ServiceNow Grants $2.5 Million to City Year for Student Success
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 30 minutes ago
0mins
Source: Newsfilter
- Grant Amount: ServiceNow has awarded a $2.5 million grant to City Year aimed at expanding student success and creating new career pathways to address the rapidly evolving AI-driven economy.
- Market Coverage: This funding will support City Year’s efforts across six U.S. markets—Bay Area, Boston, Columbus, Los Angeles, Miami, and New York City—as well as its initiatives in the UK, ensuring more students receive essential academic and interpersonal skill development.
- Career Development Opportunities: Through the Discover ServiceNow program, participating AmeriCorps members will gain a four-day immersive experience that enhances AI fluency, problem-solving skills, and customer engagement, along with access to paid internships and full-time career opportunities.
- Technology Innovation Partnership: ServiceNow will collaborate with City Year to explore AI-enabled solutions aimed at increasing operational efficiency and impact, further advancing student success and the cultivation of future-ready talent.
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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: 127.650
Low
172.00
Averages
222.81
High
263.00
Current: 127.650
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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- Grant Amount: ServiceNow has awarded a $2.5 million grant to City Year aimed at expanding student success and creating new career pathways to address the rapidly evolving AI-driven economy.
- Market Coverage: This funding will support City Year’s efforts across six U.S. markets—Bay Area, Boston, Columbus, Los Angeles, Miami, and New York City—as well as its initiatives in the UK, ensuring more students receive essential academic and interpersonal skill development.
- Career Development Opportunities: Through the Discover ServiceNow program, participating AmeriCorps members will gain a four-day immersive experience that enhances AI fluency, problem-solving skills, and customer engagement, along with access to paid internships and full-time career opportunities.
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- Customer Spending Surge: ServiceNow's Now Assist AI product saw a 130% year-over-year increase in customers spending over $1 million in Q1, indicating strong demand for its automation platform and reinforcing its market position.
- Contract Value Growth: The company closed 16 deals worth over $5 million in new annual contract value, demonstrating long-term commitment from enterprises and potentially signaling a buying opportunity for investors.
- Revenue and Backlog Increase: Subscription revenue grew by 22% year-over-year, while backlog increased by 25% to nearly $28 billion, reflecting customer trust and ongoing investment in ServiceNow, suggesting a stable revenue stream ahead.
- Attractive Market Valuation: Despite a nearly 42% drop in stock price, ServiceNow's forward price-to-earnings ratio has fallen to around 30 times, significantly lower than historical levels, providing investors with an opportunity to enter this rapidly growing subscription business at a more attractive price.
See More
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- Significant Contract Growth: The company closed 16 deals worth $5 million or more in new annual contract value, suggesting this momentum may present a buying opportunity for investors and reflects corporate trust in AI solutions.
- Rising AI Product Demand: The number of customers spending $1 million or more on the Now Assist AI product surged 130% year-over-year, indicating increased trust in AI deployment, positioning ServiceNow as a trusted provider for safe, scalable AI solutions.
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See More
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- Grant Amount: ServiceNow has awarded a $2.5 million grant to City Year aimed at expanding student success and creating new career pathways to address the rapidly evolving AI-driven economy.
- Market Coverage: This funding will support City Year’s efforts across six U.S. markets—Bay Area, Boston, Columbus, Los Angeles, Miami, and New York City—as well as its initiatives in the UK, ensuring more students receive essential academic and interpersonal skill development.
- Career Development Opportunities: Through the Discover ServiceNow program, participating AmeriCorps members will gain a four-day immersive experience that enhances AI fluency, problem-solving skills, and customer engagement, along with access to paid internships and full-time career opportunities.
- Technology Innovation Partnership: ServiceNow will collaborate with City Year to explore AI-enabled solutions aimed at increasing operational efficiency and impact, further advancing student success and the cultivation of future-ready talent.
See More
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- Market Decline: The S&P 500 index fell by 0.57%, the Dow Jones Industrial Average dropped by 0.58%, and the Nasdaq 100 decreased by 0.60%, indicating market vulnerability amid escalating US-Iran tensions, which negatively impacted investor sentiment.
- Mixed Tech Performance: While Marvell Technology surged over 6%, software companies like Atlassian and Datadog saw declines exceeding 7%, highlighting significant internal divergence within the tech sector that could affect overall market stability.
- Supportive Employment Data: The May ADP employment change rose by 122,000, surpassing expectations of 120,000 and marking the largest increase in 16 months, indicating resilience in the US labor market that may provide support for stocks.
- Mortgage Applications Decline: For the week ending May 29, US MBA mortgage applications fell by 2.5%, with the purchase mortgage sub-index down 2.9%, reflecting pressure from rising interest rates on the housing market, which could impact future consumer spending.
See More
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- Stock Surge: ServiceNow's stock surged 41% in May, indicating a recovery in market confidence regarding its future, despite previous declines due to concerns over SaaS stocks.
- AI Market Adaptation: While the SaaS sector faces challenges, ServiceNow's management asserts that its Control Tower service is designed to address the rise of agentic AI, effectively integrating AI agents and services within organizations.
- Strong Customer Base: With over 8,800 clients deeply embedded in their workflows, ServiceNow's long-term commitments from top companies make it difficult for clients to replace its services, thereby strengthening its market position.
- Robust Financial Performance: ServiceNow reported a 23% year-over-year revenue increase, a 25% rise in remaining performance obligations (RPO), an adjusted operating margin of 33%, and a free cash flow margin of 44%, with management forecasting similar growth trends ahead.
See More
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- Product Innovation: ServiceNow's recent launch of the Control Tower product aims to manage clients' agentic AI workflows, showcasing the company's proactive approach to future market demands despite the overall decline in SaaS stocks.
- Positive Market Reaction: According to S&P Global Market Intelligence, ServiceNow's stock soared 41% in May, indicating a recovery in market confidence regarding its future prospects, particularly after an analyst reinstated a buy rating.
- Strong Financial Performance: ServiceNow reported a 23% year-over-year revenue increase, a 25% rise in remaining performance obligations (RPO), an adjusted operating margin of 33%, and an adjusted free cash flow margin of 44%, demonstrating robust performance in the current economic climate.
- Optimistic Future Outlook: Management anticipates stable revenue growth moving forward, with adjusted operating and free cash flow margins projected at 32% and 35%, respectively, suggesting that the company's strategic positioning in the AI sector will further drive business growth.
See More
