Overview
- ServiceNow shares are down about 32% this year as investors rethink software valuations due to fears that fast‑improving AI agents could reduce demand for traditional tools.
- CEO Bill McDermott disclosed that half of new business now uses non‑seat pricing, including AI tokens that bill customers for usage as automated workflows do more of the work.
- Benchmark started coverage with a Buy rating and a $125 price target, and most analysts still rate the stock a Buy with an average target near $188, citing the platform’s deep ties to large enterprises.
- McDermott bought $3 million of ServiceNow stock in February, signaling personal confidence in the transition to usage‑based AI revenues.
- To widen its market and product reach, the company struck large deals for Armis, Moveworks, and Veza, and it guides to about 21% GAAP subscription growth within a total addressable market it pegs near $600 billion.