ServiceNow: This Selloff Is A Gift

Amrita RoyInvesting GroupFollow5ShareSavePlay(11min)CommentsSummaryServiceNow remains a high-conviction buy for 2026, with a reiterated price target of $1,183, representing 55% upside from current levels.NOW's Q3 FY25 results exceeded expectations, with strong enterprise customer momentum and cRPO growth, supporting robust forward revenue and margin projections.Concerns over the potential $7B Armis acquisition center on steep valuation, financing risks, and possible margin compression, but strategic fit is compelling for AI platform ambitions.I view the potential Armis deal as accretive to NOW's AI control tower vision, with no fundamental change to long-term targets or management's operational credibility. Nicolae Popescu/iStock via Getty Images Introduction & Investment Thesis Last month, when I wrote on ServiceNow (NOW), I said that I planned to make the stock 5% of my portfolio weight in The Pragmatic Optimist portfolio that IThis article was written byAmrita Roy5.39K FollowersFollowAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for the family fund. The fund's objective is to invest capital in sustainable, growth-driven companies that maximize shareholder equity by meeting their growth-oriented goals. In addition, she also started her own award-winning newsletter, The Pragmatic Optimist which focuses on portfolio strategy, valuation, and macroeconomics in concert with her husband Uttam Dey who is also a contributor on Seeking Alpha. Prior to cofounding her fund, Amrita worked for 5 years in high-growth supply-chain start-ups in downtown San Francisco, where she led strategy. During her time in the Bay Area, she also worked with venture capital firms and start-ups, where her efforts led her to grow the user acquisition business. During this time, she was introduced to investment portfolios and was able to maximize returns for clients during the pandemic. The cornerstone of Amritas work rests on democratizing financial literacy for everyone and breaking down financial jargon and complex macroeconomic concepts into formats that are easily digestible but more empowering than the typical investment thesis. Her newsletter has been featured as the Top Newsletter in Finance on popular newsletter platforms and she aims to bring her ideas to Seeking Alpha as well.Analyst’s Disclosure:I/we have a beneficial long position in the shares of NOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.