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ServiceNow's Revenue Growth Is Accelerating: Is the Stock a Buy Now?

The stock is down 37% this year, but management is raising its full-year guidance.

ServiceNow's Revenue Growth Is Accelerating: Is the Stock a Buy Now?

Published July 27, 2026 · Category: Finance

Overview

ServiceNow (NYSE: NOW) stock has fallen 37% so far this year, as Wall Street has grown more concerned about the potential for agentic AI to disrupt traditional software businesses' pricing and put pressure on their sales. Yet ServiceNow's revenue growth has accelerated each quarter this year, making the stock's discounted valuation a compelling opportunity for investors.

Image source: Getty Images.

ServiceNow has described itself as the "AI Control Tower" for the enterprise. AI agents require governance and security, which could drive significant demand for ServiceNow's offerings over the long term. The company reported a 24% year-over-year increase in revenue in the second quarter, up from 22% growth in Q1 and 20.5% in Q4 2025.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.