What Makes ServiceNow (NOW) One of the Best Businesses In the World?

2 hours ago 1

Soumya Eswaran

Wed, April 22, 2026 astatine 8:07 AM CDT 4 min read

Investment absorption company Vulcan Value Partners recently released its first-quarter 2026 capitalist letter. A transcript of the missive tin beryllium downloaded here. The steadfast focuses connected improving semipermanent returns and lowering hazard implicit short-term results. In the quarter, the Large Cap Composite (Net) returned -14.1%, the Small Cap Composite (Net) returned -6.8%, the Focus Composite (Net) returned -19.1%, the Focus Plus Composite (Net) returned -19.1% arsenic good arsenic the All-Cap Composite (Net) returned -13.5%. Throughout 2025 and escalating to the archetypal 4th of 2026, the marketplace is experiencing heightened volatility related to AI's potential, starring to mispricing of immoderate beardown companies. The existent marketplace turbulence presents opportunities for semipermanent investors consenting to judge short-term volatility successful stable-valued companies and amended the borderline of safety. The missive identified businesses into 3 groups with perceived /real AI disruption risk: Software, Alternative Asset Managers, and indirectly impacted businesses. The steadfast highlights that its concern strategy aims to leverage this volatility to trim hazard and summation returns successful the agelong term. In addition, delight cheque the Firm’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Vulcan Value Partners highlighted ServiceNow, Inc. (NYSE:NOW) arsenic a recently added position. ServiceNow, Inc. (NYSE:NOW) is simply a cloud-based bundle institution that provides a level for automating and managing integer workflows. On April 21, 2026, ServiceNow, Inc. (NYSE:NOW) closed astatine $100.14 per share. One-month instrumentality of ServiceNow, Inc. (NYSE:NOW) was -2.83%, and its shares mislaid 38.39% implicit the past 52 weeks. ServiceNow, Inc. (NYSE:NOW) has a marketplace capitalization of $104.75 billion.

Vulcan Value Partners stated the pursuing regarding ServiceNow, Inc. (NYSE:NOW) successful its Q1 2026 capitalist letter:

"We purchased 2 caller positions during the quarter: SAP SE and ServiceNow, Inc. (NYSE:NOW). We judge that ServiceNow is besides 1 of the champion businesses successful the world. ServiceNow automates workflows successful ample and analyzable enterprises. Their level sits connected apical of each of an enterprise’s information and systems of record. This precise unsocial and enviable presumption allows ServiceNow to orchestrate and automate enactment crossed departments, endeavor wide. To usage an analogy, if a ample endeavor is an airport, and its aggregate bundle applications are planes, ServiceNow is the power operation coordinating each of these planes/applications. The institution has grown from its roots successful IT and present has precise ample businesses successful income and service, HR, finance, proviso chain, operations, and security, arsenic good arsenic successful manufacture circumstantial verticals similar Financial Services, Healthcare, and Government.

ServiceNow grew gross 21%, adjusted EBIT 28%, and escaped currency travel per stock 33% successful 2025. This maturation astatine standard puts ServiceNow successful elite company. Despite the beardown performance, the banal is down astir 40% twelvemonth to day and 60% since the opening of 2025. The institution has been connected our MVP database for implicit 5 years and has compounded its worth astatine an unthinkable complaint implicit that period. It has ne'er been materially discounted until recently. We are thrilled to beryllium capable to ain this fantastic concern with a important borderline of safety..." (Click present to work the afloat text)

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