ServiceNow is pursuing fresh momentum amid a sector-wide pullback by linking with management consultancy Kearney to push clients toward AI-enabled digital transformation on the ServiceNow AI Platform. The collaboration centers on agentic AI and process automation, with three key pillars highlighted in the firms’ release: faster handling of exceptions (Operational Excellence), streamlined workflows to accelerate processes, and a measurable end-to-end impact from AI and workflow automation.
A concrete example from a client project illustrates the approach: an IT organization was moved into an “agentic, AI-first” operations model, delivering more than a 30% annual reduction in run-costs.
Wedbush Reinstates ServiceNow on IVES AI 30 Index
Wedbush Securities added ServiceNow back to its IVES AI 30 Index on Monday after the stock exited the list in December 2025. Salesforce was also reintroduced, while Roblox and Baidu were removed from the lineup.
The broker notes that this move challenges the idea that ServiceNow is a structural loser in the AI upgrade cycle. In Wedbush’s view, AI serves as a tailwind for established platforms. The firm cites a large, entrenched data footprint within enterprise infrastructures as a moat that new AI entrants cannot simply supplant.
Is the Software Sell-Off Overdone?
The pressure is broader than any single name. The iShares Expanded Tech-Software Sector ETF has fallen by more than 20% since the start of the year. ServiceNow itself has slid more than 22% from January 29, according to market data.
Should investors sell immediately? Or is it worth buying ServiceNow?
The latest wave of selling intensified after Anthropic updated its Claude assistant and OpenAI followed with new enhancements. In parts of the market, the term “SaaSpocalypse” circulated.
Yet several analysts push back on the strongest disruption fears. Morgan Stanley pointed out that some software stocks are trading at substantial discounts relative to fair value after the broad, largely indiscriminate selloff—discounts of 50% or more are not uncommon. Jason Ader of William Blair characterized the situation as a “baby-with-the-bathwater” moment. Morgan Stanley’s Keith Weiss added that open-source software has existed for more than two decades, and markets for third-party software have continued to grow even with free alternatives.
The Numbers Back the Business
ServiceNow posted fourth-quarter 2025 revenue of $3.58 billion, up 19.5% year over year. For the full year 2025, revenue came in at $13.28 billion. Remaining Performance Obligations (RPO) stood at $12.85 billion, reflecting a 25% year-over-year increase.
On the AI front, ServiceNow continues to broaden its ecosystem: Anthropic’s Claude models are integrated, and the company collaborates on agentic-AI products with OpenAI and Microsoft. Looking ahead, the company guided first-quarter 2026 subscription revenue in a range of $3.650 billion to $3.655 billion.
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