13 Best Technology Stocks to Buy for Long-Term Investment

5. ServiceNow Inc. (NYSE:NOW)

3-Year Revenue CAGR: 22.38%

Number of Hedge Fund Holders: 110

ServiceNow Inc. (NYSE:NOW) provides a cloud-based solution for digital workflows. It operates the Now platform, which is an AI platform for digital transformation ML, robotic process automation, process mining, analytics, and low-code/no-code development tools. It serves several sectors that range from government to healthcare & life science.

ServiceNow’s Now Assist product suite is focused on AI-powered workflows and is a significant driver of the company’s growth. This is evidenced by a more than quadrupling of Pro Plus deals year-over-year in Q1 2025, which included 39 deals with three or more Now Assist products. Pro Plus deals are customer agreements that include ServiceNow’s premium-tier offerings.

ServiceNow Inc. (NYSE:NOW) is making active AI innovations, as seen in the internal deployment of Now Assist. This resulted in efficiency gains like a 16x improvement in lead-to-sale conversion and over 86% deflection of manual work. On May 7, Scotiabank analyst Allan Verkhovski raised the firm’s price target on the stock to $1,100 from $1,075 while keeping an Outperform rating on the shares due to its strong position as an enterprise software company with an AI platform that is transforming its business.

Lakehouse Global Growth Fund stated the following regarding ServiceNow, Inc. (NYSE:NOW) in its January 2025 investor letter:

“US-based software company ServiceNow, Inc. (NYSE:NOW) delivered another impressive quarterly result. Revenues grew 21% year-on-year in constant currency terms to $2.9 billion and net income grew 30% year-on-year to $384 million. The company’s key performance indicators remained healthy, with their backlog (remaining performance obligations) growing 23% year-on-year to $22.3 billion (i.e. greater than 2x annual revenue) and renewal rates held firm at 98%. As we have noted in the past, the company’s renewal rates are remarkable as not only are they best-in-class, but they are also extremely consistent, typically in the range of 97% to 99%. These industry-leading renewal rates speak to the mission critical nature of the platform and are a key driver of the long-term annuity value in the business. Zooming out, we continue to believe ServiceNow is one the highest quality software businesses globally as the combination of consistent growth at scale, robust free cash flow generation and a large addressable market make it a compelling opportunity.”