Is NOW a good stock to buy? We came across a bullish thesis on ServiceNow, Inc. on Growth Curve Investing’s Substack. In this article, we will summarize the bulls’ thesis on NOW. ServiceNow, Inc.’s share was trading at $114.19 as of June 8th. NOW’s trailing and forward P/E were 71.05 and 28.49 respectively according to Yahoo Finance.
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ServiceNow, Inc. (NOW) is positioned as a leading enterprise workflow and AI automation platform that has become deeply embedded in the operating infrastructure of large global enterprises. Originally built as an IT service management platform, the company has expanded into HR, customer service, security operations, financial workflows, and AI-driven automation, now processing roughly 85 billion workflows and nearly 7 trillion transactions globally.
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Despite its strong positioning, the stock declined more than 50% from its peak amid fears that generative AI and large language models could disrupt the business. However, the thesis argues that these concerns are overstated because ServiceNow’s core advantage lies not in providing AI answers, but in executing enterprise workflows and automating actions across integrated systems. The company generated $13.3 billion in FY2025 revenue, growing 21% year-over-year, while maintaining approximately 34% free cash flow margins and over $12.85 billion in current remaining performance obligations, providing strong visibility into future growth.
ServiceNow’s AI strategy centers around Now Assist and its broader “AI Control Tower” vision, supported by acquisitions such as Moveworks, Veza, and Armis, which collectively expand the company’s ability to manage AI agents, enterprise identities, and operational technology security.
The company’s workflow data gravity, high switching costs, and growing AI monetization opportunities are viewed as key competitive advantages against Microsoft and Salesforce. While risks remain around seat-based pricing compression and acquisition integration, the article argues that the current valuation presents an attractive long-term opportunity, with potential upside toward $200–250 over the next several years as sentiment and AI monetization improve.
Previously, we covered a bullish thesis on ServiceNow, Inc. (NOW) by Compounding Your Wealth in April 2025, which highlighted the company’s dominant workflow automation platform, strong AI-driven enterprise transformation opportunities, and high switching costs across Fortune 500 customers. NOW’s stock price has depreciated by approximately 25.86% since our coverage. Growth Curve Investing shares a similar view but emphasizes the recent valuation reset and AI monetization upside.
ServiceNow, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held NOW at the end of the first quarter which was 118 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.
