ServiceNow released Yokohama platform with new AI agents, despite revenue impact concerns

From Nasdaq: 2025-03-17 11:50:00

ServiceNow launched the Yokohama platform, introducing new AI agents across domains like CRM, HR, and IT to enhance productivity and workflows. The platform includes ServiceNow Studio for rapid application development and saw significant growth in customers in Q4 2024, despite a 20.4% stock decline this year.

Subscription revenue growth for ServiceNow in 2025 is expected to be impacted by unfavorable forex and back-end loaded federal business, with modest sequential revenue growth projected. The company’s earnings estimate for 2025 remains steady at $16.24 per share, showing a 16.67% increase over 2024.

ServiceNow is leveraging AI technologies and partnerships with companies like NVIDIA and DXC Technology to enhance its solutions. Recent acquisitions like Quality 360 and Moveworks are expected to strengthen the company’s offerings. However, ServiceNow’s stock is currently overvalued, with a forward 12-month Price/Sales ratio higher than the sector average.

Despite the potential of ServiceNow’s GenAI portfolio and partner base to drive subscription revenues, concerns over unfavorable forex and a challenging economic environment remain. The stock, currently rated a Hold, is not attractive for value investors due to its stretched valuation. Investors are advised to wait for a more favorable time to accumulate the stock.



Read more at Nasdaq: Should You Buy or Hold ServiceNow Stock Post Yokohama Release?