost AI adoption through autonomous, secure workflows.
ServiceNow (NOW - Free Report) is rapidly gaining traction among enterprises with its ServiceNow AI Platform. In second-quarter 2025, the company had 21 deals with five or more Now Assist products, and plus products were included in 18 of its top 20 deals. Deals including AI Pro Plus across ITSM, CSM and HR jumped more than 50% on a sequential basis.
Enterprises including Adobe, Aptiv, Visa, EY, ExxonMobil, and Standard Chartered are leveraging ServiceNow AI to accelerate sales cycles, improve service delivery and streamline complex operations. The introduction of an AI-powered CRM, strong enterprise adoption of Pro Plus and Now Assist, and deeper integrations with partners like Microsoft and NVIDIA have further expanded ServiceNow’s reach.
NOW is gaining a footprint among enterprises with Workflow Data Fabric included in 17 of the company’s top 20 deals. Through Workflow Data Fabric, ServiceNow offers a combination of data, analytics and AI that, along with agentic AI, helps enterprises get faster and smarter outcomes. CRM workflow offers a massive growth opportunity for ServiceNow, driven by sales and order management solutions and acquisitions of Logik.ai, which helped NOW close nine CPQ deals in June alone.
An expanding portfolio is expected to further boost footprint among enterprises. NOW’s latest Zurich platform promises rapid AI adoption through the combination of multi-agentic AI development, enterprise-grade security and autonomous workflows. The latest offering, AI Experience delivers a seamless interface connecting people, data, and systems for enhanced productivity and collaboration.
AI Experience offers AI-powered hands-free Voice and Web Agents to automate multistep tasks and natural interactions across enterprise systems, alongside Data Explorer, which unlocks deep insights using natural language queries. The AI-powered Lens feature enables quick data capture and workflow execution directly from dashboards. AI Control Tower helps enterprises in deploying AI Experience without losing security or control.
Atlassian’s AI-powered capabilities are seeing rapid adoption, with more than 2.3 million monthly active users engaging with Atlassian Intelligence features, marking a 20 times year-over-year increase in AI interactions during the fourth quarter of fiscal 2025.
ServiceNow faces stiff competition from Salesforce and Oracle in CRM workflow solutions. Oracle’s solutions span IT operations, automation, and cloud infrastructure — areas where NOW also maintains a presence. Oracle’s rich partner base that includes the likes of OpenAI, Meta Platforms, NVIDIA and AMD is a key catalyst.
Meanwhile, Salesforce continues to see broad adoption of its platform as enterprises connect sales, service, marketing and analytics workflows under one system. Salesforce has extended its ecosystem through integrations with Snowflake, Databricks, Google BigQuery, and Amazon Redshift to support zero-copy data access and streamline AI workflows.
ServiceNow shares have lost 14.8% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 21.6% but outperforming the Zacks Computers-IT Services industry’s decline of 15%.
NOW Stock Lags Sector, Beats Industry
Image Source: Zacks Investment Research
ServiceNow stock is overvalued, with a forward 12-month price/sales of 12.49X compared with the broader sector’s 6.83X. NOW has a Value Score of F.
NOW Shares Trading at a Premium
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.21 per share, which has remained unchanged over the past 30 days, suggesting 13.2% year-over-year growth. The consensus mark for fourth-quarter 2025 earnings is pegged at $4.40 per share, which has remained intact over the past 30 days, implying 19.9% year-over-year improvement.
Image: Bigstock
NOW's AI Offerings Boost Enterprise Footprint: What Lies Ahead?
Key Takeaways
ServiceNow (NOW - Free Report) is rapidly gaining traction among enterprises with its ServiceNow AI Platform. In second-quarter 2025, the company had 21 deals with five or more Now Assist products, and plus products were included in 18 of its top 20 deals. Deals including AI Pro Plus across ITSM, CSM and HR jumped more than 50% on a sequential basis.
Enterprises including Adobe, Aptiv, Visa, EY, ExxonMobil, and Standard Chartered are leveraging ServiceNow AI to accelerate sales cycles, improve service delivery and streamline complex operations. The introduction of an AI-powered CRM, strong enterprise adoption of Pro Plus and Now Assist, and deeper integrations with partners like Microsoft and NVIDIA have further expanded ServiceNow’s reach.
NOW is gaining a footprint among enterprises with Workflow Data Fabric included in 17 of the company’s top 20 deals. Through Workflow Data Fabric, ServiceNow offers a combination of data, analytics and AI that, along with agentic AI, helps enterprises get faster and smarter outcomes. CRM workflow offers a massive growth opportunity for ServiceNow, driven by sales and order management solutions and acquisitions of Logik.ai, which helped NOW close nine CPQ deals in June alone.
An expanding portfolio is expected to further boost footprint among enterprises. NOW’s latest Zurich platform promises rapid AI adoption through the combination of multi-agentic AI development, enterprise-grade security and autonomous workflows. The latest offering, AI Experience delivers a seamless interface connecting people, data, and systems for enhanced productivity and collaboration.
AI Experience offers AI-powered hands-free Voice and Web Agents to automate multistep tasks and natural interactions across enterprise systems, alongside Data Explorer, which unlocks deep insights using natural language queries. The AI-powered Lens feature enables quick data capture and workflow execution directly from dashboards. AI Control Tower helps enterprises in deploying AI Experience without losing security or control.
Tough Competition Hurts ServiceNow Prospects
NOW is facing stiff competition from the likes of Atlassian (TEAM - Free Report) , Salesforce (CRM - Free Report) and Oracle (ORCL - Free Report) .
Atlassian’s AI-powered capabilities are seeing rapid adoption, with more than 2.3 million monthly active users engaging with Atlassian Intelligence features, marking a 20 times year-over-year increase in AI interactions during the fourth quarter of fiscal 2025.
ServiceNow faces stiff competition from Salesforce and Oracle in CRM workflow solutions. Oracle’s solutions span IT operations, automation, and cloud infrastructure — areas where NOW also maintains a presence. Oracle’s rich partner base that includes the likes of OpenAI, Meta Platforms, NVIDIA and AMD is a key catalyst.
Meanwhile, Salesforce continues to see broad adoption of its platform as enterprises connect sales, service, marketing and analytics workflows under one system. Salesforce has extended its ecosystem through integrations with Snowflake, Databricks, Google BigQuery, and Amazon Redshift to support zero-copy data access and streamline AI workflows.
ServiceNow Share Price Performance, Valuation & Estimates
ServiceNow shares have lost 14.8% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 21.6% but outperforming the Zacks Computers-IT Services industry’s decline of 15%.
NOW Stock Lags Sector, Beats Industry
Image Source: Zacks Investment Research
ServiceNow stock is overvalued, with a forward 12-month price/sales of 12.49X compared with the broader sector’s 6.83X. NOW has a Value Score of F.
NOW Shares Trading at a Premium
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.21 per share, which has remained unchanged over the past 30 days, suggesting 13.2% year-over-year growth. The consensus mark for fourth-quarter 2025 earnings is pegged at $4.40 per share, which has remained intact over the past 30 days, implying 19.9% year-over-year improvement.
ServiceNow, Inc. Price and Consensus
ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote
ServiceNow currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.