ServiceNow (NYSE: NOW) has been one of the hardest-hit names in this year’s rotation out of software.
Shares are down about 60% from their prior highs as investors worry that artificial intelligence (AI) could disrupt enterprise software
But the company’s first-quarter results were solid, and management continues to frame ServiceNow as the operating system that will control, secure, and monitor AI agents. While there are uncertainties about the long-term impact of AI on the software market, I think Wall Street is likely underestimating ServiceNow’s value to enterprises. Demand for ServiceNow’s AI product is growing rapidly There’s no mistaking ServiceNow’s momentum heading into 2026.
In the first quarter, subscription revenue grew 19% year over year to nearly $3.7 billion on a constant-currency basis. That beat expectations and led management to raise its full-year outlook. ServiceNow now expects full-year subscription revenue (adjusted for currency changes) to increase 20.5% to 21%.