Does ServiceNow’s AI Push, Security Deal, and Stock Split Reshape The Bull Case For NOW?

• In recent days, ServiceNow shareholders approved a 5-for-1 stock split effective December 17, 2025, while the company moved to acquire identity-security firm Veza and saw partners like Veeam, Vbrick, 3E, and Keeper Security deepen integrations with the ServiceNow AI Platform.
• Alongside a CA$110 million commitment to Canadian public-sector AI infrastructure and a new Canada Centre of Excellence, these moves collectively strengthen ServiceNow’s position in AI-enabled workflows, security, and compliance across regulated and government markets.
• We’ll now examine how ServiceNow’s CA$110 million Canadian AI investment and expanded security capabilities could reshape its existing investment narrative.

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ServiceNow Investment Narrative Recap

To own ServiceNow today, you need to believe its AI-led workflow platform can keep attracting large, complex enterprises despite premium pricing and rising competition. Near term, the key catalyst remains execution on AI-powered workflows across regulated and public-sector customers, while the biggest risk is that heavy AI and expansion spending compresses margins. The new stock split and Canada and security moves are directionally positive but do not materially change those core drivers on their own.

Among the latest announcements, the CA$110 million Canadian AI investment is especially relevant. It directly ties into ServiceNow’s public-sector growth catalyst by funding local, AI-ready infrastructure and a Canada Centre of Excellence that supports government modernization. For investors focused on whether AI adoption can scale beyond early wins, this commitment offers a concrete example of how ServiceNow is trying to embed its AI platform inside mission-critical public services.

But investors should also be aware that higher AI and geo-expansion spend could pressure margins if...

Read the full narrative on ServiceNow (it's free!)

ServiceNow's narrative projects $20.3 billion revenue and $3.3 billion earnings by 2028. This requires 18.9% yearly revenue growth and roughly a $1.6 billion earnings increase from $1.7 billion today.

Uncover how ServiceNow's forecasts yield a $1155 fair value, a 33% upside to its current price.

Exploring Other Perspectives

By contrast, the most optimistic analysts already expected revenue to reach about US$20.3 billion and earnings US$4.2 billion by 2028, so these AI and security announcements could either reinforce that bullish case or expose how ambitious it really is once you weigh the added cost and execution risk.

Explore 16 other fair value estimates on ServiceNow - why the stock might be worth as much as 49% more than the current price!

Build Your Own ServiceNow Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ServiceNow research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free ServiceNow research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ServiceNow's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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