Claude assigns a 20% probability to AI disrupting ServiceNow but remains bullish on its role in enterprise workflows.
Anthropic’s AI model Claude ranked ServiceNow (NOW) third in its top AI stock portfolio, citing its role as a control center for enterprise workflows and AI agents. The model dismissed concerns over AI disruption, assigning only a 20% probability to the bear case that AI could replace parts of ServiceNow’s software over time.
ServiceNow’s valuation currently trades at roughly 18x fiscal 2027 earnings, below its five-year average of 35x and peer SaaS companies at 25x. CEO Bill McDermott previously stated the company’s bear case targets $30 billion in subscription revenue by 2030, up from $12.8 billion last year.
Claude highlighted ServiceNow’s Now Assist AI offering, which monetizes through additional seat pricing rather than replacing its core platform. The stock remains the largest holding in Claude’s AI portfolio, despite Wall Street skepticism about its long-term growth prospects.