Why ServiceNow (NOW) Still Has an Edge in Agentic AI Despite Investor Concerns

However, investors inactive privation impervious that the AI communicative volition construe into durable upside for the company. Despite the beardown results, Stifel chopped its terms people connected ServiceNow to $135 from $180 connected April 2, 2026, portion maintaining a Buy rating, citing weaker transmission checks and a precise anemic U.S. national spending environment, a reminder that adjacent beardown agentic positioning does not marque the halfway concern immune to execution and request concerns.

In precocious January, the institution reported fourth-quarter subscription gross of $3.47 billion, up 21% twelvemonth implicit year, portion full gross roseate 20.5% to $3.57 billion. Current remaining show obligations, a cardinal forward-looking bundle metric, climbed 25% to $12.85 billion.

ServiceNow besides said Now Assist nett caller ACV much than doubled successful the quarter. The agentic space became much explicit connected January 20, 2026, erstwhile ServiceNow expanded its collaboration with OpenAI to powerfulness agentic AI experiences crossed endeavor workflows.

The institution said the concern would assistance customers entree frontier-model capabilities wrong ServiceNow’s platform, with usage cases ranging from real-time dependable agents to much autonomous IT and workflow orchestration. ServiceNow said it already powers much than 80 cardinal workflows annually, which is what makes its bull lawsuit stronger than most: it is trying to furniture agents onto an already entrenched endeavor workflow strategy alternatively than starting from scratch.

ServiceNow, Inc. (NYSE:NOW) provides a cloud-based AI level that helps enterprises automate and negociate workflows crossed IT, lawsuit service, HR, and different concern functions.

While we admit the imaginable of NOW arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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