TCW Concentrated Large Cap Growth Fund Maintains a Constructive View on ServiceNow (NOW)

9 hours ago 3

Soumya Eswaran

Wed, May 20, 2026 astatine 8:14 AM CDT 4 min read

TCW Funds, an concern absorption firm, published its first-quarter 2026 capitalist missive for the 'TCW Concentrated Large Cap Growth Fund.' A transcript of the missive is disposable to download here. The archetypal 4th was marked by volatility successful equity markets, driven by geopolitical tensions, concerns astir the backstage recognition sector, a authorities shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a nett nonaccomplishment of 11.75%, lagging down the Russell 1000 Growth Index instrumentality of -9.78%. The Fund considers the market's broadening arsenic a steadfast motion and remains assured that the marketplace volition yet admit the portfolio's intrinsic value. Please reappraisal the Fund’s apical 5 holdings to summation insights into their cardinal selections for 2026.

In its first-quarter 2026 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks similar ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) is simply a cloud-based bundle institution that provides a level for automating and managing integer workflows. On May 19, 2026, ServiceNow, Inc. (NYSE:NOW) closed astatine $101.83 per share. One-month instrumentality of ServiceNow, Inc. (NYSE:NOW) was -1.20%, and its shares mislaid 49.83% implicit the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a marketplace capitalization of $105.02 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding 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."

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