NOW Expands AI Adoption: Can Subscription Growth Accelerate Further?

ServiceNow NOW is expanding the use of AI-powered workflows across industries to support customer growth and boost subscription revenues. NOW has been adding generative AI features across its key products to help enterprises automate services, follow compliance rules and improve efficiency.Now Assist continues to gain traction across the platform. It is being used to accelerate case resolution, streamline service requests and enable intelligent self-service across IT, employee and customer workflows. The Pro Plus tier packages these capabilities into prebuilt modules, while RaptorDB enhances performance with higher throughput and faster analytics. These offerings contributed to 72 transactions of more than $1 million in net new Annual Contract Value in the first quarter of 2025, reflecting strong enterprise demand for AI-native workflows.ServiceNow is benefiting from an expanding partner base as adoption expands across enterprise customers. Vodafone is implementing ServiceNow’s AI stack to modernize global service operations, while Aptiv is co-developing workflow solutions across industrial and automotive environments. Collaboration with Devoteam is supporting CRM transformation across Europe and the Middle East, helping enterprises digitize engagement at scale.The launch of the Singapore Protected Platform (SPP-SG) adds a sovereign AI cloud offering tailored to regulated sectors. Built on Microsoft Azure and compliant with Multi-Tier Cloud Security Level 3 standards, SPP-SG enables government agencies to adopt AI workflows with in-country data residency.NOW Faces Stiff CompetitionServiceNow faces growing competition from Salesforce CRM and BigBear.ai BBAI, both of which are expanding their AI capabilities and platform reach across enterprise and public sector workflows.Salesforce is advancing its AI strategy with Einstein Copilot, a generative AI assistant embedded across sales, service and support workflows. The assistant helps automate case resolutions, generate summaries and streamline CRM interactions, directly overlapping with ServiceNow’s Now Assist, Pro Plus and customer service offerings. Salesforce’s strong client base in front-office automation makes it a key competitor in AI-powered enterprise transformation.BigBear.ai is focused on AI-driven decision intelligence and autonomous workflows, particularly in public sector and regulated environments. The company delivers mission-critical analytics and AI orchestration for defense, logistics and national security operations. As ServiceNow expands sovereign cloud offerings like SPP-SG, BigBear.ai’s footprint in public workflows positions it as a direct challenger in government-focused AI deployment.NOW’s Share Price Performance, Valuation and EstimatesServiceNow’s shares have declined 7.5% year to date, while the broader Zacks Computer & Technology sector has increased 0.9% and the Computer-IT services industry has plunged 10.5%.Now's PerformanceImage Source: Zacks Investment ResearchServiceNow stock is trading at a premium, with a forward 12-month Price/Sales of 14.34X compared with the industry’s 18.47X. NOW has a Value Score of F.NOW’s ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for ServiceNow’s second-quarter 2025 earnings is pegged at $3.53 per share, unchanged over the past 30 days, indicating 12.78% year-over-year growth.ServiceNow, Inc. Price and Consensus ServiceNow, Inc. price-consensus-chart | ServiceNow, Inc. QuoteThe consensus mark for NOW’s 2025 earnings is pegged at $16.51 per share, which has remained unchanged over the past 30 days. The figure indicates an 18.61% increase year over year.ServiceNow currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rak (Strong Buy) stocks here. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report BigBear.ai Holdings, Inc. (BBAI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks