Key Factors
Ahead inventory splits are a terrific alternative for particular person buyers to purchase entire shares of shares that beforehand could have appeared out of their value vary. For instance, a inventory buying and selling at $2,000 per share could be obtainable for $200 per share after a 10-for-1 ahead inventory break up.
ServiceNow (NYSE: NOW) was one among a number of high-profile inventory splits in 2025. After a 5-for-1 ahead inventory break up in December, the inventory now trades round $138 per share, as of this writing. This is why that could possibly be a golden alternative to scoop up shares of an enterprise software program supplier that is poised to soar.
The place to speculate $1,000 proper now? Our analyst staff simply revealed what they consider are the 10 greatest shares to purchase proper now, once you be a part of Inventory Advisor. See the shares »
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ServiceNow is placing AI to work
ServiceNow supplies a cloud-based platform that helps giant organizations automate workflows and streamline operations throughout IT, customer support, HR, finance, and safety. Some 8,400 world clients use ServiceNow’s AI-powered software program platform, together with over 85% of the Fortune 500.
“Distinctive” and “gorgeous” have been two of the superlatives administration used to explain ServiceNow’s third quarter.Complete income on a typically accepted accounting rules (GAAP) foundation grew 22% to $3.4 billion. The majority of that income got here from subscriptions, which elevated 21.5%, in comparison with the year-ago interval, exceeding the excessive finish of the corporate’s steerage.
As companies implement varied synthetic intelligence (AI) instruments to drive productiveness and effectivity features, ServiceNow’s AI-enabled platform can combine and orchestrate these instruments, very like a management tower. In line with CEO Invoice McDermott, corporations in each trade are clamoring for this “real-time AI management tower.” As of Q3, the corporate’s AI merchandise have been on tempo to generate greater than $500 million in annual contract worth for 2025, marking vital progress towards its $1 billion AI goal for 2026.
Enterprise IT spending on AI merchandise is projected to achieve $1.3 trillion by 2029, and companies want ServiceNow’s software program to seamlessly combine these AI instruments into their day by day operations. At a ahead price-to-earnings ratio (P/E) of 33.9, ServiceNow is not precisely low-cost. Nevertheless, if enterprise AI adoption continues to soar, ServiceNow’s progress story could possibly be within the early innings.
Do you have to purchase inventory in ServiceNow proper now?
Before you purchase inventory in ServiceNow, contemplate this:
The Motley Idiot Inventory Advisor analyst staff simply recognized what they consider are the 10 greatest shares for buyers to purchase now… and ServiceNow wasn’t one among them. The ten shares that made the lower might produce monster returns within the coming years.
Think about when Netflix made this record on December 17, 2004… for those who invested $1,000 on the time of our advice, you’d have $474,847!* Or when Nvidia made this record on April 15, 2005… for those who invested $1,000 on the time of our advice, you’d have $1,146,655!*
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See the ten shares »
*Inventory Advisor returns as of January 16, 2026.
Josh Cable has positions in ServiceNow. The Motley Idiot has positions in and recommends ServiceNow. The Motley Idiot has a disclosure coverage.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
