Will AI create the world’s first trillionaire?\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/a><\/p>\n Here’s why ServiceNow (NYSE: NOW) CEO Bill McDermott believes his company is a $1 trillion company in the making.<\/p>\n ServiceNow got its start as simple IT service management software, but it’s massively expanded its portfolio since. It now sports solutions for customer service, security, HR, finance, sales, legal, and just about any department you can think of at a large-scale enterprise. It counts 85% of the Fortune 500 as customers.<\/p>\n It continues to add new services to its platform with tuck-in acquisitions. It recently acquired cybersecurity provider Moveworks for $2.85 billion and agreed to buy another cybersecurity company, Armis, for $7.75 billion. Many investors are worried about the price tags on those acquisitions, but they put ServiceNow in a great position to provide cybersecurity solutions for agentic AI.<\/p>\n ServiceNow moved quickly to integrate generative AI solutions across its services a few years ago. Its Now Assist AI solution suite reached $600 million annual contract value as of the end of 2025. Management expects it to hit $1 billion this year.<\/p>\n All of this comes together under its AI Control Tower, which acts as a hub for AI agents, models, and workflows from Service Now itself and third-party providers. With its growing presence as a software provider in numerous departments among the largest enterprises, Service Now is well-positioned to act as the core of any AI software strategy going forward.<\/p>\n IDC estimates enterprises will spend $1.3 trillion on agentic AI-enabled applications and systems by 2029. ServiceNow aims to take a significant share of that spending by being the system IT teams use to manage their agentic AI fleets.<\/p>\n Story Continues <\/p>\n Bill McDermott expects to lead the company toward that goal. “You may have noticed that I recently extended my own commitment here to ServiceNow until 2030 and beyond,” he said during the company’s fourth-quarter earnings call. “There’s one reason I did this. Overwhelming belief in this company. This is a $1 trillion company in the making.”<\/p>\n McDermott didn’t just make a long-term career commitment to keep running ServiceNow; he also made it clear he thinks the stock is a bargain right now. Along with its fourth-quarter earnings release, ServiceNow announced a $5 billion share repurchase authorization, including a $2 billion accelerated share repurchase.<\/p>\n Indeed, ServiceNow looks like a great stock to buy right now. It produced subscription revenue growth of 19.5% in the fourth quarter, exceeding its guidance and analysts’ expectations. Adjusted operating margin expanded to 31% from 29.5%. And, as mentioned, it showed strong momentum in its AI services.<\/p>\n Investors may have been a bit disappointed in management’s 2026 outlook, which called for subscription revenue to climb 20.5% to 21%. But after stripping out the impact of acquisitions and the tailwind from currency fluctuations, that number falls below 20%. They may also be concerned about the increased spending on acquisitions over the past year, although management suggested it was done making big acquisitions for now.<\/p>\n Shares of the stock have also fallen amid the broader sell-off in SaaS stocks<\/a> as fears that AI will render many software companies less profitable increased in recent months. However, ServiceNow is well-positioned in the AI space, adopting the technology quickly and enabling businesses to use its platform with other AI services.<\/p>\n With the company’s enterprise value falling to less than 6.5 times revenue estimates for 2026, the stock looks like a great value relative to its potential growth right now. Whether it’s charting a path to $1 trillion remains to be seen, but it certainly looks to be worth more than $100 billion.<\/p>\n Before you buy stock in ServiceNow, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and ServiceNow wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $439,362!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,164,984!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 918% \u2014 a market-crushing outperformance compared to 196% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of February 11, 2026. <\/p>\n Adam Levy<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/02\/74fa2e1570239750f70fd1073f41f2a6.jpeg\")
Image source: Getty Images. <\/p>\n