NOW's AI Offerings Boost Enterprise Footprint: What Lies Ahead?

ServiceNow NOW 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, Salesforce CRM and Oracle ORCL. 

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

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

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.

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This article originally published on Zacks Investment Research (zacks.com).

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