ServiceNow, Inc. (NOW) Launches AI Control Tower, Eyes $15B in Subscription Revenue

We recently compiled a list of the 10 Best Strong Buy Tech Stocks to Buy. ServiceNow, Inc. stands sixth on our list among the best strong tech stocks.

ServiceNow, Inc. (NYSE:NOW) is strengthening its position as a leader in AI-driven enterprise workflow automation. The company’s cloud-based platform helps businesses streamline operations, and its recent focus on AI and agentic workforce management is driving strong results.

In July 2025, ServiceNow, Inc. (NYSE:NOW) reported impressive Q2 results, with subscription revenue growing 22.5% year-over-year to $3.11 billion and remaining performance obligations increasing 29% to $23.9 billion, highlighting strong demand and a stable recurring revenue base. One of the key innovations fueling this growth is its agentic workforce solution, which integrates AI agents with human employees to automate complex workflows. This has reduced service desk workloads by 40% and improved case resolution times by 50%.

The company also introduced new tools like AI Control Tower and no-code Agent Studio, enabling businesses to create and manage AI workflows with minimal technical expertise. These innovations have driven accelerating annual contract value (ACV) growth.

Strategic partnerships, such as with CapZone to modernize U.S. naval shipbuilding using ServiceNow’s AI platform, further expand its reach. Management is confident about hitting a $1 billion ACV target for its Now Assist AI tool by 2026 and expects subscription revenue to surpass $15 billion in that period.

While Q3 2025 may see minor pressure from a large renewal cycle, growth is expected to resume strongly in Q4. Analysts maintain a “Strong Buy” rating on ServiceNow, Inc. (NYSE:NOW), viewing the stock’s recent underperformance as temporary amid strong fundamentals and growing enterprise demand for AI-powered automation solutions.

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