$NOW up ~40% since this post.
A $90B AI infrastructure leader just got cut in half.
ServiceNow beat and raised every metric, lifted its AI revenue target by 50%, and trades at roughly 18x FY27 earnings.
Everyone is terrified that AI will kill software. That misses the role ServiceNow is building: the AI control tower that sells agentic workflows to the enterprise.
The market is pricing software disruption. It is not pricing the operating layer that governs agents, data, and workflows across the enterprise. That gap is the thesis.
This is not a cheap software trade. It is a bet that the control plane captures value as AI moves from demos into production.