Is NOW a good stock to buy? We came across a bullish thesis on ServiceNow, Inc. on Jimmy’s Journal’s Substack by Jimmy Investor. In this article, we will summarize the bulls’ thesis on NOW. ServiceNow, Inc.’s share was trading at $103.07 as of April 22nd. NOW’s trailing and forward P/E were 61.72 and 24.57 respectively according to Yahoo Finance.
ServiceNow (NOW) is positioned as a leading enterprise workflow platform benefiting from the shift toward agentic AI and “systems of action,” where software executes end-to-end processes rather than simply recording or suggesting tasks. The company operates across IT, employee, customer, and creator workflows on a unified Now Platform, deeply embedded within Fortune 500 enterprises with high switching costs driven by its CMDB, integrations, and cross-department orchestration.
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While markets have recently re-rated the stock amid concerns of AI disruption, the business fundamentals remain strong, supported by structurally high net revenue retention above 120%, sub-2% churn, and a land-and-expand model that allows customers to scale from hundreds of thousands to multi-million-dollar contracts. ServiceNow is increasingly benefiting from AI monetization through Now Assist, which has already surpassed $250 million in ACV and is growing rapidly as enterprises layer generative and agentic AI onto existing workflows.
The firm’s AI Control Tower further strengthens its positioning as a governance layer for enterprise-wide AI deployment, regardless of vendor, reinforcing its platform defensibility. Financially, ServiceNow continues to deliver ~20%+ revenue growth on a $13+ billion base, gross margins near 78%, and expanding cRPO growth, reflecting durable demand visibility.
Despite near-term concerns around pricing model transitions and macro sensitivity, the company is well placed in the third wave of enterprise software as “systems of action” expand its TAM toward hundreds of billions. With disciplined leadership, strong buybacks, and accelerating AI-driven expansion, ServiceNow remains a compounder with durable competitive advantages and long-term upside potential as enterprise AI adoption deepens.
Previously, we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted its AI-driven workflow automation platform, enterprise stickiness and long-term TAM expansion. NOW’s stock price has depreciated by approximately 33.25% since our coverage. Jimmy’s Journal shares a similar view but emphasizes on AI agent monetization, governance via AI Control Tower, and operating leverage across workflow expansion, reinforcing the same compounder thesis through a more agentic AI-focused lens.
ServiceNow, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 118 hedge fund portfolios held NOW at the end of the fourth quarter which was 104 in the previous quarter. While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
