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Disclosure: The author holds a long position in NOW.

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NOW

Analysis as of: 2025-12-27

ServiceNow, Inc.

ServiceNow provides a cloud software platform that automates and orchestrates enterprise workflows across IT, employee, customer, and risk/security operations.

ai automation cloud enterprise software

On Yahoo Finance ...

Jump to: Summary • Analysis • Opportunity • Risk • Trends • Third Party Analyst Consensus

Summary

Workflow Orchestration Becomes the Governed AI Work Layer

The platform’s upside is tied to being the trusted execution and audit layer for AI agents across enterprise processes. Growth can remain strong if AI monetization and security expansion scale without eroding SaaS margins.

Analysis

Thesis

As AI makes “doing the work” cheap, enterprises pay for governed execution; ServiceNow can become the orchestration, permissions, and audit layer for human+agent workflows across IT, employee, customer, and security domains, sustaining high growth while its valuation multiple compresses only partially.

Last Economy Alignment

Best positioned at the scarce layer—trusted execution, governance, and distribution inside enterprises—rather than commoditized model intelligence.

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Opportunity Outlook

Average Implied Multiple (to 2030)

2.2x (from 5 most recent analyses)

Reasoning

ServiceNow is already a scaled, mission-critical workflow layer with strong renewals and expanding product surface area. The non-linear upside is less “more tickets” and more “more autonomous work executed”: AI agents increase workflow frequency, require governance/verification, and expand the budget category into security and cross-enterprise operations. With disciplined execution and partner-led scaling, a still-premium (but lower than today) software multiple is plausible.

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Risk Assessment

Overall Risk Summary

The main risks are (1) premium-multiple fragility if growth decelerates, (2) suite-vendor bundling of agent governance/orchestration, and (3) execution/capital structure complexity from large security M&A plus a shift toward usage/outcome-based monetization.

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Trends

Key Changes

Dec 23, 2025: Announced agreement to acquire Armis for $7.75B cash; expected close in 2H 2026.
Dec 18, 2025: Began trading split-adjusted after 5-for-1 stock split approval and distribution.
Post-announcement trading: market reaction suggests increased investor sensitivity to M&A-driven growth.

Thesis update

Security expansion (Armis) strengthens the “trusted execution + cyber” adjacency, but raises integration and funding discipline requirements.

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Third Party Analyst Consensus

12-Month Price Target

$223.29

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