• In late January 2026, ServiceNow reported fourth-quarter and full-year 2025 results showing higher revenue and earnings year on year, raised its 2026 subscription revenue outlook, expanded its share repurchase authorization to US$9.50 billion, and detailed new AI collaborations and customer wins across sectors like aviation and financial services.
• A particularly interesting development is ServiceNow’s deepened partnership with Anthropic, making Claude the default model for its Build Agent and embedding agentic AI workflows across internal operations and industry-specific solutions.
• With these earnings, expanded buybacks, and intensified AI integration as context, we’ll explore what this means for ServiceNow’s investment narrative.

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What Is ServiceNow's Investment Narrative?

To own ServiceNow today, you have to believe in its role as a core workflow and AI platform for large enterprises, not just another SaaS vendor. The latest quarter backs that up: revenue and earnings grew year on year, subscription guidance for 2026 moved higher, and AI products and large deals were a clear focus. At the same time, the stock has sold off hard as investors reassess software valuations and worry about AI disrupting traditional models. The Anthropic deal, making Claude the default model for Build Agent, and internal agentic AI deployments speak directly to that concern by framing ServiceNow as an enabler of AI rather than a victim of it. Expanded buybacks, now authorized up to US$9.50 billion, underline management’s confidence, but they do not remove execution risk around acquisitions, AI monetization, or organic growth.

Yet there is one emerging risk in ServiceNow’s story that investors cannot afford to ignore.

Despite retreating, ServiceNow's shares might still be trading 27% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Fifteen fair value estimates from the Simply Wall St Community span roughly US$160 to a very large US$900 plus per share, underlining how far apart individual views can be. Set against that spread, the recent AI driven sell off, elevated valuation multiples and reliance on successful integration of Anthropic powered workflows give plenty of reasons to compare several perspectives before deciding how ServiceNow fits into your portfolio.

Explore 15 other fair value estimates on ServiceNow - why the stock might be worth just $160.29!

Build Your Own ServiceNow Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ServiceNow research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free ServiceNow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ServiceNow's overall financial health at a glance.

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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.