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Software stocks have been under pressure in 2026 amid fears that artificial intelligence (AI) will reduce demand for enterprise software through a combination of agentic task completion and full-on displacement by generative AI-based apps.<\/p>\n
ServiceNow<\/strong> (NYSE: NOW)<\/span> — a leading software-as-a-service (SaaS<\/a>) solution for IT service management, HR, customer service, and more — even admitted that its own AI tools will lead to fewer users over time at its recent analyst day. And despite management sharing first-quarter results that beat its outlook on both the top and bottom lines, investors sold off the stock over fears about the business\u2019s future growth.<\/p>\n Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/span><\/a><\/em><\/p>\n Despite the market\u2019s concerns about the company, the stock’s long-term outlook remains strong, and it could be a great investment opportunity right now.<\/p>\n ServiceNow grew subscription revenue by 19% year over year in the first quarter, prompting management to slightly raise its full-year guidance. But some analysts were concerned about how ServiceNow generates revenue growth.<\/p>\n The company\u2019s top line benefited from three acquisitions last quarter: MoveWorks, Veza, and Pyramid. The latter two acquisitions closed in March and had a limited impact on the top line. The company did, however, benefit from MoveWorks throughout the entire quarter, but its impact would\u2019ve been baked into management\u2019s guidance.<\/p>\n However, management closed its acquisition of Armis earlier than anticipated in April, which could have led to an increase in full-year guidance. Management dismissed the notion during the earnings call and noted strong organic revenue growth.<\/p>\n Remaining performance obligation growth was again strong in the first quarter, climbing 25% year over year. That\u2019s in line with its growth from the first quarter of 2025, and the company now has a backlog of $27.7 billion, of which $12.6 billion will be realized over the next 12 months.<\/p>\n At ServiceNow\u2019s analyst day, management outlined its path toward $30 billion in subscription revenue, up from $12.8 billion in 2025, and provided guidance for $15.7 billion in 2026. That growth will be driven by Now Assist, its AI solution, which it expects to reach 30% of annual contract value, up from about 10% this year. Furthermore, it expects to generate a Rule of 40 score above 60 that year, indicating strong operating margin expansion as it scales.<\/p>\n<\/p><\/div>\n The company also aims to reduce stock-based compensation and increase share repurchases, ultimately improving earnings per share after neutral dilution in 2026. The result should be substantial earnings-per-share growth over the next five years.<\/p>\n Even if ServiceNow falls short of its long-term expectations, the stock looks like a bargain right now. It trades for less than 6 times sales expectations for the year and has a forward P\/E ratio<\/a> of just 22. That\u2019s despite expectations for earnings per share to climb at an average rate of 22% over the next two years and a path toward consistent earnings growth through the end of the decade. That makes the stock a great buy after its post-earnings sell-off.<\/p>\n Before you buy stock in ServiceNow, consider this:<\/p>\n The Motley Fool Stock Advisor<\/em> analyst team just identified what they believe are the\u00a010 best stocks<\/a><\/strong> for investors to buy now\u2026 and ServiceNow wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $472,205<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,384,459<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s<\/em> total average return is 999% \u2014 a market-crushing outperformance compared to 208% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor<\/em>, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n See the 10 stocks \u00bb<\/strong><\/a><\/p>\n *Stock Advisor returns as of May 14, 2026. <\/em><\/p>\n Adam Levy<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy<\/a>.<\/em><\/p>\n 1 Incredible Artificial Intelligence (AI) Stock to Buy After Its Post-Earnings Sell-Off<\/a> was originally published by The Motley Fool<\/p>\n<\/p><\/div>\n Software stocks have been under pressure in 2026 amid fears that artificial intelligence (AI) will reduce demand for enterprise software through a combination of agentic task completion and full-on displacement by generative AI-based apps. ServiceNow (NYSE: NOW) — a leading software-as-a-service (SaaS) solution for IT service management, HR, customer service, and more — even admitted … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":31229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-31228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.jubi24.com\/wp-content\/uploads\/2026\/05\/1-Incredible-Artificial-Intelligence-AI-Stock-to-Buy-After-Its.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/31228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31228"}],"version-history":[{"count":1,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/31228\/revisions"}],"predecessor-version":[{"id":31230,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/31228\/revisions\/31230"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/media\/31229"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31228"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Is ServiceNow a good stock to buy right now? <\/h2>\n
Should you buy stock in ServiceNow right now? <\/h2>\n
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