Robust Earnings Results Lifted ServiceNow (NOW) in Q2

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for digital businesses. The one-month return of ServiceNow, Inc. (NYSE:NOW) was 10.07%, and its shares gained 9.21% of their value over the last 52 weeks. On September 08, 2025, ServiceNow, Inc. (NYSE:NOW) stock closed at $939.33 per share, with a market capitalization of $194.929 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its second quarter 2025 investor letter:

"ServiceNow, Inc. (NYSE:NOW), a leader in enterprise workflow automation, outperformed during the quarter following strong earnings results that exceeded Wall Street expectations. Notably, growth in the company’s Federal Government segment was particularly strong, with Net New Annual Contract Value (NNAC) up 30% year-over-year—well above expectations, which had been modest for this area. Additionally, ServiceNow’s 2025 analyst day highlighted significant momentum in AI-related revenue."

ServiceNow, Inc. (NYSE:NOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held ServiceNow, Inc. (NYSE:NOW) at the end of the second quarter, which was 106 in the previous quarter. While we acknowledge the potential of ServiceNow, Inc. (NYSE:NOW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered ServiceNow, Inc. (NYSE:NOW) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.