ServiceNow

ServiceNow has delivered in recent weeks, and the stock market has rewarded it. 50 percent over 30 days. For me, this is more than a short-term relief rally – it is confirmation that ServiceNow is one of the few companies in the software industry's AI race that is actually generating revenue from the technology. On July 22, ServiceNow presented its second-quarter 2026 figures, which were broadly convincing. 86 dollars. 52 percent above expectations. 20 billion dollars. I find the pace of AI monetization particularly remarkable. 00 billion dollar mark in annualized contract value, while agentic deployments have increased ninefold within nine months.

This is not a vague future vision, but proven growth in the present – and that is precisely what likely explains Friday's share price jump. 5 percent. The operating margin is expected to be 31 percent. 5 percent. Only foreign exchange effects due to the strong dollar slightly cloud the picture – ServiceNow quantified the headwind for the third quarter at around 35 million dollars in contract obligations. ServiceNow Stock: Buy or Sell? And here I come to the point that makes me think the most. Parallel to the strong figures, media reported on plans to cut up to 1,000 roles in the course of 2026 – a consequence of integrating the acquired companies Moveworks, Veza, and Armis.

ServiceNow started the year with around 29,000 employees and currently has about 30,000 employees. CEO Bill McDermott has publicly committed in conference calls to lead the company into 2027 with the same headcount as at the beginning of the year – before the acquisitions. For me, this shows a company in transformation, not in crisis. 5 percent for the full year – does not suffer. Those who only look at the growth figures overlook this friction. The analyst community remains generally positive with a consensus "Buy" rating from 32 houses, although no fresh price target discussion can be derived from this.

Ultimately, for me, the arguments for ServiceNow outweigh the negatives: AI monetization is real and growing faster than the rest of the business, and guidance has been raised, not lowered. The job cuts are unpleasant, but they are part of a plan, not a panic reaction. New ServiceNow analysis from August 08 provides the answer: The latest ServiceNow figures speak a clear language: Urgent need for action for ServiceNow shareholders. Is it worth getting in or should you rather sell? In the current free analysis from August 08, you will find out what to do now.

ServiceNow: Buy or sell?