Jim Cramer Discusses ServiceNow’s (NOW) Share Price Performance

Enterprise workflow absorption bundle supplier ServiceNow, Inc. (NYSE:NOW)’s shares are down by 50.9% implicit the past twelvemonth and by 32% year-to-date. Bank of America discussed the steadfast connected May 19th arsenic it reinstated sum and acceptable a $130 stock terms people and a Buy rating. The slope saw ServiceNow, Inc. (NYSE:NOW) arsenic a beneficiary of the AI rollout owed to its integration into the endeavor workflow ecosystem. While the shares are down year-to-date, they are up by 14.5% since May 13th. Cramer concisely commented connected the determination successful ServiceNow, Inc. (NYSE:NOW)’s shares:

“I was doing immoderate enactment connected Adobe, losing the schools. You cognize schools are truly important, due to the fact that you person to instrumentality a people connected Adobe to beryllium capable to usage Adobe. That stock’s been going up, I deliberation that that’s had its move. ServiceNow had its move.

“Do I similar that Micron is moving up of time? No. But ServiceNow’s had a bully run.”

Image by drobotdean connected Freepik

TCW Concentrated Large Cap Growth Fund discussed ServiceNow, Inc. (NYSE:NOW) successful its Q1 2026 capitalist letter:

“Our weakest comparative show during the 4th came from the accusation exertion and healthcare sectors. Shares of ServiceNow, Inc. (NYSE:NOW; 2.60%**) moved little contempt reporting coagulated quarterly results successful precocious January. Operating borderline (33.5%) and EPS (+30% YoY) topped statement estimates, and cRPO (current Remaining Performance Obligations) grew 20.5% (vs. guidance of +18%). Management’s sequential guardant guidance for cRPO was lone in-line with statement estimates, however, and provided ammunition for bears to posit NOW’s 3 caller acquisitions (Armis, Moveworks and Veza) were a awesome that integrated maturation whitethorn beryllium slowing. While we judge the integrated maturation outlook remains steadfast and that each 3 acquisitions are bully strategical fits that assistance grow NOW’s TAM (Total Addressable Market) and differentiation, the emergence of agentic AI led to an abrupt marketplace merchantability disconnected successful galore SaaS (Software-as-a-Service) stocks, including NOW. The market’s existent presumption is that well-funded AI labs specified arsenic Anthropic and OpenAI volition let enterprises to bypass specialized software, frankincense reducing the request for NOW’s offerings. Though we admit the manufacture is shifting distant from seat-based to consumption-oriented pricing structures, we judge the complexity and switching costs for an endeavor migration is misunderstood by the market. Our presumption remains that NOW is powerfully positioned to capitalize connected AI monetization fixed its relation arsenic the strategy of engagement crossed endeavor workflows. While inactive somewhat early, NOW’s monetization of AI offerings is awesome (closed 12 Now Assist deals implicit $1 cardinal successful ACV during the quarter, Agent Assist depletion grew 55x since the motorboat successful May 2025, and $600 cardinal ACV for Now Assist). We stay constructive connected shares.”