ServiceNow CFO emphasizes the importance of AI in delivering tangible results.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 02 2025
0mins
Should l Buy NOW?
Source: SeekingAlpha
AI Impact on Enterprises: ServiceNow's CFO, Gina Mastantuono, emphasizes that AI is driving significant efficiency and automation improvements for enterprises, with the company generating $355M from internal AI initiatives and aiming for $1B in AI-related revenue by 2026.
Survey Insights: A survey of IT leaders reveals that 76% are expanding AI use cases, primarily to increase operational efficiency, with 79% reporting efficiency gains from their AI initiatives.
Enterprise vs. Consumer AI: Mastantuono highlights the differences between enterprise and consumer AI, noting that enterprise AI requires higher security and governance, and ServiceNow's unique combination of AI, data, and workflow positions it well in the market.
Market Performance: Despite strong revenue growth and operating margins, ServiceNow's share value has remained static compared to other tech sectors, as investor interest has shifted towards hardware providers rather than software companies utilizing AI.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 113.190
Low
172.00
Averages
222.81
High
263.00
Current: 113.190
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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- Strong Cash Flow Performance: ServiceNow achieved a non-GAAP free cash flow margin of 57%, indicating its ability to effectively convert revenue growth into cash flow, enhancing financial stability.
- Optimistic Future Outlook: Management guided for first-quarter subscription revenue between $3.65 billion and $3.655 billion, implying approximately 21.5% year-over-year growth, demonstrating sustained strong growth potential.
See More
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- Supply Chain Risk Declaration: The Trump administration's designation of Anthropic as a supply chain risk has prompted 10 startups working with the Department of Defense to cease using its Claude model and seek alternatives, potentially impacting about 80% of Anthropic's enterprise revenue.
- Defense Contract Implications: Major defense contractors like Lockheed Martin are expected to remove Anthropic's technology from their supply chains, which could lead to a decline in Anthropic's market share within the defense sector and adversely affect future revenue growth.
- Legal Response Possibility: Anthropic has indicated it may appeal the supply chain risk designation through legal channels, although no formal action has been taken yet; if the designation becomes official, it would restrict the use of Claude in defense contracts, potentially affecting its business with other clients.
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- Innovative Collaboration: ServiceNow is partnering with NTT DOCOMO and Starhub to develop the industry's first inter-carrier operational model, aimed at accelerating the identification and resolution of roaming issues, thereby enhancing connectivity reliability for travelers worldwide.
- Commercial Launch Plans: The collaboration is expected to launch in the second half of the year, focusing on improving service quality for international travelers, marking a significant step towards a standardized operational model leveraging the ServiceNow AI platform for automation.
- Technological Advancements: By automating remote maintenance tasks and coordinating roaming fault resolutions in real-time, the partnership aims to deliver better visibility and faster recovery for carriers and their customers, significantly enhancing customer experience and reducing delays in issue reporting.
- Market Performance Analysis: Although ServiceNow shares rose 1.38% in premarket trading on Wednesday, they remain below both the 20-day and 100-day simple moving averages, indicating short-term challenges, with the upcoming earnings report being a key catalyst for future performance.
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- New CEO Appointment: Disney has announced that Josh D’Amaro, the current chairman of Disney Experiences, will officially succeed Bob Iger as CEO on March 18, which is expected to drive strategic execution during the company's transformation phase.
- Executive Departure: The company also revealed that Kristina Schake, senior executive vice president and chief communications officer, will depart after March 18, a move that may impact internal communications and brand image management.
- Toast Earnings Beat: Toast reported fourth-quarter earnings of 16 cents per share on February 12, exceeding the analyst consensus estimate of 13 cents, with quarterly sales of $1.633 billion also surpassing expectations of $1.620 billion, indicating strong market demand.
- ServiceNow's Strong Performance: ServiceNow reported approximately $3.57 billion in fourth-quarter revenue on January 28, beating the consensus estimate of $3.53 billion, with adjusted earnings of 92 cents per share, also above the analyst estimate of 88 cents, reflecting its ongoing growth potential.
See More
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- Market Decline: The S&P 500 index fell by 0.94%, reaching a 3.25-month low, reflecting investor concerns over escalating tensions in Iran, which may impact future investment decisions and market stability.
- Surge in Oil Prices: WTI crude oil prices rose over 4% to an 8.5-month high due to threats from Iran to close the Strait of Hormuz, intensifying fears of energy supply disruptions and potential inflationary pressures in the economy.
- Natural Gas Price Spike: European natural gas prices surged more than 22% to a three-year high after Qatar's Ras Laffan plant was targeted by an Iranian drone attack, posing significant risks to global liquefied natural gas supply and market stability.
- Economic Data Expectations: This week, the ADP employment change is expected to increase by 50,000, while the ISM services index is projected to slip slightly, with markets closely monitoring these indicators to assess economic health and potential implications for Federal Reserve monetary policy decisions.
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- Oil Price Impact: U.S. oil benchmark WTI settled at $74.56 per barrel on Tuesday, well below session highs near $78, illustrating how rising oil prices are exerting downward pressure on stocks and reflecting geopolitical risks to the economy.
- Tech Stock Rebound: Despite recent fears of AI disruption, Cramer's
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