Should You Be Bullish on ServiceNow (NOW)?

In its third-quarter 2025 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks specified arsenic ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) offers intelligent workflow automation solutions for integer businesses. The one-month instrumentality of ServiceNow, Inc. (NYSE:NOW) was -4.95%, and its shares mislaid 30.99% of their worth implicit the past 52 weeks. On December 24, 2025, ServiceNow, Inc. (NYSE:NOW) banal closed astatine $152.59 per share, with a marketplace capitalization of $158.448 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding ServiceNow, Inc. (NYSE:NOW) successful its 3rd 4th 2025 capitalist letter:

"Our weakest comparative show during the 4th came from the accusation exertion sector. Shares of ServiceNow, Inc. (NYSE:NOW) (NOW; 5.15%**) moved little contempt reporting beardown quarterly results. YoY maturation successful cRPO (current Remaining Performance Obligations) topped statement expectations (+21.5% vs. +19.4%) and subscription gross besides bushed statement estimates, driven by nett caller ACV (Annual Contract Value) outperformance and amended than expected on-premise sales. Investor concerns implicit NOW’s vulnerability to the U.S. Federal authorities person been an overhang for the stock, but NOW added six caller authorities logos during the quarter, and the institution has embedded conservatism into their guidance for adjacent quarter. New products are showing strength, and AI-embedded SKUs are gaining traction arsenic NOW closed 21 deals with 5+ Now Assist products (and the institution closed a $20m woody during the quarter). We judge investors whitethorn not grasp the dominance of NOW’s competitory presumption arsenic a workflow level that tin beryllium atop each systems of grounds successful a institution and supply workflow engines to get things done crossed aggregate systems. ServiceNow is profoundly entrenched crossed enterprises and whitethorn beryllium capable to service arsenic the azygous pane of solid for deploying and managing AI agents. We stay bullish connected shares."

ServiceNow, Inc. (NYSE:NOW) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 104 hedge money portfolios held ServiceNow, Inc. (NYSE:NOW) astatine the extremity of the 3rd quarter, compared to 106 successful the erstwhile quarter. Third 4th subscription revenues of ServiceNow, Inc. (NYSE:NOW) were $3.299 billion, marking a 20.5% year-over-year maturation successful changeless currency. While we admit the imaginable of ServiceNow, Inc. (NYSE:NOW) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.