ServiceNow Executive's Stock Purchase Signals Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy NOW?
Source: Fool
- Executive Stock Purchase: ServiceNow CEO Bill McDermott's plan to buy $3 million worth of shares on February 27 signals strong confidence in the company's future value, particularly after a significant stock price decline due to market fluctuations.
- AI Strategic Focus: McDermott emphasized that ServiceNow will prioritize the integration of generative AI, with the Now Assist AI suite expected to surpass $1 billion in annual contract value by the end of 2026, demonstrating the company's commitment to technological leadership in a rapidly evolving market.
- Strong Financial Performance: ServiceNow's subscription revenue grew by 19.5% in Q4, exceeding management's guidance, while remaining performance obligations increased by 22.5%, indicating robust future growth potential.
- Stock Buyback Plan: The board approved a $5 billion stock buyback plan, including a $2 billion accelerated repurchase, which will significantly boost earnings per share and further enhance investor confidence in the company's stock.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NOW?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 102.490
Low
172.00
Averages
222.81
High
263.00
Current: 102.490
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.
ServiceNow Reports 21% Subscription Revenue Growth in Q4 2025
- Significant Revenue Growth: ServiceNow reported a subscription revenue of $3.47 billion in Q4 2025, reflecting a 21% year-over-year increase, demonstrating strong performance in the enterprise workflow software sector despite a broader sell-off in software stocks.
- Future Performance Outlook: The company projects subscription revenue of approximately $15.5 billion for 2026, with around 20% growth on a constant currency basis, indicating robust market potential even in the rapidly evolving AI landscape.
- Buyback Plan Boosts Confidence: Management announced an additional $5 billion in stock buyback authorization and repurchased about $597 million in stock during Q4, reflecting confidence in the company's future while potentially providing support for shareholders.
- AI Strategic Positioning: ServiceNow emphasized the importance of AI in business reinvention in its latest earnings report, with the CEO stating that the company is executing a long-term platform strategy where AI agents and workflows create sustained competitive advantages.
See More
Moveworks Achieves FedRAMP Authorization for AI Platform
- Security Milestone: Moveworks has achieved FedRAMP Moderate Authorization, enabling its AI Assistant platform to be securely deployed across federal agencies and the public sector, enhancing employee efficiency and focus on mission outcomes.
- Innovation Driving Efficiency: The platform reduces manual work required to resolve routine IT, HR, and Finance requests by integrating search and action, significantly improving operational efficiency and helping government agencies manage technical debt and staffing constraints.
- Public Sector Focus: Moveworks GovCloud is built on AWS GovCloud (US) to meet specific public sector requirements, ensuring secure architecture and rigorous controls to support complex, security-sensitive environments.
- Future Development Plans: Moveworks intends to pursue higher-level FedRAMP certifications, including FedRAMP High and Impact Level 5 (IL5), to further support mission-critical objectives, demonstrating its long-term commitment to the public sector.
See More
Analyzing the Sell-off in Software Stocks: Terminal Value Insights
- Terminal Value Reassessment: Fears of AI disruption have led investors to rethink the terminal value of software companies, creating uncertainty around their long-term profitability, which has triggered a significant sell-off in the sector.
- Stable Earnings Expectations: While earnings expectations for software firms remain intact for the next year, declining confidence in their long-term valuations has resulted in substantial stock price declines for companies like Salesforce, Workday, and ServiceNow, reflecting market concerns about future earnings.
- Discounted Cash Flow Model: The discounted cash flow (DCF) model becomes essential for assessing long-term company value, where terminal value plays a crucial role; small changes in terminal value assumptions can lead to significant shifts in what investors are willing to pay for stocks today.
- Structural Risk Evaluation: Understanding the dynamics of terminal value helps investors determine whether the current sell-off is justified or if it creates selective opportunities, particularly in stocks that may be undervalued due to exaggerated long-term fears.
See More
Anthropic Launches New Tool to Support Software Industry
- Product Update: Anthropic's Tuesday event introduced updates to its Claude Cowork tool, enabling connections to platforms like Google Drive, Gmail, and Docusign, thereby enhancing office productivity and demonstrating its additive role to existing software providers.
- Market Reaction: The iShares Expanded Tech-Software Sector ETF (IGV) rose nearly 2% during Tuesday's session, recovering from a more than 4% drop on Monday, although the fund remains down 24% in 2026, reflecting the market's mixed sentiment towards AI's impact.
- Industry Analysis: Wells Fargo analyst Jason Haas highlighted that sector-specific data assets are crucial in building AI solutions, with companies like Fair Isaac, Moody's, and S&P Global likely to benefit due to their unique datasets, indicating AI as a tailwind for increased data usage.
- Collaboration Outlook: Analysts suggest that Anthropic's event indicates a willingness to partner with existing software companies rather than replace them, a collaboration model that may be underappreciated by investors, particularly in the information services sector, which could lead to more market opportunities ahead.
See More
Trump's State of the Union Boosts Market Sentiment
- Trump's Economic Declaration: In his State of the Union address, Trump claimed the U.S. economy is 'roaring like never before,' despite polls indicating the opposite sentiment among Americans, with the 107-minute speech marking a historic length that underscores his focus on economic issues, potentially influencing investor confidence.
- AI Tool Updates: AI startup Anthropic announced enhancements to its Claude Cowork tool, allowing integration with platforms like Google Drive, which, despite initial market fears, led to a recovery in software stocks and a 350-point rise in the Dow Jones Industrial Average, demonstrating market resilience.
- Lowe's Earnings Beat: Lowe's reported over 10% sales growth in Q4, surpassing Wall Street expectations, yet its weaker-than-expected full-year earnings outlook caused a 3% drop in premarket trading, reflecting cautious market sentiment regarding future growth.
- Netflix Financing Plan: Netflix lined up $59 billion in financing to support its $72 billion acquisition of Warner Bros. Discovery, marking one of the largest loans in history, while facing competition from Paramount's new offer, highlighting the fierce competition in the media merger landscape.
See More
ServiceNow Executive's Stock Purchase Signals Confidence
- Executive Stock Purchase: ServiceNow CEO Bill McDermott's plan to buy $3 million worth of shares on February 27 signals strong confidence in the company's future value, particularly after a significant stock price decline due to market fluctuations.
- AI Strategic Focus: McDermott emphasized that ServiceNow will prioritize the integration of generative AI, with the Now Assist AI suite expected to surpass $1 billion in annual contract value by the end of 2026, demonstrating the company's commitment to technological leadership in a rapidly evolving market.
- Strong Financial Performance: ServiceNow's subscription revenue grew by 19.5% in Q4, exceeding management's guidance, while remaining performance obligations increased by 22.5%, indicating robust future growth potential.
- Stock Buyback Plan: The board approved a $5 billion stock buyback plan, including a $2 billion accelerated repurchase, which will significantly boost earnings per share and further enhance investor confidence in the company's stock.
See More
ServiceNow Reports 21% Subscription Revenue Growth in Q4 2025
- Significant Revenue Growth: ServiceNow reported a subscription revenue of $3.47 billion in Q4 2025, reflecting a 21% year-over-year increase, demonstrating strong performance in the enterprise workflow software sector despite a broader sell-off in software stocks.
- Future Performance Outlook: The company projects subscription revenue of approximately $15.5 billion for 2026, with around 20% growth on a constant currency basis, indicating robust market potential even in the rapidly evolving AI landscape.
- Buyback Plan Boosts Confidence: Management announced an additional $5 billion in stock buyback authorization and repurchased about $597 million in stock during Q4, reflecting confidence in the company's future while potentially providing support for shareholders.
- AI Strategic Positioning: ServiceNow emphasized the importance of AI in business reinvention in its latest earnings report, with the CEO stating that the company is executing a long-term platform strategy where AI agents and workflows create sustained competitive advantages.
See More
Moveworks Achieves FedRAMP Authorization for AI Platform
- Security Milestone: Moveworks has achieved FedRAMP Moderate Authorization, enabling its AI Assistant platform to be securely deployed across federal agencies and the public sector, enhancing employee efficiency and focus on mission outcomes.
- Innovation Driving Efficiency: The platform reduces manual work required to resolve routine IT, HR, and Finance requests by integrating search and action, significantly improving operational efficiency and helping government agencies manage technical debt and staffing constraints.
- Public Sector Focus: Moveworks GovCloud is built on AWS GovCloud (US) to meet specific public sector requirements, ensuring secure architecture and rigorous controls to support complex, security-sensitive environments.
- Future Development Plans: Moveworks intends to pursue higher-level FedRAMP certifications, including FedRAMP High and Impact Level 5 (IL5), to further support mission-critical objectives, demonstrating its long-term commitment to the public sector.
See More
Analyzing the Sell-off in Software Stocks: Terminal Value Insights
- Terminal Value Reassessment: Fears of AI disruption have led investors to rethink the terminal value of software companies, creating uncertainty around their long-term profitability, which has triggered a significant sell-off in the sector.
- Stable Earnings Expectations: While earnings expectations for software firms remain intact for the next year, declining confidence in their long-term valuations has resulted in substantial stock price declines for companies like Salesforce, Workday, and ServiceNow, reflecting market concerns about future earnings.
- Discounted Cash Flow Model: The discounted cash flow (DCF) model becomes essential for assessing long-term company value, where terminal value plays a crucial role; small changes in terminal value assumptions can lead to significant shifts in what investors are willing to pay for stocks today.
- Structural Risk Evaluation: Understanding the dynamics of terminal value helps investors determine whether the current sell-off is justified or if it creates selective opportunities, particularly in stocks that may be undervalued due to exaggerated long-term fears.
See More
Anthropic Launches New Tool to Support Software Industry
- Product Update: Anthropic's Tuesday event introduced updates to its Claude Cowork tool, enabling connections to platforms like Google Drive, Gmail, and Docusign, thereby enhancing office productivity and demonstrating its additive role to existing software providers.
- Market Reaction: The iShares Expanded Tech-Software Sector ETF (IGV) rose nearly 2% during Tuesday's session, recovering from a more than 4% drop on Monday, although the fund remains down 24% in 2026, reflecting the market's mixed sentiment towards AI's impact.
- Industry Analysis: Wells Fargo analyst Jason Haas highlighted that sector-specific data assets are crucial in building AI solutions, with companies like Fair Isaac, Moody's, and S&P Global likely to benefit due to their unique datasets, indicating AI as a tailwind for increased data usage.
- Collaboration Outlook: Analysts suggest that Anthropic's event indicates a willingness to partner with existing software companies rather than replace them, a collaboration model that may be underappreciated by investors, particularly in the information services sector, which could lead to more market opportunities ahead.
See More
Trump's State of the Union Boosts Market Sentiment
- Trump's Economic Declaration: In his State of the Union address, Trump claimed the U.S. economy is 'roaring like never before,' despite polls indicating the opposite sentiment among Americans, with the 107-minute speech marking a historic length that underscores his focus on economic issues, potentially influencing investor confidence.
- AI Tool Updates: AI startup Anthropic announced enhancements to its Claude Cowork tool, allowing integration with platforms like Google Drive, which, despite initial market fears, led to a recovery in software stocks and a 350-point rise in the Dow Jones Industrial Average, demonstrating market resilience.
- Lowe's Earnings Beat: Lowe's reported over 10% sales growth in Q4, surpassing Wall Street expectations, yet its weaker-than-expected full-year earnings outlook caused a 3% drop in premarket trading, reflecting cautious market sentiment regarding future growth.
- Netflix Financing Plan: Netflix lined up $59 billion in financing to support its $72 billion acquisition of Warner Bros. Discovery, marking one of the largest loans in history, while facing competition from Paramount's new offer, highlighting the fierce competition in the media merger landscape.
See More
ServiceNow Executive's Stock Purchase Signals Confidence
- Executive Stock Purchase: ServiceNow CEO Bill McDermott's plan to buy $3 million worth of shares on February 27 signals strong confidence in the company's future value, particularly after a significant stock price decline due to market fluctuations.
- AI Strategic Focus: McDermott emphasized that ServiceNow will prioritize the integration of generative AI, with the Now Assist AI suite expected to surpass $1 billion in annual contract value by the end of 2026, demonstrating the company's commitment to technological leadership in a rapidly evolving market.
- Strong Financial Performance: ServiceNow's subscription revenue grew by 19.5% in Q4, exceeding management's guidance, while remaining performance obligations increased by 22.5%, indicating robust future growth potential.
- Stock Buyback Plan: The board approved a $5 billion stock buyback plan, including a $2 billion accelerated repurchase, which will significantly boost earnings per share and further enhance investor confidence in the company's stock.
See More
