Polen Capital: ServiceNow (NOW) an Attractive Investment Amid Volatility

Polen Capital, an investment management firm, highlighted ServiceNow (NOW) as an attractive investment opportunity in its Q1 2026 investor letter for the "Polen Focus Growth Strategy." The recommendation comes amid high volatility in US equities due to AI disruption concerns and the US-Israel conflict in Iran and the Middle East.

Recommendation Change

Polen Capital did not explicitly change its rating but emphasized ServiceNow as a key holding within the portfolio.

Analyst Rationale

Polen Capital cited the following reasons for ServiceNow's attractiveness:

• Strong business model: ServiceNow provides workflow automation and digital services that are increasingly critical in the AI era.
• Stable demand: Even amid economic uncertainty, the need for operational efficiency remains robust.
• Resilience to geopolitical risks: Despite the Middle East conflict's impact on markets, ServiceNow has maintained its performance.

Context

The first quarter of 2026 saw sharp volatility in US markets, driven by AI disruption fears and the US-Israel conflict in Iran and the Middle East. In this environment, asset managers like Polen Capital seek stocks with strong fundamentals.

What to Make of It

Polen Capital's view reflects confidence in ServiceNow's ability to navigate economic and geopolitical challenges. However, investors should weigh market volatility risks before making decisions.