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

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':"";if(a){var r=n.promos.showYahooLogo?"":"yns-no-logo";a=a.replace("{notifOnboardBtnLabel}",n.promos.notifOnboardBtnLabel).replace("{notifOnboardMsg}",n.promos.notifOnboardMsg).replace("{subscriptionTopic}",n.promos.subscriptionTopic).replace("{noLogoClass}",r).replace("{promoLogo}",n.promos.promoLogo)}var s=t.newCount>n.panel.maxCount?t.newCount:"",c=n.panel.notificationCenterPath,l=c?"":R,u=n.panel.headerMsg?"":" "+R,d=c?H:"",p=void 0;t.count?p=t.markup:p='{emptyPanelMsg}'.replace("{emptyPanelMsg}",n.panel.emptyPanelMsg);return e=e.replace("{notifMarkup}",p).replace("{promoMarkup}",a).replace("{hideClass}",l).replace("{notifCenterLink}",c).replace("{paddingClass}",d).replace("{headerMsg}",n.panel.headerMsg).replace("{hideHeaderClass}",u).replace(/{notificationCenterNavMsg}/g,n.panel.notificationCenterNavMsg).replace(/{newCount}/g,s)}},{key:"render",value:function(e,t){var n=this;if(n._panelNode){var o=void 0,i=n._panelNode,a=void 0,r=void 0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(P))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),j=function(){function e(t,n,o){E(this,e);var i=this;i._store=n,i._view=o,i._config=t;var a=i._config.panel;i._panelParentNode=document.querySelector(a.parentSelector),i._badgeNode=i._config.badge.selector&&document.querySelector(i._config.badge.selector),i._indicatorNode=a.indicatorSelector&&document.querySelector(a.indicatorSelector)}return k(e,[{key:"createPanelParentNode",value:function(){this._view.createPanelParentNode(this._panelParentNode),this._notifPanelNode=document.getElementById(P)}},{key:"refreshPanelNode",value:function(e,t){var n=this;x(n._notifPanelNode,D),n._store.fetchNotifications(e,(function(e,o){var i=window.wafer&&window.wafer.base;i&&i.destroy(n._notifPanelNode),e?n._notifPanelNode.innerHTML||(n._view.render("error_panel"),x(n._notifPanelNode,D)):(n._view.render("expanded_panel"),n._view.updateBadgeNode(n._badgeNode),n._showBadge(),n._showIndicator(),n._view.addStyles(o.css)),N(n._notifPanelNode,D),i&&i.sync(n._notifPanelNode.parentNode),t&&t(e,o)}))}},{key:"resetBadge",value:function(){var e=this;e._store.resetNewCount(),e._view.updateBadgeNode(e._badgeNode),x(e._badgeNode,e._config.badge.hideClass)}},{key:"_showIndicator",value:function(){this._indicatorNode&&(this._store.getNotifications().newCount?x(this._indicatorNode,this._config.panel.indicatorClass):N(this._indicatorNode,this._config.panel.indicatorClass))}},{key:"_showBadge",value:function(){var e=this;e._store.getNotifications().newCount?N(e._badgeNode,e._config.badge.hideClass):x(e._badgeNode,e._config.badge.hideClass)}}]),e}(),Y={promos:{eligibleBodyClass:"display-push-promos",enableNotifOnboard:!0,bypassEligibleClassCheck:!1,notifOnboardBtnLabel:"Notify Me",notifOnboardMsg:"Get alerts for breaking news and top stories",promoLogo:"https://s.yimg.com/cv/apiv2/ae/news/circle_bell.png",showYahooLogo:!0,subscriptionTopic:"gondor_homerun_news"},badge:{hideClass:"",maxCount:5,selector:""},panel:{emptyPanelMsg:"You have no new 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n=e.getConfig();"smartphone"===n.device&&("finance"===n.property&&"crunch"===n.ytheme&&e.addElementListener(t.searchInput,"click",(function(){var n,o;n="search_input_focus_click",null!==(o=re())&&(oe[n]||(oe[n]=o)),e.addElementListener(t.searchForm,"click",(function(){if(t.ybar){if(t.ybar.classList.contains("ybar-searchbox-assist-fullscreen"))return;t.ybar.classList.add("ybar-searchbox-assist-fullscreen"),t.ybar.classList.add("ybar-searchbox-assist-fadein")}if(!document.documentElement.classList.contains("ybar-overlay")){document.documentElement.classList.toggle("ybar-overlay"),document.body.classList.add("ybar-overlay-noscroll");te("ybar","websrch","",{elm:"expand",subsec:"searchbox",itc:"1"})}}))})),e.addElementListener(t.searchBoxPlaceholder,"click",(function(){zt(e,t)})),e.addElementListener(t.searchBoxPlaceholder,"keydown",(function(n){var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Ricardo PillaiTue, September 30, 2025 at 4:42 PM GMT+2 3 min readWe 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 $933.37 as of September 24th. NOW’s trailing and forward P/E were 117.41 and 46.30 respectively according to Yahoo Finance.VNET Group (VNET) Gets 14.88% Boost From 40MW Capacity OrderCopyright: ralwel / 123RF Stock PhotoServiceNow (NOW) continues to demonstrate strong momentum as it balances high growth with margin pressures tied to AI and data center investments. The company delivered +22.4% YoY revenue growth in Q2, with RPO up +28.5% and cRPO up +24.4%, both outpacing headline growth. Subscription revenue, which accounts for 96.8% of sales, accelerated to +22.5% YoY, highlighting the durability of its business model. While gross margins slipped from 82.6% to 81.0%, operating margin expanded to 29.7% and free cash flow margin to 16.6%, demonstrating efficiency gains and disciplined cost management.ServiceNow’s valuation at a forward EV/Sales multiple of 13.3 and P/E of 51.1 remains elevated versus peers, yet supported by sustained 20%+ revenue growth and a renewal rate of 98%. The company has built a wide moat through high switching costs, deep integrations across IT, HR, and customer workflows, strong brand equity, and expanding economies of scale. Customer stickiness is reinforced by a growing base of large clients—528 paying more than $5 million ACV and over 30% YoY growth in customers above $20 million ACV.Notable wins include ExxonMobil, Standard Chartered, Merck, Starbucks, NVIDIA, and multiple U.S. public sector agencies, all leaning on ServiceNow’s AI Control Tower and agentic automation fabric. Recognition as a Leader in Gartner’s 2025 Magic Quadrants across ITSM, low-code, and AI-enabled applications, along with Forrester and IDC leadership designations, further solidifies its position. With strong cash reserves of $6.1B against $2.3B in debt and controlled dilution, ServiceNow enters the next phase of growth well-capitalized, making current challenges manageable and long-term prospects compelling.Previously we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2024, which highlighted its leadership in workflow automation, deep integration, and strong growth supported by AI-driven innovation. The stock has appreciated ~18.8% since our coverage as the thesis played out. The thesis still stands. Sergey shares a similar view but emphasizes balancing growth with AI and data center margin pressures.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, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HGTY and that has 10,000% upside potential, check out our report about this cheapest AI stock.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,711.20 +22.74 (+0.34%)Dow 3046,441.10 +43.21 (+0.09%)Nasdaq22,755.16 +95.15 (+0.42%)Russell 20002,442.35 +5.87 (+0.24%)VIX16.29 +0.01 (+0.06%)Gold3,885.60 -11.90 (-0.31%)PortfolioSign in to access your portfolioSign inTop gainersFLNC Fluence Energy, Inc. 13.45 +2.65 (+24.54%)MENS Jyong Biotech Ltd. 47.86 +8.48 (+21.53%)QS QuantumScape Corporation 14.59 +2.27 (+18.43%)AES The AES Corporation 15.37 +2.21 (+16.79%)ASTS AST SpaceMobile, Inc. 56.94 +7.86 (+16.01%)Top losersWIX Wix.com Ltd. 153.79 -23.84 (-13.42%)WOLF Wolfspeed, Inc. 24.83 -3.77 (-13.18%)RDDT Reddit, Inc. 202.60 -27.39 (-11.91%)SLNO Soleno Therapeutics, Inc. 60.12 -7.48 (-11.07%)CTVA Corteva, Inc. 61.47 -6.16 (-9.11%)Most activePLUG Plug Power Inc. 2.9300 +0.6000 (+25.75%)SNAP Snap Inc. 7.71 0.00 (0.00%)OPEN Opendoor Technologies Inc. 8.06 +0.09 (+1.13%)NVDA NVIDIA Corporation 187.24 +0.67 (+0.36%)INTC Intel Corporation 35.94 +2.39 (+7.12%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersSMCI Super Micro Computer, Inc. 52.39 +4.45 (+9.28%)INTC Intel Corporation 35.94 +2.39 (+7.12%)FRMI Fermi Inc. 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