ServiceNow's Product Expansion Gains Pace: More Growth Ahead?

ServiceNow’s NOW product expansion is accelerating and turning into measurable growth, strengthening the case for continued upside. Now Assist, Workflow Data Fabric, Raptor and CPQ have emerged as major fourth-quarter growth drivers, showing that innovation is directly supporting revenues. Management pointed out that these offerings materially outperformed expectations and were widely adopted in large enterprise deals, reinforcing their position as core components of the workflow platform.

Growing attach rates and multi-product adoption are strengthening this expansion. Workflow Data Fabric was included in the majority of large deals, and Raptor achieved triple-digit growth in new contract value, highlighting stronger integration into mission-critical operations. AI monetization is adding further momentum, with Now Assist surpassing $600 million in annual contract value and seeing faster multi-module deployments as customers scale AI to boost productivity and cost efficiency.

Importantly, this product-led momentum is translating into stronger enterprise deal activity. Major contract wins and a rising base of high-value customers show that expanding platform adoption is lifting ServiceNow’s expansion strategy. As workflow, AI and adjacent products reinforce each other, customer integration deepens and the addressable opportunity widens. This momentum highlights a move toward platform-led growth that supports durable revenue expansion. The Zacks Consensus Estimate forecasts revenue growth of over 20% in 2026, supporting a favorable outlook.

How Rivals Stack Up to NOW’s Product Expansion Push

ServiceNow faces its strongest product expansion competition from Salesforce CRM and Atlassian TEAM.

Salesforce is emerging as a strong counter to NOW’s expansion strategy by extending Agentforce into IT service, sales and workflow automation. Built on a unified data platform with embedded AI, Salesforce is challenging traditional workflow tools while supporting cross-cloud growth. While NOW focuses on deep IT workflow specialization, Salesforce prioritizes AI-driven execution across enterprise applications. As adoption and upsell activity increase, the competition reflects a broader platform battle between focused workflow leadership and enterprise-wide AI orchestration.

Atlassian is accelerating its product expansion with an AI-powered “system of work” that brings together Jira, Confluence, Loom and Rovo under the Teamwork Collection, while extending service capabilities into HR and finance. Competing with ServiceNow, Atlassian highlights strong ROI through its Teamwork Graph architecture, deep workflow integration and flexible AI interoperability. Rapid AI monetization, cross-team adoption and enterprise standardization are helping Atlassian replace legacy tools while maintaining competitive pricing and faster innovation.

NOW’s Share Price Performance, Valuation & Estimates

ServiceNow shares have declined 45.8% in a year, underperforming the broader Zacks Computer and Technology sector’s return of 23.7%.

NOW’s One-Year Price Performance

ServiceNow stock is overvalued, with a forward 12-month price/sales of 6.84X compared with the broader sector’s 6.54X. NOW has a Value Score of D.

NOW’s Valuation

The Zacks Consensus Estimate for ServiceNow’s 2026 earnings is pegged at $4.12 per share, up 2.2% over the past 30 days. The figure indicates a 17.38% increase year over year.

ServiceNow currently carries a Zacks Rank #3 (Hold). 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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