Why Is ServiceNow Stock Rising?
ServiceNow (NYSE: NOW) is making waves in the stock market—and for good reason. The cloud-based workflow automation company has been on a tear lately, with its stock climbing 25% in the past year.
ServiceNow’s recent earnings blew expectations out of the water. Revenue soared past $3.2 billion, and earnings crushed estimates. That kind of beat doesn’t go unnoticed. The stock popped right after the announcement. The company has also lifted its full-year revenue outlook. While NOW stock has been rising, if you seek upside with lower volatility than individual stocks, the Trefis High Quality portfolio presents an alternative – having outperformed the S&P 500 and generated returns exceeding 91% since its inception.
The company’s “Now Assist” platform uses generative AI to automate workflows across IT, HR, customer service, and more. And it’s working—deal volume for AI-powered products surged, and customers are signing up fast. Everyone’s betting AI will be the future of enterprise tech, and ServiceNow is right in the sweet spot. Additionally, ServiceNow isn’t just landing small contracts. They signed nearly 90 deals worth over $1 million each just last quarter. Over 500 customers now spend more than $5 million a year. That kind of deep-pocket demand gives the stock real staying power.
ServiceNow has also made big inroads into the public sector, helping government agencies modernize. With everyone from local offices to federal agencies needing digital upgrades, that’s a huge growth runway—and a steady stream of recurring revenue.
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What’s Next?
If the company keeps riding the AI wave, landing big enterprise deals, and posting solid earnings beats, the momentum could keep rolling. ServiceNow’s positioning at the heart of digital workflows and enterprise AI means it still has room to grow—especially if the broader tech rally stays alive.
Not too happy about the volatile nature of NOW stock? The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.
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