NOW

NOW has had a steep share price decline over the past five years, yet its valuation signals are split, with a Discounted Cash Flow (DCF) intrinsic value estimate suggesting some upside while market based multiples point the other way. NOW has fallen about 78.0% over the past five years, which puts the current share price in the context of a long and deep drawdown for existing holders. The key support for valuation can come from the company’s ability to convert expected revenue into steady cash flows. A main risk is that weaker execution or higher financing needs delay those cash flows and erode equity value. The broader checks lean expensive for NOW, with a low value score of 1 out of 6 suggesting it is not a clear bargain on most measures. The issue now is whether the DCF based intrinsic value estimate or the richer market multiples are giving the better signal on where NOW stock should trade. Compare NOW’s mixed signals with other companies that screen as potentially better value by scanning the hand picked 258 high quality undervalued stocks list. The Discounted Cash Flow (DCF) model estimates what NOW could be worth based on the cash it is expected to generate for shareholders. For NOW, the latest twelve month free cash flow is about ₱46.0 million and the model assumes that free cash flow grows from this base rather than shrinking. On that basis, the 2 Stage Free Cash Flow to Equity approach points to an intrinsic value of about ₱0.52 per share. Compared with the current share price, this implies the stock trades at roughly a 14.1% discount to the DCF estimate. This result indicates that the market may be placing a cautious price on NOW, even though the modeled cash flows support a slightly higher level, and it also reflects the execution and funding risks mentioned earlier. On these DCF assumptions, NOW stock currently appears undervalued. Our Discounted Cash Flow (DCF) analysis suggests NOW is undervalued by 14.1%. Track this in your watchlist or portfolio, or discover 258 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for NOW. The P/E ratio is a useful cross check for NOW because it ties the share price directly to the earnings that equity holders are paying for today. On this measure, NOW trades on a P/E of about 40.7x, which is more than double the broader IT industry average of around 18.8x. It also sits above the peer group average of roughly 36.3x, so investors are paying a premium price for each unit of current earnings. This gap suggests the market places a higher value on NOW than on many IT peers when judged purely on earnings. That may reflect company specific expectations that are not captured in the sector averages, and it also means the margin of safety on this metric looks tight. If you rely heavily on earnings based comparisons, NOW does not screen as a low multiple opportunity relative to its sector. On the P/E yardstick alone, the stock appears expensive compared with both the IT industry and its peer group. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for NOW pick up where this valuation puzzle leaves off by spelling out which expectations for NOW's growth, margins and earnings would need to hold for the stock to be worth significantly more or less than today’s price. Each narrative links a specific fair value estimate to a clear story about the company’s possible catalysts and risks, so you can track over time which version of events appears to be unfolding. If you have a clear, number driven view on where NOW's growth, margins and execution go from here, consider sharing a Narrative to add your voice to the Simply Wall St community. Set out your case on NOW stock today so you can track how it holds up as future results and market reactions unfold. Do you think there's more to the story for NOW? Head over to our Community to see what others are saying! For NOW, the Discounted Cash Flow (DCF) view points to some intrinsic value upside, while the market multiple view signals the stock is overvalued on earnings. That split hinges on whether future cash flows arrive as projected and whether the current P/E premium is justified by execution. Broader valuation checks are weak, so the burden of proof sits with the idea that cash flows will materialise without heavy dilution or delay. The key question from here is whether NOW can convert expected revenue into dependable free cash flow quickly enough for the current price and high earnings multiple to hold. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NOW. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for Vertiv Holdings Co. (VRT). Shares have added about 18.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Vertiv due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Vertiv Holdings delivered second-quarter 2026 adjusted earnings of $1.52 per share, up 60% year over year. The results beat the Zacks Consensus Estimate by 6.29%, supported by higher sales volume, operating productivity and margin expansion.Net sales increased 24.1% year over year to $3.27 billion but missed the consensus estimate by 3.41%. Organic sales rose 18%, while acquisitions and favorable foreign exchange contributed 5% and 1%, respectively. Americas net sales rose 29% year over year to $2.07 billion, with organic growth of 21%. Management said that minor timing shifts tied to temporary supply-chain congestion and multi-phased project execution affected second-quarter revenues, but expects the associated delays to resolve in the second half of 2026.Asia Pacific sales advanced 29% year over year to $720 million, including 26% organic growth. Europe, the Middle East and Africa (EMEA) sales increased 2% year over year to $484 million, while organic sales declined 2%. Vertiv expects strengthening demand and pipeline conversion to return EMEA to organic growth in the second half. Product revenues increased 22.2% year over year to $2.65 billion, accounting for about 81% of total sales. Service revenues climbed 32.9% year over year to $627.6 million, outpacing product growth and reflecting demand across Vertiv's installed infrastructure base.The company highlighted strong global pipeline momentum and expects another year of robust order growth. Management cited accelerating activity in the Americas, improving momentum in EMEA and broad-based strength across APAC. Pricing is expected to remain favorable and exceed inflation in 2026. Selling, general and administrative expenses increased 25% year over year to $494.4 million. Adjusted operating profit surged 51% year over year to $738 million, exceeding the midpoint of guidance by $28 million.Adjusted operating margin expanded 410 basis points to 22.6% and came in 140 basis points above guidance. Operational execution, productivity and favorable price-cost performance drove the improvement, partly offset by tariff impacts and continued investments in capacity and engineering research and development.Americas adjusted operating profit increased 48.6% year over year to $571 million. APAC’s adjusted operating profit surged 61.5% to $96 million, while EMEA’s adjusted operating profit rose 19.2% to $124 million. As of June 30, 2026, cash and cash equivalents were $2.81 billion, $300 million in short-term investments and $2.94 billion in long-term debt. Liquidity totaled $5.6 billion, while net leverage was negative 0.1 times, reflecting a net cash position.Net cash provided by operating activities totaled $1.10 billion compared with $322.9 million a year earlier. Adjusted free cash flow increased 234% to $925 million, aided by higher adjusted operating profit, working-capital efficiency and lower cash interest. Capital expenditures are expected to reach about 4% of 2026 sales, the high end of management's range. Vertiv is expanding manufacturing capacity globally while investing in future power architectures, advanced thermal systems, services and converged infrastructure for next-generation AI data centers.The company is also advancing power systems that support both traditional alternating-current infrastructure and emerging 800-volt direct-current designs. Its thermal portfolio includes closed-loop cooling and fluid-management services intended to reduce ongoing water usage and lower water needs during data-center commissioning. For the third quarter of 2026, Vertiv expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share. Adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%.For 2026, net sales are now forecasted to be in the range of $13.8 billion to $14.2 billion, up $250 million at the midpoint from the prior guidance. Adjusted earnings are projected to be in the range of $6.65 to $6.75 per share, while adjusted operating profit is expected to be between $3.29 billion and $3.37 billion. Adjusted free cash flow guidance was raised to $2.4 billion-$2.6 billion. It turns out, estimates review flatlined during the past month. Currently, Vertiv has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Vertiv has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Vertiv belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, ServiceNow (NOW), has gained 25.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. ServiceNow reported revenues of $3.99 billion in the last reported quarter, representing a year-over-year change of +24%. EPS of $0.90 for the same period compares with $0.82 a year ago. ServiceNow is expected to post earnings of $1.03 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. ServiceNow has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertiv Holdings Co. (VRT) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at ServiceNow (NYSE:NOW) and the best and worst performers in the automation software industry. The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software. The 5 automation software stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 3.8% above. Luckily, automation software stocks have performed well with share prices up 22.5% on average since the latest earnings results. Built on a single code base that processes more than 80 billion workflows and 6.5 trillion transactions annually, ServiceNow (NYSE:NOW) provides a cloud-based platform that helps organizations automate and digitize workflows across departments, from IT and HR to customer service and security. ServiceNow reported revenues of $3.99 billion, up 24% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ annual recurring revenue estimates. Interestingly, the stock is up 36.3% since reporting and currently trades at $130.10. We think ServiceNow is a good business, but is it a buy today? Read our full report here, it’s free. Born from the idea that machines should understand human speech as naturally as people do, SoundHound AI (NASDAQ:SOUN) develops voice recognition and conversational intelligence technology that enables businesses to integrate voice assistants into their products and services. SoundHound AI reported revenues of $61.9 million, up 45% year on year, outperforming analysts’ expectations by 18.1%. The business had an incredible quarter with an impressive beat of analysts’ billings estimates. SoundHound AI scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.8% since reporting. It currently trades at $7.06. Is now the time to buy SoundHound AI? Access our full analysis of the earnings results here, it’s free. With a "Center-out Business Architecture" approach that transcends organizational silos, Pegasystems (NASDAQ:PEGA) develops software that helps organizations automate workflows and use artificial intelligence to improve customer experiences and business processes. Pegasystems reported revenues of $420.7 million, up 9.4% year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ billings estimates. Pegasystems delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 9% since the results and currently trades at $33.73. Read our full analysis of Pegasystems’s results here. Originally named "Micro-soft" for microcomputer software when founded in 1975, Microsoft (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices, and AI solutions for consumers, businesses, and organizations worldwide. Microsoft reported revenues of $90.01 billion, up 17.7% year on year. This number beat analysts’ expectations by 2.6%. It was an exceptional quarter as it also put up a solid beat of analysts’ EPS estimates. The stock is up 27% since reporting and currently trades at $495.97. Read our full, actionable report on Microsoft here, it’s free. Powering billions of transactions daily since its founding in 1999, Appian (NASDAQ:APPN) provides a low-code platform that helps businesses automate complex processes and operationalize artificial intelligence without extensive programming knowledge. Appian reported revenues of $203.3 million, up 19.1% year on year. This print topped analysts’ expectations by 5.1%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance exceeding analysts’ expectations. The stock is up 30.3% since reporting and currently trades at $39.04. Read our full, actionable report on Appian here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Salesforce (NYSE:CRM), a cloud CRM and AI-powered enterprise software provider, closed at $252.10, up 22.60% Thursday. The move followed a strong Q2 earnings beat, raised full-year guidance, and fresh AI partnership momentum. Investors are watching Salesforce's next earnings report and AI-related revenue traction. Trading volume reached 53.3M shares, coming in about 246% above its three-month average of 15.4M shares. Salesforce IPO'd in 2004 and has grown 5,763% since going public. The S&P 500 (SNPINDEX:^GSPC) closed at 7,730, up 0.71%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,541, up 1.57%. Among enterprise software and customer relationship management (CRM) applications peers, ServiceNow (NYSE:NOW) closed at $138.44, up 10.05%, and Workday (NASDAQ:WDAY) closed at $193.57, up 1.48%, reflecting broad enthusiasm for large-cap software after Salesforce's results. Salesforce reported Q2 earnings and soared past Wall Street's expectations as sales and current remaining performance obligations grew 11% and 14%. The company also raised full-year guidance, stating that sales will grow between 11% and 12% this year. However, the news that stole all the headlines was Salesforce's announcement that it was partnering with Anthropic to develop Claudeforce. CEO Marc Benioff explained, "By fusing Claude's extraordinary reasoning with the trusted data, workflows, and governance every enterprise runs on, we're delivering a dynamic interface that thinks, reasons, and acts. This is how every business will run." This certainly quiets some of the fears surrounding a potential SaaS-pocalypse (at least in respect to Salesforce) and could make the CRM leader a true, AI-first behemoth. Even before this partnership, Salesforce grew its agentic workforce units by 97% in Q2 as AI agents continue to tackle a broader array of tasks for its customers. Trading at 16 times free cash flow, Salesforce isn't outrageously priced considering today's interesting developments and steady growth rates, but investors will want to watch this new partnership closely for progress in the upcoming quarters. Before you buy stock in Salesforce, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Salesforce wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,308!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Josh Kohn-Lindquist has positions in ServiceNow. The Motley Fool has positions in and recommends Salesforce, ServiceNow, and Workday. The Motley Fool has a disclosure policy. Stock Market Today, Aug. 27: Salesforce Surges 23% on Anthropic Partnership and Q2 Earnings Beat was originally published by The Motley Fool

Salesforce, Inc. CRM is scheduled to release second-quarter fiscal 2027 results on Aug. 26. For the second quarter, the company expects total revenues between $11.27 billion and $11.35 billion (midpoint at $11.31 billion). The Zacks Consensus Estimate for second-quarter revenues is pegged at $11.32 billion, which indicates an increase of 10.6% from the year-ago quarter’s reported figure. CRM anticipates non-GAAP earnings per share in the band of $3.25-$3.27 for the second quarter. The consensus mark for non-GAAP earnings has remained unchanged at $3.27 over the past 60 days, which suggests a 12.4% jump from the year-ago quarter’s level. Image Source: Zacks Investment Research Salesforce’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.3%. Salesforce, Inc. price-eps-surprise | Salesforce, Inc. Quote Our proven model does not conclusively predict an earnings beat for Salesforce this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. Earnings ESP: Salesforce has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: CRM currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Salesforce appears well-positioned to report decent second-quarter results, driven by its strategic focus on digital transformation and cloud solutions. With businesses globally undergoing digital overhauls, Salesforce's commitment to aligning its product offerings with customer needs is likely to have boosted its revenues for the quarter. The growing demand for generative AI-enabled cloud solutions has been a major catalyst for Salesforce. By embedding generative AI tools across its products, the company not only enhances customer engagement but also strengthens its competitive position in the customer relationship management space. This forward-thinking approach might have significantly contributed to its top-line growth during the to-be-reported quarter. Salesforce’s ability to deepen relationships with leading brands across industries and expand its reach in key geographic markets remains a cornerstone of its growth strategy. The company’s increasing footprint in the public sector is likely to have provided a further boost, unlocking new growth opportunities during the second quarter. The acquisitions of Zoomin Software, Informatica, Cimulate and Momentum have been pivotal in enhancing Salesforce's capabilities and diversifying its revenue base. These additions are likely to have driven higher subscription revenues, particularly across its core cloud services. Disciplined spending may have boosted Salesforce’s profitability in the second quarter. The company’s first-quarter fiscal 2027 non-GAAP operating margin expanded 250 basis points to 34.8%, mainly driven by the benefits of operating leverage and effective cost management. The trend is anticipated to have continued in the to-be-reported quarter as CRM emphasizes productivity gains from the internal adoption of AI tooling. Year to date, Salesforce shares have plunged 21%, underperforming the Zacks Internet – Software industry’s decline of 4.1%. Compared to its peers, CRM stock has also underperformed other enterprise software makers, including Microsoft Corporation MSFT, SAP SE SAP and ServiceNow, Inc. NOW. Year to date, shares of Microsoft, SAP and ServiceNow have declined 0.1%, 10% and 16.1%, respectively. Image Source: Zacks Investment Research Now, let’s look at the value Salesforce offers investors at the current levels. CRM stock is trading at a discount with a forward 12-month P/E of 14.05X compared with the industry’s 27.66X. Image Source: Zacks Investment Research CRM stock also trades at a discounted multiple compared with ServiceNow, Microsoft and SAP. At present, ServiceNow, Microsoft and SAP have P/E multiples of 27.60, 24.16 and 23.99, respectively. Salesforce remains the global leader in customer relationship management, a position it has consistently held, according to Gartner. However, the company is no longer just a customer relationship management software provider. Rather, it is evolving into a full-scale enterprise platform. Salesforce is building a broader enterprise ecosystem centered on AI, data and collaboration. Acquisitions like Slack and Informatica highlight this ambition, while smaller AI-focused deals such as Fin and Zoomin Software show management’s urgency in staying ahead of the curve. AI is now central to Salesforce’s growth story. Salesforce has been embedding generative AI across its offerings to help companies automate processes, improve decision-making and strengthen customer relationships. Its latest innovation, Agentforce, is gaining momentum. Combined AI and Data, including Agentforce, Data 360 and Informatica Cloud, annual recurring revenues (ARR) reached $3.4 billion in the first quarter of fiscal 2027, more than tripling from the year-ago period. Agentforce alone generated $1.2 billion in recurring revenues, up 205% year over year. Nearly half of Agentforce and Data 360 bookings came from existing customers, showing Salesforce’s success in cross-selling AI features to its user base. Salesforce’s leadership in customer relationship management and aggressive AI expansion creates a solid foundation for sustained growth. Its ability to deliver earnings growth despite ongoing macroeconomic uncertainties makes the stock worth holding. An impressive earnings surprise history and a lower valuation multiple than the industry also suggest staying invested in CRM stock. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce, Inc. (CRM) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for ServiceNow (NOW). Shares have added about 41.1% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ServiceNow due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts. ServiceNow reported second-quarter 2026 earnings of 90 cents per share, up 11.1% year over year. The figure beat the Zacks Consensus Estimate by 4.65%. Revenues of $3.99 billion rose 24% year over year and surpassed the consensus mark by 1.65%. Results benefited from strong subscription demand, while current remaining performance obligations (cRPO) reached $13.20 billion. Subscription revenues increased 24.5% year over year to $3.88 billion. At constant currency (cc), subscription revenues rose 23%, 150 basis points (bps) above the high end of management’s guidance. Professional services and other revenues advanced 8.5% to $110 million. ServiceNow attributed the subscription outperformance to stronger net new annual contract value (NNACV) and a higher on-premise revenue mix, primarily from U.S. federal demand that shifted some revenues from the third quarter into the second quarter. In the second quarter of 2026, cRPO, or contracted revenues expected to be recognized within 12 months, grew 21% year over year. At cc, the metric increased 21.5%, exceeding guidance by 200 bps. Total remaining performance obligations (RPO) rose 21% year over year to $29 billion, or 22% at cc.NOW recorded 123 transactions exceeding $1 million in NNACV, up nearly 40% year over year. The company ended the quarter with 658 customers generating more than $5 million in annual contract value, an increase of roughly 23%. ServiceNow AI annual contract value crossed $1 billion. Net new AI annual contract value grew more than 40% sequentially, while deals containing at least five ServiceNow AI products increased 5.5 times year over year. The number of customers with Agentic AI in production expanded ninefold over the past nine months.Demand was broad across workflows. ITSM appeared in 15 of the top 20 deals, ITOM in 18 and security and risk solutions in 16. CRM and industry workflows were also included in 16 of the top 20 deals, supported by momentum in configure-price-quote and sales and order management. Non-GAAP total gross margin was 78%, down from 81% a year earlier. Subscription gross margin contracted 250 bps to 80.5%. Non-GAAP operating income rose 22.8% year over year to $1.17 billion. Operating margin was unchanged at 29.5% and came in 300 bps above guidance due to revenue outperformance and the timing of spending, mainly in marketing. ServiceNow ended the second quarter of 2026 with $2.50 billion in cash and cash equivalents. Current and long-term marketable securities totaled $4.20 billion. Net cash provided by operating activities was $587 million, compared with $716 million in the year-ago quarter. Free cash flow increased to $634 million from $535 million, while free cash flow margin slipped 50 bps to 16%. For the third quarter of 2026, NOW expects subscription revenues between $3.975 billion and $3.980 billion, implying 20.5% year-over-year growth and 20% growth at cc. cRPOs are projected to increase 19.5%, or 20% at cc. Non-GAAP operating margin is expected to be 31%.For 2026, ServiceNow raised its subscription revenue guidance to $15.76-$15.78 billion from $15.735-$15.775 billion. The midpoint increased by $15 million. The updated range represents 22.5% year-over-year growth and 21% growth at cc.The company continues to expect an 81% non-GAAP subscription gross margin, a 31.5% non-GAAP operating margin and a 35% free cash flow margin for 2026. ServiceNow noted that stronger AI adoption and greater use of hyperscaler partnerships are reflected in the gross-margin outlook. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.01% due to these changes. At this time, ServiceNow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise ServiceNow has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Its operating margin is a fraction of the market's while its net margin sits above the market's, which is where the earnings comparison stops being about the business. UiPath (PATH) stock has climbed 52.4% over the trailing three months against 4.6% for the S&P 500, and trades at about $15.30 a share. On earnings it looks unremarkable, at 24.4 times against 23.8 for the market. That is the least informative comparison here. Its Earnings Multiple Is Not Measuring Its Operations UiPath runs a 6.0% operating margin against 18.4% for the S&P 500, and yet reports a net margin of 19.6% against the market's 13.1%. Earnings that large do not come out of an operating line that thin: the gap opens up below the operating line, and that is why the earnings multiple looks ordinary. Priced on sales, the premium is plain at 4.8 times against 3.3 for the index, on $1.7 billion of revenue over the trailing twelve months. On operating cash flow the premium is narrower, at 20.8 times against 15.6 for the index. The Sales Premium Is A Bet On Process Orchestration What the company sells has changed. It grew up on deterministic robots that repeat one task the same way every time; what it leads with now is process orchestration, software that sequences agents, automations, systems and people through a whole workflow. Maestro Case, in public preview, pushes that into exception-heavy work with no fixed path, and its UiPath for coding agents product targets what management says nearly every customer conversation surfaces: an automation backlog growing faster than customers can build and maintain. Revenue has grown at an average annual rate of 15.1% over the last three years against 5.9% for the S&P 500. Growth alongside margins earned in the operation is one of the things the Trefis High Quality Portfolio insists on in its holdings, and it is the second half of that pairing that is still missing here. Its Recurring Base Is Compounding Slower Than Its Revenue The counter is in the recurring line. Annual recurring revenue reached $1.901 billion in fiscal Q1 2027, up 12% year over year, while reported revenue grew 17.3%, and ARR rather than the reported line is the rate a subscription platform actually compounds at. Management's answer is that on a trailing twelve-month basis revenue growth is 15% against ARR's 12%. Asked to size the ARR coming from the AI products the case rests on, management said only that it would disclose product ARR periodically. The downside record is part of the counter: the stock fell 75% during the 2022 inflation shock against a 24% drop for the S&P 500, and remains about 65% below its pre-crisis high. What The September Report Has To Show UiPath reports fiscal Q2 2027 results on September 3. Two lines matter most: whether ARR growth closes on revenue growth, and whether GAAP operating income builds on the $28 million posted in fiscal Q1 2027, up from a $16 million operating loss a year earlier. Get both and the premium becomes a claim about the operation rather than the platform story. Miss both, with the operating margin still near 6.0%, and the multiple that made the stock look market-priced goes on measuring something other than the business. Rather than judge that on a single number, a scorecard that grades a company across five factors keeps the whole picture in front of you. One Contested Platform Bet Is A Narrow Way To Own Software Deciding on PATH means picking a side in an argument a single quarter's results will not close. The Trefis High Quality Portfolio takes the other route, holding a group of quality businesses rather than resolving a single company's debate. That portfolio has a track record of outpacing the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.

Interested in Rimini Street, Inc.? Here are five stocks we like better. Second-quarter revenue rose 6.7% to $111.1 million, while adjusted revenue excluding winding-down PeopleSoft products increased 10% year over year. The company reiterated its full-year 2026 forecast for 4%–6% revenue growth and a 12.5%–15.5% adjusted EBITDA margin. Profitability was pressured by higher sales and marketing investment: adjusted EBITDA fell to $10.5 million from $14 million a year earlier, while billings declined 8.8% due partly to customer-renewal timing. Rimini Street ended the quarter with $123.4 million in cash and reduced debt to $48.4 million. Rimini Street is expanding its AI strategy with the launch of Rimini Govern for AI, alongside its Agentic UX and AgentWorks offerings. The company reported double-digit pipeline growth, 58 new customer logos in the quarter and continued progress with ServiceNow-related AI projects. Rimini Street (NASDAQ:RMNI) reported second-quarter revenue growth and reiterated its full-year outlook, citing demand for its core support offerings, expansion of its enterprise software services portfolio and progress in selling AI-focused solutions. Revenue for the quarter ended June 30 was $111.1 million, up 6.7% from a year earlier. Excluding PeopleSoft products, which the company is winding down, adjusted revenue grew 10% year over year, Chief Financial Officer Michael Perica said. Annualized recurring revenue excluding PeopleSoft rose 8.1% to $401.1 million. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now The company reported net income attributable to shareholders of $2.4 million, or $0.03 per diluted share, compared with $0.32 per diluted share in the prior-year period. The prior-year result included a $37.9 million one-time pre-tax gain related to the Oracle settlement. On a non-GAAP basis, net income was $5.9 million, or $0.06 per diluted share, compared with $0.08 per diluted share a year earlier. Adjusted EBITDA was $10.5 million, representing 9.5% of revenue, down from $14 million, or 13.4% of revenue, in the second quarter of 2025. Gross margin improved to 60.9%, compared with 60.4% a year earlier and 59% in the first quarter. Non-GAAP gross margin was 61.3%. → Microsoft Just Flipped the AI Spending Narrative Overnight Sales and marketing expense rose to 38.5% of revenue from 36.5% a year earlier, reflecting investments in the go-to-market effort for expanded and new service offerings. Perica said the company is investing in AI-driven offerings while streamlining global operations for scale and efficiency. Second-quarter billings declined 8.8% year over year to $100.9 million. Excluding PeopleSoft-related support billings, billings declined 8%. Perica attributed the quarterly decline in part to timing differences related to customer renewals, noting that first-half billings increased 3.2%, or 4.7% excluding PeopleSoft products. → Carrier Earnings Could Send the Stock to a New All-Time High The company ended the quarter with $123.4 million in cash, up from $101.3 million a year earlier, and reduced outstanding debt to $48.4 million after prepaying $10 million during the quarter. Year-to-date operating cash flow was $22.9 million, representing 118% cash-flow conversion, according to the company. Deferred revenue rose to $267.1 million from $262.9 million a year ago. Remaining performance obligations increased 8% to $636.9 million, while adjusted RPO excluding PeopleSoft support increased 8.8%. Chief Executive Officer Seth Ravin said Rimini Street closed 14 new customer transactions with total contract value exceeding $1 million during the quarter, totaling $30 million, and added 58 new logos. In the first half, the company closed 25 transactions above $1 million in TCV totaling $62.9 million and added 108 new logos. The revenue retention rate for service subscriptions was 90%. Subscriptions represented 93% of total revenue, with approximately 84% of subscription revenue non-cancellable for at least 12 months. Ravin said the company’s pipeline had grown by double digits year over year and that its pipeline close rate was approximately 30%. He also said partnerships and alliances assisted in closing a meaningful number of quarterly sales transactions, although he did not quantify the contribution. On sales hiring, Ravin said the company is increasing its total seller count while adjusting the skills it seeks in sales representatives as its offerings increasingly involve AI and technology discussions. The company has also added sales support and AI support capabilities, he said. Ravin said the company’s Americas organization has adopted a split model in which “hunters” focus on new-logo acquisition and “farmers” manage existing accounts, cross-selling and renewals. He said the approach has produced significant growth in new-logo acquisition in North America. The company announced the immediate availability of Rimini Govern for AI, a governance-as-a-service offering intended to provide oversight, control, visibility and measurement for AI agent activity. Ravin said the offering joins Rimini Agentic UX, an AI-driven experience and automation layer, and Rimini AgentWorks, a service for designing, testing and deploying AI agents and workflows. Ravin said organizations are using savings from switching to Rimini Street maintenance and avoiding ERP upgrades or migrations to fund AI deployments within existing IT budgets. He said the company is also using AI internally in sales, finance and pipeline management, including tools that help sales representatives gather prospect information and assess close rates. While he did not quantify potential savings, Ravin said he expects AI use to produce a “meaningful reduction in total operating cost and more leverage” over coming years. Regarding its ServiceNow relationship, Ravin said several clients testing the company’s Agentic AI ERP solution have moved into production and that some are pursuing additional projects. He said Rimini Street and ServiceNow share more than 1,000 customers, creating opportunities to expand their respective footprints. For the third quarter, Rimini Street expects revenue of $110 million to $112 million. The company reiterated its full-year 2026 forecast for revenue growth of 4% to 6% and adjusted EBITDA margin of 12.5% to 15.5%, which it said is consistent with its goal of achieving a Rule of 20 result for the year. PeopleSoft support revenue represented 3% of total revenue in the quarter, down from 6% a year earlier and 8% when the transition began in 2024. The company said it remains on track to complete the PeopleSoft support-services wind-down by July 2028. Rimini Street, Inc (NASDAQ: RMNI) is a provider of enterprise software support services, specializing in third-party maintenance for mission-critical applications from leading technology vendors. The company offers comprehensive support for ERP, CRM and database environments, with coverage for systems from providers such as Oracle and SAP. Through its proactive system monitoring, performance tuning, regulatory and tax update services, Rimini Street aims to extend the lifecycle of enterprise applications while delivering service levels comparable to or exceeding those of original software vendors. Founded in 2005 by technology entrepreneur Seth Ravin, Rimini Street has grown from a startup into a publicly traded company following its initial public offering in March 2018. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rimini Street Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Release Date: July 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TeamViewer SE (TMVWF) reported a strong adjusted EBITDA margin of 43.2%, demonstrating financial discipline. The company saw a significant improvement in enterprise momentum, driven by the DEX turnaround and the adoption of TeamViewer One. TeamViewer SE (TMVWF) formed a strategic partnership with ServiceNow, enhancing its market position and expanding customer reach. The company received external recognition from industry analysts, reinforcing its leadership in digital employee experience management tools. TeamViewer SE (TMVWF) achieved a milestone with FedRAMP in progress designation, opening access to the US federal market. Revenue was down 1.4% year-over-year in constant currency, reflecting ongoing headwinds. SMB ARR remained under pressure, down 4% year-over-year in constant currency. Free cash flow conversion was lower at 52%, impacted by fewer upfront payments on multi-year deals. The company faced a 5.4 percentage point FX headwind affecting adjusted EBITDA. There is a cautious spending environment, likely due to macroeconomic uncertainties, affecting customer decision-making. Warning! GuruFocus has detected 3 Warning Signs with TMVWF. Is TMVWF fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide some insight into the guidance range for H2, and what factors might influence whether you land at the higher or lower end? Additionally, what are the expected benefits from the ServiceNow partnership and the growth in AI adoption? A: Michael Wilkins, CFO: It's too early to pinpoint an exact landing within the 0-3% guidance range. Key drivers include improving trends in SMB, particularly in the upper end, and strong demand for AI capabilities. On the enterprise side, TeamViewer One adoption and large deals are crucial. The ServiceNow partnership is expected to significantly expand our customer reach, though immediate ARR impact is unlikely due to typical enterprise sales cycles. AI adoption is growing rapidly, with a significant increase in first-time users, and we expect this trend to continue across all segments. Q: Can you elaborate on the weakness in SMB ARR and the competitive environment? Do you expect the lower SMB bucket to remain a drag in H2? A: Michael Wilkins, CFO: SMB ARR showed signs of stabilization in Q2, with churn improving. The lower end of SMB, with licenses between EUR200-300, faces competition and less interest in AI features. However, the upper segments show accelerating interest in AI, contributing to stabilization. The competitive landscape remains unchanged, but our TeamViewer One offering is strengthening our position. Q: How does the enterprise pipeline look, and what level of pipeline conversion are you expecting for the rest of the year? A: Mark Banfield, CRO: The pipeline is strong, driven by the unique value proposition of TeamViewer One, which combines remote access with DEX capabilities. AI deployment is a major tailwind, as enterprises seek control over AI proliferation. Our go-to-market strategy focuses on platform selling and solution sales, which is enhancing pipeline development and conversion expectations. Q: How is selling more on endpoints and platform adoption impacting enterprise ARPU? Can you provide some color on deal sizes and contract structures? A: Mark Banfield, CRO: Migrating and upselling to the platform results in higher endpoint prices, with varying levels of uplift depending on the sales situation. The combination of DEX and Tensor in TeamViewer One allows us to offer different outcomes to customers, supporting better pricing over time. Oliver Steil, CEO, added that endpoint-based pricing typically results in significantly larger deal sizes. Q: What are your expectations for free cash flow conversion in the second half, considering the lower upfront contribution from multi-year deals? A: Michael Wilkins, CFO: We expect cash flow to improve in H2, driven by easing macro conditions and technical delays in payments being resolved. We aim for a cash conversion rate around 60%, while continuing to invest in growth. Our net debt leverage ratio target of around 2.3 by year-end remains on track. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Navitas Semiconductor (NASDAQ:NVTS) designs and develops advanced power integrated circuits, silicon carbide devices, and digital isolators for various enterprise and consumer applications. It recently entered a technical collaboration within the Nvidia ecosystem to develop data center power solutions, and it reported a -393% net income margin for the quarter ended March 31, 2026. ServiceNow (NYSE:NOW) delivers cloud-based software solutions that help large organizations streamline, automate, and manage digital workflows across their enterprise operations. It introduced new digital oversight tools and expanded partnership agreements at its annual conference, while reporting 8% net income margin for the quarter ended June 30, 2026. Revenue helps investors gauge the total amount of money a business brings in before any operating expenses or taxes are deducted. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory. Data source: Company filings. Data as of July 24, 2026. A look at the revenue trends for Navitas and ServiceNow reveal two companies headed in opposite directions. The former is seeing a self-inflicted decline in sales while the latter is generating quarter-over-quarter growth, an impressive feat to maintain consistently over time. Navitas’ revenue underwent a substantial drop over the past several quarters because the company decided to exit its mobile and consumer businesses in China last year to focus on artificial intelligence. The China market was responsible for 60% of sales in 2024. Navitas management expects the fourth quarter of 2025 to be the low point, and that revenue will rebound from there. That appears to be the case given the increase to $8.6 million in Q1. The company reports Q2 results on July 27, where it will need to continue demonstrating quarterly sales growth for its AI pivot to garner investor confidence. ServiceNow shares were hit hard earlier in 2026, dropping to a 52-week low of $81.24 in April, as Wall Street feared AI would take business away, leading to a sector-wide sell-off in software-as-a-service (SaaS) stocks. However, ServiceNow’s sales trend reveals business continues to expand. The company’s $4 billion in Q2 sales represented strong 24% year-over-year growth, leading to ServiceNow raising full-year guidance for its subscription income. Due to another outstanding quarter, ServiceNow shares are hovering around $100, showing signs of a rebound. Before you buy stock in Navitas Semiconductor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Navitas Semiconductor wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!* Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 24, 2026. Robert Izquierdo has positions in Nvidia and ServiceNow. The Motley Fool has positions in and recommends Nvidia and ServiceNow. The Motley Fool has a disclosure policy. Navitas Semiconductor vs. ServiceNow: What Recent Quarterly Revenue Trends Tell Investors About These Tech Companies was originally published by The Motley Fool