ServiceNow and Fiserv Expand Strategic Commitment to Accelerate AI Transformation in Financial Services
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy NOW?
ServiceNow (NOW) and Fiserv, Inc. (FISV) announced an expanded strategic commitment to accelerate AI-driven transformation of financial services. As part of the agreement, Fiserv will scale its use of ServiceNow Now Assist for Financial Services Operations and IT Service Management to improve operations across IT and customer service environments supporting Fiserv clients. "Financial institutions operate in environments with zero tolerance for disruption," said Paul Fipps, president of Global Customer Operations at ServiceNow. "Through our expanded relationship with Fiserv, we're making AI an operational advantage - embedded directly into the workflows that keep financial institutions running. With ServiceNow Now Assist, teams can manage complexity with greater resilience and confidence. Together, we're driving smarter, more proactive operations at scale."
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 109.770
Low
172.00
Averages
222.81
High
263.00
Current: 109.770
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Strategic Shift: The company is pivoting to an AI-first model, with its generative AI solution, Now Assist, achieving an annual contract value (ACV) of $600 million, projected to exceed $1 billion by the end of 2026, highlighting its growth potential in the AI market.
- Optimistic Outlook: ServiceNow forecasts Q1 subscription revenue growth of 21.5%, reaching between $3.650 billion and $3.655 billion, while current remaining performance obligations (cRPO) are expected to increase by 22.5%, indicating strong future revenue growth potential.
- Attractive Valuation: Despite the stock decline, ServiceNow trades at a forward price-to-sales multiple of 7.5 and a forward P/E ratio just above 28, which is considered attractive given its growth prospects, suggesting investors may consider buying at this dip.
See More
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- Software Sector Selloff: The S&P 500 software and services index has plummeted 13% in the past week, erasing over $800 billion in market capitalization, reflecting investor anxiety over the potential disruption caused by artificial intelligence, leading to a sharp decline in confidence in software stocks.
- Technical Signals and Bottom Expectations: Despite the significant downturn, some portfolio managers have begun modest buying of beaten-down stocks, suggesting that these shares may be nearing a short-term bottom, indicating market expectations for a potential rebound in the sector.
- Market Rotation and Value Seeking: As investors shift from tech stocks to value and quality stocks, the selloff in software names is seen as a reaction to more attractive investment opportunities, particularly in sectors like consumer staples, energy, and industrials that have been less favored recently.
- AI Impact and Future Uncertainty: Concerns over emerging AI tools have exacerbated market volatility, and while some analysts believe software stocks may be starting to present value, there is still a need to wait for additional catalysts to confirm the sustainability of any rebound.
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- Cloud Fund Decline: The WisdomTree Cloud Computing Fund has dropped approximately 20% in 2026, including a 6.5% decline this week, reflecting investor concerns over potential disruptions from AI technology, which has negatively impacted confidence across the sector.
- Box's Poor Performance: Box's stock has fallen 17% in 2026, experiencing its steepest monthly drop since 2023, and while CEO Aaron Levie describes this as the most exciting moment in the company's 20-year history, the market remains pessimistic about its future prospects.
- Increased Competition: The launch of new legal and marketing features for Anthropic's Claude Cowork productivity tool has made investors more cautious, fearing that AI could replace traditional software solutions, leading to significant stock declines for companies like HubSpot and Figma, which fell 39% and 40%, respectively.
- Divergent Market Reactions: Despite escalating fears of AI-related disruption, analysts highlight that many software companies maintain solid fundamentals, with HubSpot showing strong business performance and Monday.com being viewed as a profitable grower benefiting from digital and AI collaboration trends, indicating a divergence in market reactions.
See More
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- Market Performance Decline: Box's stock has dropped 17% in 2026, reflecting investor concerns about the future of software companies amid the rise of AI, leading to significant market value erosion and impacting company confidence.
- Intensifying Industry Competition: With the launch of new tools like Anthropic's Claude Cowork, software companies face direct competition from AI technologies, and despite efforts from Salesforce and ServiceNow to maintain market share, their valuations have fallen by about 25%, indicating weakened market confidence in traditional software.
- Shift in Investor Sentiment: While some analysts believe companies like HubSpot remain robust, the overall market sentiment towards the software sector has turned pessimistic, resulting in significant stock price declines for many firms, reflecting fears of AI replacing traditional software solutions.
- Pressure to Adapt Technologically: Box CEO Levie emphasizes that software companies must rapidly embrace AI to remain competitive, and this pressure is driving innovation in products and services to meet growing customer demands, potentially reshaping the industry landscape in the long term.
See More
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- Market Pullback Analysis: Tyler Radke, co-head of U.S. software equity research at Citigroup, noted that the current broad sell-off in software stocks appears 'overdone,' creating opportunities for selective investors, particularly in the context of the AI trade.
- Stock Performance Volatility: For instance, Palantir's stock surged 7% after reporting a fourth-quarter earnings beat but subsequently fell 12% on Wednesday, illustrating the intense market volatility and investor panic.
- Selective Investment Strategy: Radke emphasized that investors should focus on companies likely to remain relevant in the future AI trade, particularly those exposed to hyperscale data volumes, recommending stocks like Microsoft, MongoDB, and Snowflake.
- Divergent Stock Performances: On Wednesday, Microsoft and ServiceNow each gained 1%, while MongoDB and Snowflake dropped 3% and 5%, respectively, reflecting varying market expectations and confidence in different software companies.
See More
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AI's Impact on Investor Sentiment: Investors are increasingly concerned that the rise of artificial intelligence, despite its current early stage, could negatively affect the stock market rally.
Vulnerability of Sectors: There is a growing perception that various tech sectors and others may be at risk due to the significant funding requirements associated with AI development.
Shift in Investment Focus: As a result of these concerns, investors are beginning to explore alternative investment opportunities outside of AI-related sectors.
Market Uncertainty: The uncertainty surrounding AI's future implications is causing a shift in market dynamics, prompting caution among investors.
See More
