ServiceNow builds cloud software that helps large organizations manage work across IT, customer service, human resources, and security. Its applications handle tasks such as resolving support tickets, onboarding employees, and responding to customer requests. Businesses configure forms, approval steps, and automation through visual tools on a common platform, connecting existing systems and using AI to assist workers or carry out tasks. The company sells subscriptions to its applications and platform, with professional services helping customers implement and use the software. Founded in 2004, ServiceNow is headquartered in Santa Clara, California.
Company Size
10,001+
Company Stage
IPO
Headquarters
Santa Clara, California
Founded
2004
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More than 25% of S&P 500 stocks are down 40% or more from their highs, even with the index near record levels, as of October 8, 2026. The Motley Fool sees that as a chance to hunt for bargains in tech. It names four picks. Netflix trades at about 18.5 times 2027 analyst earnings estimates, and advertising should drive its growth. Oracle has a $664 billion backlog in cloud infrastructure, but carries heavy debt and burns cash. ServiceNow, hit by the 2026 software sell-off, trades at 7.5 times forward sales as it pushes into agentic AI. AppLovin trades at 13 times 2027 earnings estimates. Its revenue rose 53% last quarter to $1.9 billion.
Chevron, ServiceNow and Nasdaq finance chiefs say AI projects must prove their worth before getting funded. They spoke on a panel at the Fortune Most Powerful Women Summit in Santa Barbara on Tuesday. Chevron's chief financial officer, Eimear Bonner, said AI "has got to compete for capital" and cannot be "a science experiment." She wants a clear path to value and results that reach the bottom line. ServiceNow's Gina Mastantuno said CFOs must also weigh the cost of falling behind rivals. The company expects $500 million in savings this year, largely from using its own products. Nasdaq's Sarah Youngwood sorts investments by time horizon and tracks AI metrics such as coding speed, client retention and token costs.
Palantir Technologies trades at 139 times trailing free cash flow compared to ServiceNow's 31 times, but investors are paying the premium for faster AI-driven growth. Palantir's June-quarter revenue surged 93% to $1.94 billion, with GAAP operating income reaching $912 million, about 47% of revenue. ServiceNow's second-quarter subscription revenue rose 24.5% to $3.88 billion. Current remaining performance obligations increased 21% to $13.2 billion. Operating cash flow reached $587 million, with free cash flow at $473 million after property purchases. Institutional ownership data shows ServiceNow's holder count increased to 115 from 108 in Q1, whilst Palantir's fell to 86 from 96. Palantir had 60.18 million shares short on 15 September, approximately 2.8% of float. Both companies offer different enterprise automation approaches, with the valuation gap reflecting Palantir's exceptional growth trajectory.
ServiceNow and UiPath both offer AI-powered automation platforms, but differ in scale and growth. ServiceNow reported revenue of nearly $13.3 billion for fiscal 2025, up 20.9%, with net income of $1.75 billion. UiPath posted revenue of $1.6 billion for fiscal 2026, up 12.7%, achieving its first full-year GAAP profitability with net income of $282.3 million. ServiceNow's AI products surpassed $1 billion in annual contract value in Q2. However, its $7.75 billion Armis acquisition raised total debt to $7.5 billion by June 2026. UiPath carries no debt and maintains a current ratio of 2.5x, but faces slower growth with flat customer count year-over-year. ServiceNow trades at 33.9x forward P/E versus UiPath's 17.1x, reflecting different growth trajectories and market positioning.
ServiceNow shares rose 2.5% to $137.40 in premarket trading as the company co-hosted the Fortune AIQ Summit at the New York Stock Exchange, an event focused on deploying and scaling artificial intelligence within businesses. The gains came alongside an 18% rise in partner Accenture's shares following its latest financial results. Several analysts recently increased ServiceNow price targets, with Deutsche Bank raising its target to $155 from $135 and Cantor Fitzgerald lifting its target to $174. ServiceNow previously reported second-quarter subscription revenue of $3.877 billion, up 24.5% year-on-year. The company raised its full-year 2026 subscription revenue guidance to between $15.76 billion and $15.78 billion. The broader US equity market also traded higher, with the S&P 500 gaining 0.25% and the Nasdaq advancing 0.5%.