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ServiceNow (NYSE:NOW) is under fresh scrutiny as generative AI raises questions about the durability of legacy software models across the industry.
The company has expanded its collaboration with Anthropic to embed advanced AI models into workflow automation and app development on the Now Platform.
ServiceNow is also rolling out AI driven solutions with clients such as Panasonic Avionics and Fiserv, signaling real world deployments rather than pilot projects.
For investors watching NYSE:NOW at a share price of $100.74, these AI moves arrive after a difficult stretch for the stock, with a 30 day return of 29.0% and a year to date return of 31.7%. The 1 year return of 50.0% contrasts with a 9.9% return over 3 years and a 14.8% return over 5 years, which gives a sense of how sharp the recent reset has been.
The key question now is whether ServiceNow can use its Anthropic partnership and customer deployments to keep its workflow platform central as generative AI spreads across enterprise IT. As more companies reassess software spending through an AI lens, investors may focus on how quickly these AI features translate into durable usage, broader adoption across large customers, and differentiated capabilities compared with rivals.
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NYSE:NOW 1-Year Stock Price Chart
Why ServiceNow could be great value
✅ Price vs Analyst Target: At US$100.74, ServiceNow trades about 47% below the US$189.97 analyst price target range midpoint.
✅ Simply Wall St Valuation: Shares are flagged as undervalued, trading 40.1% below the current fair value estimate.
❌ Recent Momentum: The 30 day return of 28.96% decline shows weak short term sentiment despite the AI news.
Check out Simply Wall St’s in depth valuation analysis for ServiceNow.
📊 The Anthropic tie up and live AI deployments aim to keep the Now Platform relevant as enterprises question legacy software models.
📊 Watch how quickly AI features gain traction with large customers, any impact on revenue growth, and whether the high 60.3x P/E and 44.3x forward P/E stay supported by earnings.
⚠️ The main risk in this context is that generative AI could compress pricing power or shift budgets toward new platforms if ServiceNow’s AI tools do not stand out.
For the full picture including more risks and rewards, check out the complete ServiceNow analysis.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NOW.
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