ServiceNow, Inc. (NOW): A Bull Case Theory

We came across a bullish thesis on ServiceNow, Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on NOW. ServiceNow, Inc.'s share was trading at $822.07 as of December 1st. NOW’s trailing and forward P/E were 98.24 and 39.53 respectively according to Yahoo Finance.

ServiceNow (NOW) has established itself as a leading AI platform for enterprise transformation, demonstrating robust execution in Q2 2025 with 22.5% revenue growth driven by strong adoption of workflow AI and the Now Assist and Pro Plus offerings. The company closed 21 large deals with five or more Now Assist products, while AI Pro Plus usage across ITSM, CSM, and HR rose over 50% sequentially, appearing in 18 of the top 20 deals.

Workflow Data Fabric featured in 17 of these, reflecting deep enterprise integration. Its AI Control Tower for agent orchestration exceeded full-year net new ACV targets within just 60 days, underscoring strong early traction. Major clients such as Adobe, Aptiv, Visa, EY, ExxonMobil, and Standard Chartered are leveraging ServiceNow’s AI capabilities to compress cycle times and enhance service delivery. The Zurich platform and AI Experience, introduced in October 2025, unify multi-agent development, enterprise-grade security, and autonomous workflow management in a single interface.

New capabilities—Voice and Web Agents for task automation, Data Explorer for natural-language insights, and AI Lens for intelligent data capture—broaden the platform’s reach. ServiceNow’s deep workflow roots, product breadth, and strategic partnerships with Microsoft and NVIDIA reinforce its competitive flywheel and ecosystem strength.

As AI becomes embedded across customer workflows, the focus now shifts to sustaining attractive unit economics from AI add-ons and driving expansion within its existing enterprise base. With growth in the 19–24% range, ServiceNow remains well-positioned as enterprises transition toward an “agentic operating system.”

Previously we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted its dominance in enterprise workflow automation and strong financial discipline. The company’s stock price has appreciated approximately by 4.63% since our coverage. This is because the AI-led growth thesis played out. The thesis still stands as ServiceNow expands AI-driven workflow integration. Sergey shares an identical view but emphasizes accelerating AI monetization and product traction.

ServiceNow, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 106 hedge fund portfolios held NOW at the end of the second quarter which was 106 in the previous quarter. While we acknowledge the potential of 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.

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Disclosure: None.