From Nasdaq: 2025-05-08 15:00:00

ServiceNow shares have declined 7.2% year to date due to worsening macroeconomic conditions post-tariffs imposed by President Trump. However, new collaboration with Amazon’s AWS aims to enhance data management and decision-making, benefiting the company’s expanding portfolio and partner base. YTD Performance data shows the company’s struggle against sector and industry declines.

ServiceNow’s rich partner base, including Amazon, Microsoft, NVIDIA, Zoom Communications, and Vodafone Business, has facilitated significant growth, with 72 transactions over $1 million in ACV in Q1 2025. Collaborations with NVIDIA, Zoom Communications, and Vodafone Business have driven innovation and customer service enhancements, contributing to a 20% year-over-year customer growth.

ServiceNow’s expanding portfolio includes AI agents in Security and Risk solutions, Core Business Suite, and recent acquisition of Logik.ai. Earnings estimates for Q2 2025 show a 12.78% increase over 2024, with revenue estimates up by 18.81%. However, the stock is considered overvalued with a forward Price/Sales ratio higher than the sector average.

Experts recommend keeping an eye on ServiceNow stock, given its robust AI portfolio and strong partner base. While the company is expected to drive clientele growth, challenges like unfavorable forex, competition, and tariff concerns persist. With a Zacks Rank #3 (Hold), investors are advised to wait for a more opportune time to invest in NOW stock. ServiceNow has consistently beaten earnings estimates in the past four quarters.



Read more at Nasdaq: Can NOW’s Strong Portfolio & Rich Partner Base Push the Stock Higher?