ServiceNow: A Clear AI Winner With Scope For A Q3 Beat

Passage Research 6.04K Followers Follow Summary ServiceNow continues to demonstrate robust fundamentals, dispelling AI disruption fears and reinforcing its competitive position. Subscription revenues surged 23% to $3.8 billion, with cRPO and RPO growing 21.5% and 22% year over year, respectively. Professional services revenue remains a minor contributor at $109 million, not materially impacting the stock's trajectory. Recent results highlight strong forward momentum, supporting confidence in NOW's ongoing growth and resilience. Sundry Photography/iStock Editorial via Getty Images It's been just about a month since ServiceNow ( NOW ) reported earnings, and as the market has taken the time to digest many positive prints in the software space, I think the value creation case This article was written by Passage Research 6.04K Followers Follow Passage Research focuses on identifying variant perception through a blend of fundamental analysis and alternative data. The research process combines detailed financial modeling with real-time datasets to underwrite earnings power, margin durability, and forward expectations.The author has spent over a decade on Wall Street, most recently spending the last five years working in the hedge fund industry as an analyst. Typical coverage spans consumer, TMT, industrials and special situations, with an emphasis on asymmetric risk/reward and catalyst-driven opportunities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NOW over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.