How AI Partnerships and a Stock Split at ServiceNow (NOW) Have Changed Its Investment Story

ServiceNow recently reported strong third-quarter earnings, raising its full-year guidance after surpassing revenue forecasts and highlighting robust demand for AI-driven workflow automation and new partnerships with FedEx Dataworks and NVIDIA. Amid this momentum, the company also announced a five-for-one stock split and detailed continued adoption of its AI-powered offerings across multiple sectors, underscoring its commitment to accelerating enterprise digital transformation. We'll examine how ServiceNow's expanded AI collaborations with major partners could influence long-term revenue growth assumptions in its investment narrative.

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ServiceNow Investment Narrative Recap

To be a shareholder in ServiceNow, you need to believe in the long-term potential of AI-driven workflow automation as a core enabler for digital transformation across industries. The latest quarter's strong results and raised guidance strengthen the case for AI as the company’s most important near-term catalyst, while execution risks, especially with expansion into CRM workflows and public sector reliance, remain. Overall, recent news reinforces existing themes but does not materially shift the balance of catalysts and risks.

Of particular relevance is the expanded partnership with FedEx Dataworks, announced alongside earnings. This collaboration highlights ServiceNow’s growing ecosystem of AI-enabled workflow integrations that underpin current demand momentum. The focus on bringing agentic AI to supply chain management aligns closely with the company’s catalyst of expanding its addressable market through high-value sector partnerships and next-gen platform enhancements.

While this progress is encouraging, it's important to remember that, despite these advances, investors should be aware of...

Read the full narrative on ServiceNow (it's free!)

ServiceNow's narrative projects $20.3 billion in revenue and $3.3 billion in earnings by 2028. This assumes an 18.9% annual revenue growth rate and a $1.6 billion increase in earnings from the current $1.7 billion level.

Uncover how ServiceNow's forecasts yield a $1157 fair value, a 26% upside to its current price.

Exploring Other PerspectivesNOW Community Fair Values as at Nov 2025

The lowest analyst estimates before this news saw ServiceNow reaching US$2.2 billion in earnings and US$17.8 billion in revenue by 2028, but warned that new AI pricing models could cause slower, less predictable growth near term. Some analysts take a much more cautious approach than consensus, so it’s always worth seeing how sharply opinions can differ, and what might prompt such a change.

Story Continues

Explore 16 other fair value estimates on ServiceNow - why the stock might be worth as much as 35% more than the current price!

Build Your Own ServiceNow Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your ServiceNow research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free ServiceNow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ServiceNow's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NOW.

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