ServiceNow Rises 60% in a Year: Will the Momentum Continue in 2025?

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ServiceNow NOW shares have appreciated 60.3% in the trailing 12 months, outperforming the Zacks Computer & Technology sector and the Zacks Computers – IT Services industry’s returns of 34.7% and 20%, ...

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The companies are conne","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2125909759.SGD":"Natixis Thematics Safety H-R/A SGD","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","LU1712237335.SGD":"Natixis Mirova Global Sustainable Equity H-R-NPF/A SGD","USAW.SI":"AMZN 3xLongSG261006","SGXZ81514606.USD":"大华环球创新基金A Acc USD","LU0265550946.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A5\" (USD) INC","NVDX":"T-REX 2X LONG NVIDIA DAILY TARGET ETF","LU2065170008.USD":"M&G (LUX) GLOBAL MAXIMA \"A\" (USD) INC","LU0109392836.USD":"富兰克林科技股A","LU1670711123.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) INC","MSFT":"微软","NVD2.UK":"2X NVIDIA ETP","3NVD.UK":"LS 3X NVIDIA","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","NVD3.UK":"LS 3X NVIDIA","IE0009G5SDU7.USD":"PIMCO BALANCED INCOME AND GROWTH \"M\" (USD) INC","NVDS.UK":"LS -1X NVIDIA","ACV":"Virtus AllianzGI Diversified Income & Convertible Fund","NVDA":"英伟达","LU1003077747.HKD":"BGF GLOBAL EQUITY INCOME \"A6\" (HKDHDG) INC","NVDU":"Direxion Daily NVDA Bull 2X Shares","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","IE00BMPRXQ63.HKD":"NEUBERGER BERMAN NEXT GENERATION CONNECTIVITY FUND \"A\" (HKDHDG) ACC","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC","SGXZ31699556.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"C\" (SGDHDG) ACC","NVDS":"Tradr 1.5X Short NVDA Daily ETF","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0345769631.USD":"NINETY ONE GSF GLOBAL EQUITY \"A\" (USD) INC","LU1032466523.USD":"高盛全球多资产收益组合Acc","LU0788109477.HKD":"BGF GLOBAL ALLOCATION \"A2\" (HKDHGD) ACC","SG9999015341.SGD":"United Income Focus Trust Acc SGD-H","NVIW.SI":"NVDA 3xLongSG261006","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","AMZN":"亚马逊","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","NOW":"ServiceNow","SNVD.UK":"LS -1X NVIDIA","NVDD":"Direxion Daily NVDA Bear 1X Shares","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","LU2092937221.SGD":"Blackrock Circular Economy A2 SGD-H","BK4592":"伊斯兰概念","NVD":"GraniteShares 2x Short NVDA Daily ETF","LU0267386448.USD":"FIDELITY FIRST ALL COUNTRY WORLD \"A\" (USD) INC","LU2413666426.HKD":"BNP PARIBAS GLOBAL ENVIRONMENT \"C\" (HKD) ACC","2NVD.UK":"2X NVIDIA ETP","LU0080751232.USD":"富达环球多元动力基金A"},"translate_title":"ServiceNow一年内上涨60%：2025年这种势头会持续吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ACV":1,"AMZN":1,"MSFT":1,"NOW":1,"NVDA":1,"NVDS":0.6,"NVD":0.6,"NVD2.UK":0.6,"NVD3.UK":0.6,"NVDD":0.6,"NVDS.UK":0.6,"NVDU":0.6,"NVDX":0.6,"NVDY":0.6,"NVIW.SI":0.6,"SNVD.UK":0.6,"USAW.SI":0.6,"3NVD.UK":0.6,"2NVD.UK":0.6},"content_text":"ServiceNow NOW shares have appreciated 60.3% in the trailing 12 months, outperforming the Zacks Computer & Technology sector and the Zacks Computers – IT Services industry’s returns of 34.7% and 20%, respectively.NOW’s expanding Generative AI (GenAI) portfolio, expanding clientele, and rich partner base have been driving top-line growth. A strong partner base, which includes Amazon AMZN, Microsoft MSFT and NVIDIA NVDA, is strengthening ServiceNow’s AI capabilities.ServiceNow shares are trading above the 50-day and 200-day moving averages, indicating a bullish trend.\nNOW Trades Above 50-day & 200-day SMA\nImage Source: Zacks Investment Research\nLet us dig deeper to find out the factors driving NOW’s prospects.\nNOW Stock’s Performance\nImage Source: Zacks Investment Research\nNOW’s Strong Portfolio Expands Clientele\nServiceNow is extensively leveraging AI and machine learning technologies to boost the potency of its solutions. NOW’s expanding GenAI capabilities are noteworthy, as its total addressable market is expected to hit $275 billion in 2026.ServiceNow’s latest update, Xanadu, offers AI-powered, purpose-built industry solutions for domains, including telecom, media, and technology, financial services and the public sector. The Xanadu update adds the latest AI capabilities to boost customer agility, enhance productivity and improve employee experiences. It expands the GenAI portfolio to enterprise functions, including Security, and Sourcing & Procurement Operations.NOW plans to integrate Agentic AI into the ServiceNow platform and unlock 24/7 productivity at a massive scale. This service, available this November for Customer Service Management AI Agents and IT Service Management AI Agents, is expected to reduce the time to resolve an issue and make live agents more productive. Last month, ServiceNow announced that it is adding GenAI and governance innovations to the Now platform to foster responsible AI. NOW is adding more than 150 GenAI innovations to its portfolio, including new, expanded Now Assist capabilities with an AI Governance feature for secure and compliant AI practices.NOW’s strong portfolio is expected to help it win more clients. Exiting third-quarter 2024, ServiceNow had 2,020 total customers with more than $1 million in annual contract value (ACV). NOW had 15 deals greater than $5 million in net new ACV and six deals of more than $10 million. It closed 96 deals greater than $1 million net new ACV. Number of customers contributing more than $20 million or more grew nearly 40% year over year.Gen AI deals continued to gain traction in the reported quarter. ServiceNow had 44 new Now Assist customers spending more than $1 million in ACV, including six with more than $5 million and two with more than $10 million.\nRich Partner Base Bolsters NOW’s Prospects\nServiceNow and Amazon Web Services recently announced an expanded strategic collaboration with new capabilities to accelerate AI-driven business transformation. The companies are connecting Amazon Bedrock models to ServiceNow, which will help enterprises boost the development and deployment of GenAI solutions.NOW inked an expanded partnership with Microsoft to modernize front-office business processes with a Microsoft Copilot and ServiceNow AI agent collaboration. The much anticipated Now Assist integration with Microsoft Copilot for Microsoft 365 is generally available with the Xanadu update. NVIDIA and NOW are collaborating to develop out-of-the-box use cases for AI agents on the Now platform using NVIDIA NIM Agent Blueprints. Apart from these, ServiceNow has inked several other partnership deals with the likes of Five9, Visa, Snowflake, Zoom, Siemens, Rimini Street, IBM, Genesys, Fujitsu, Equinix, Boomi and Infosys, which are expected to boost its growing market share.\nServiceNow Raises Subscription Revenue Guidance\nFor 2024, NOW expects subscription revenues of $10.655-$10.66 billion (up from previous guidance of $10.575-$10.585 billion), which suggests a rise of 23% from the 2023 actuals on a GAAP basis and 22.5% on a non-GAAP basis.For the fourth quarter of 2024, subscription revenues are projected between $2.875 billion and $2.88 billion, suggesting a year-over-year improvement of 21.5-22% on a GAAP basis. At constant currency, subscription revenues are expected to grow 20.5%.\nNOW’s Earnings Estimate Trends Are Steady\nThe Zacks Consensus Estimate for 2024 earnings is pegged at $13.87 per share, unchanged over the past 30 days, indicating a 28.66% year-over-year increase.NOW’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.46%. \n\nServiceNow, Inc. Price and Consensus\n  \nServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. Quote\n\nFind the latest EPS estimates and surprises on Zacks Earnings Calendar.The consensus mark for 2024 revenues is pegged at $10.97 billion, suggesting growth of 22.33% over the 2023 reported figure.The Zacks Consensus Estimate for 2025 earnings is pegged at $16.40 per share, unchanged over the past 30 days, indicating an 18.27% year-over-year increase.The consensus mark for 2025 revenues is pegged at $13.18 billion, suggesting growth of 20.13% over the 2024 estimated figure.\nStrong Liquidity Makes NOW Stock Attractive\nA strong liquidity position, with a cash balance of $5.295 billion as of Sept. 30, 2024, is noteworthy. ServiceNow generated a free cash flow of $471 million in the third quarter of 2024.NOW expects the free cash flow margin to be 31% for 2024.The strong liquidity position allows ServiceNow to pursue various growth opportunities, including acquisitions and share repurchases.In the third quarter of 2024, NOW repurchased roughly 272,000 shares for $225 million and had $562 million available for future share repurchases under the existing program.\nNOW’s Strong Prospects Justify Premium Valuation\nServiceNow stock is trading at a premium, as suggested by the Value Score of F.In terms of the forward 12-month Price/Sales, NOW is trading at 18.08X, higher than its median of 13.82X and the sector’s 6.28X.\nPrice/Sales Ratio (F12M)\nImage Source: Zacks Investment Research\nServiceNow’s robust GenAI portfolio and strong partner base are expected to drive its clientele, boosting subscription revenues. Hence, we believe the premium valuation is justified.ServiceNow currently has a Zacks Rank #2 (Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nAmazon.com, Inc. (AMZN) : Free Stock Analysis Report\nMicrosoft Corporation (MSFT) : Free Stock Analysis Report\nNVIDIA Corporation (NVDA) : Free Stock Analysis Report\nServiceNow, Inc. (NOW) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491360339"}