ServiceNow expands partnership with Google Cloud

SANTA CLARA, Calif. & SUNNYVALE, Calif. - ServiceNow (NYSE: NYSE:NOW) and Google (NASDAQ:GOOGL) Cloud have announced an expansion of their partnership, which will see ServiceNow’s platform and workflow solutions become available on Google Cloud Marketplace and Google Distributed Cloud. This collaboration aims to harness generative artificial intelligence (AI) to transform enterprise operations.

The ServiceNow Now Platform, along with its Customer Relationship Management (CRM), IT Service Management (ITSM), and Security Incident Response (SIR) offerings, will integrate with Google Cloud’s AI infrastructure and tools. This move is designed to bring AI-enhanced experiences to a broader user base and facilitate the development of AI-driven applications. The company’s strong market position is reflected in its robust revenue growth of 23.5% over the last twelve months, with total revenue reaching $10.46 billion.

ServiceNow’s Workflow Data Fabric will also be integrated with Google Cloud’s BigQuery, allowing users to connect their enterprise data to AI and leverage BigQuery analytics for real-time automation and decision-making on the Now Platform. This integration is expected to enhance CRM, ITSM, and SIR solutions by adding AI Agent capabilities and supporting proactive operational actions.

In addition, the partnership will focus on improving customer service experiences by automating and personalizing interactions across service channels. New integrations with Google Workspace will make ServiceNow data more accessible within productivity tools like Google Sheets and Chat, streamlining workflows for IT and HR teams.

ServiceNow’s offerings are slated to launch on Google Cloud Marketplace throughout the second and third quarters of the year, with new integrations across BigQuery, Customer Engagement Suite with Google AI, and Workspace anticipated later in the year. The CRM, ITSM, and SIR modules for Infrastructure Operators in Google-Operated and Partner-Operated models of Google Distributed Cloud are also expected to become available in the same timeframe.

This initiative represents a strategic move to leverage AI for enterprise optimization, promising to redefine the technology landscape for businesses globally. The collaboration is based on a shared vision of transforming work within the enterprise using generative AI. With an "GREAT" overall financial health score from InvestingPro, ServiceNow demonstrates strong operational execution. Investors can access detailed analysis and 17 additional ProTips about ServiceNow through InvestingPro’s comprehensive research reports, available for over 1,400 US stocks.

The information for this article is based on a press release statement.

In other recent news, ServiceNow has been a focal point for several financial firms, with Cantor Fitzgerald maintaining an Overweight rating on the stock and a steady price target of $1,332.00. The company, now valued at $237.31 billion, maintains a robust financial health score of 3.2. Despite potential concerns over the company’s fourth-quarter earnings for 2024, the firm remains optimistic about ServiceNow’s prospects in both the medium and long term.

ServiceNow has also announced plans to acquire Cuein, an AI-driven conversation data analysis firm, a move expected to enhance ServiceNow’s Workflow Data Fabric technology. This aligns with the company’s strong growth trajectory, which has seen a 23.48% revenue growth over the last twelve months.

TD Cowen maintains a positive outlook on ServiceNow, reiterating a Buy rating and a price target of $1,300.00. BofA Securities recently raised the price target for ServiceNow shares from $1,075 to $1,280, while JMP Securities increased its price target from $1,000 to $1,300, both maintaining positive ratings.

In the face of potential currency-related headwinds, Goldman Sachs maintains a $1,200 target on ServiceNow stock, expressing optimism about the company’s growth. Barclays (LON:BARC) also highlighted ServiceNow’s potential to benefit from more cost-efficient and accessible AI models, a development that has led to gains for the company’s stock. These are among the recent developments for ServiceNow.

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