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ServiceNow is deepening its tie with LTM to help customers deploy agentic AI, which is software that can take actions on its own rather than just answering questions. The partnership combines ServiceNow’s platform with LTM’s engineering help to speed up how quickly companies can start using these tools.
This matters because ServiceNow has set a high target of $1.7 billion in new AI-related contracts this year. Since setting up autonomous agents is technically difficult for most businesses, having a partner like LTM to handle the setup is key to hitting those growth goals and justifying the premium prices ServiceNow charges for AI features.
Source: Business Wire
Broward County has launched ServiceNow's IT management and data tools to handle service requests and internal workflows. This win shows the company's ability to move beyond corporate offices and into the public sector, where government agencies are looking to digitize messy manual processes. While a single county contract is small for a company of this size, it supports the goal of becoming the standard operating system for all types of large organizations. If ServiceNow can prove it saves taxpayer money through better efficiency, it opens a wider path for more local government deals.
Source: Business Wire
Keysight Technologies has adopted ServiceNow’s sales software to automate how it builds and prices complex product configurations. By moving away from manual quoting, the firm reduced its processing time and the effort needed to maintain its product catalog. This is a good example of ServiceNow successfully selling more than just IT support. By moving into sales and digital commerce tools, the company makes itself more essential to its customers' daily operations, which helps maintain its high 98 percent renewal rate.
Source: Business Wire
The National Basketball Association is expanding its use of ServiceNow by adopting EmployeeWorks, a tool that lets staff handle workplace requests and onboarding in one place. This builds on the NBA's existing relationship with the company. While a single partnership like this does not change the stock's value, it is a clear example of how ServiceNow grows by selling more specialized tools to its current customers.
Source: Business Wire
The stock dropped significantly after the company reported mixed results for the third quarter. While sales for its software subscriptions beat expectations, the actual profit earned was lower than analysts had hoped to see.
This reaction looks like a reset of high expectations rather than a change in the company's health. The core business of automating office tasks is still growing at about 21 percent, and the drop has brought the price well below what many analysts believe the business is worth over the long run.
Source: Market Watch
Management has a long history of setting a bar they can easily clear, with seven beats in the last eight quarters. The recent small miss suggests they are finally feeling the strain of their own fast growth.
| Expectation | |
|---|---|
| EPS | $1.08 |
| Revenue | $4.37B |