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LAS VEGAS - ServiceNow (NYSE: NOW), a prominent player in the software industry with a market capitalization of $200.55 billion, has launched its new AI platform at the annual Knowledge 2025 event, which aims to enable comprehensive enterprise-wide orchestration with the integration of AI, data, and workflows. The platform has garnered adoption by industry leaders such as Adobe, Aptiv, the NHL, Visa, and Wells Fargo, who are leveraging it to achieve measurable business outcomes. According to InvestingPro data, ServiceNow maintains impressive gross profit margins of 78.92% and has demonstrated strong revenue growth of 21% over the last twelve months.
The ServiceNow AI Platform is designed to address the complexities businesses face, such as siloed systems and inconsistent data, by facilitating AI-driven transformation. With the claim that 55% of organizations using agentic AI have seen improved gross margins, ServiceNow positions its platform as a significant contributor to enhancing productivity across various business aspects. InvestingPro analysis reveals that ServiceNow maintains a "GREAT" overall financial health score, with particularly strong performance in growth and profit metrics. For deeper insights into ServiceNow’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
Bill McDermott, chairman and CEO of ServiceNow, highlighted the platform’s capability to integrate AI, data, and workflows, which he believes is unique to ServiceNow. The platform is expected to serve as a foundation for real-time enterprise operation and transformation.
Key features of the ServiceNow AI Platform include the AI Engagement Layer, which allows for complex tasks to be completed across systems, leveraging technologies such as Knowledge Graph, Workflow Data Fabric, and AI Agent Fabric. The platform also introduces the AI Control Tower for governance and management of AI agents and workflows, and AI Agent Fabric, which facilitates communication among AI ecosystems.
ServiceNow’s new offerings extend beyond the AI Platform, with the introduction of an enhanced, AI-powered CRM, a reasoning LLM and data flywheel integration named Apriel Nemotron 15B, developed in partnership with NVIDIA, and the launch of ServiceNow University to support organizational learning and transformation.
The event, which runs from May 6 through May 8, is set to feature additional announcements from ServiceNow in support of its AI plus data plus workflows strategy. With revenue reaching $11.47 billion and maintaining strong operational efficiency, ServiceNow continues to demonstrate solid financial performance. This news is based on a press release statement from ServiceNow. InvestingPro subscribers have access to over 15 additional key insights and metrics about ServiceNow’s valuation and growth potential, helping investors make more informed decisions about this technology leader.
In other recent news, ServiceNow has been the focus of several analyst evaluations following its Financial Analyst Day and Knowledge user conference in Las Vegas. Stifel analysts raised their price target for ServiceNow shares to $1,050, citing the company’s potential for margin growth and its focus on organic growth and strategic mergers. TD Cowen maintained a Buy rating with a $1,100 price target, highlighting ServiceNow’s role in monetizing General AI and its focus on enhancing capabilities in Data + Analytics and Orchestration + Governance. RBC Capital also increased its price target to $1,100, emphasizing ServiceNow’s unique market position in agentic AI and its successful monetization of GenAI technologies. BMO Capital reiterated its Outperform rating with a $1,025 target, noting the company’s efforts to expand its AI platform and sustain growth. JMP Securities reaffirmed a Market Outperform rating with a $1,300 target, underscoring ServiceNow’s strong market presence and strategic initiatives. These recent developments reflect the positive sentiment among analysts regarding ServiceNow’s growth prospects and strategic direction.
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