ServiceNow (NOW) used its Knowledge 2026 event to roll out new AI products like ServiceNow Otto and Project Arc, expand its AI Control Tower, and deepen partnerships with Microsoft, NVIDIA, Accenture, and Lenovo.

Despite the AI-heavy announcements at Knowledge 2026 and brief rallies around the event, ServiceNow’s share price has been under pressure, with a year to date share price return down 38.16% and a 1 year total shareholder return down 55.11%. However, the recent 1 month share price return of 9.86% suggests some momentum trying to rebuild after a weaker 90 day stretch.

If the Knowledge 2026 updates have you thinking more broadly about AI workflows, this is a good moment to scout other opportunities through our screener of 38 AI infrastructure stocks

With ServiceNow stock down sharply over the past year but still tied to big-ticket AI partnerships and long-term targets, the key question for you is simple: is this a reset that creates a buying opportunity, or is the market already pricing in that future growth?

Most Popular Narrative: 16.2% Undervalued

According to a widely followed narrative from user andre_santos, ServiceNow’s fair value of $108.81 sits above the recent $91.18 share price. This frames the current pullback in a very different light.

📈ServiceNow has stellar operating margins and solid revenue and EPS growth. Also, the fact that it is able to return (ROIC) above its estimated cost of capital is nice to see.

Read the complete narrative. Read the complete narrative.

This raises questions about what kind of revenue trajectory, margin profile, and earnings power are implied in that fair value, and how those assumptions line up with Monte Carlo outcomes and historical P/S anchors.

Result: Fair Value of $108.81 (UNDERVALUED)

However, this thesis still faces real tests, including potential disruption from AI across SaaS and ongoing shareholder dilution that could pressure returns if growth expectations fade.

Next Steps

With sentiment clearly mixed, this is a good time to review the numbers yourself and decide your own stance on ServiceNow. To see why some investors are optimistic, review the 3 key rewards

Looking for more investment ideas?

If ServiceNow has sharpened your focus, do not stop here. Your next opportunity could be sitting in plain sight among companies with very different profiles.

• Target consistent cash generators by scanning our list of stocks with resilient cash flows and strong foundations through the solid balance sheet and fundamentals stocks screener (44 results).
• Hunt for potential mispriced opportunities by checking companies that score well on quality while trading below intrinsic estimates using the 49 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.