What are market fears about ServiceNow?

Investors fear that AI agents could replace traditional workflow software, hurting ServiceNow's business.

How does ServiceNow respond to these fears?

The company's strong financial results show sustained demand, contradicting the idea that AI will kill its business.

ServiceNow Was the SaaS Stock AI Was Supposed to Kill. Its Numbers Say Otherwise.

Many analysts believe ServiceNow (NYSE:NOW) is mispriced, as market fears that AI agents would kill enterprise workflow software are increasingly disconnected from the company's actual performance.

July 6, 2026

1 min read

Source: 24/7 Wall St.

Many analysts now believe ServiceNow (NYSE:NOW) is mispriced. The market's fear that AI agents would gut enterprise workflow software looks increasingly disconnected from what the company keeps reporting.

Details

ServiceNow is the workflow platform that large enterprises use to run IT, HR, customer service, security, and CRM. Under CEO Bill McDermott, the company has dominated this space for a decade. Its recent financial results continue to show strong demand.

Context

As AI agents gain prominence, some investors worry they could replace traditional enterprise software. However, ServiceNow's numbers suggest otherwise, with sustained growth and customer adoption.

What This Means for Investors

Investors should focus on ServiceNow's actual financial performance rather than speculative fears about AI disruption. The stock may be undervalued given the company's ongoing growth trajectory.

Frequently Asked Questions

Some analysts believe the stock is mispriced due to overblown fears about AI disruption.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.