Should I buy ServiceNow stock in 2025? A Philippine Perspective

What is ServiceNow?

How much is ServiceNow stock?

The price of ServiceNow stock is rising this week. ServiceNow (NYSE: NOW) is currently trading at $1,025.00, up $20.63 (+2.05%) in the past 24 hours, but down -3.44% over the past week. The company holds a market capitalization of $207.89 billion, with an average 3-month trading volume of around 1.89 million shares.

Our full analysis on ServiceNow stock

In reviewing ServiceNow’s (NYSE: NOW) latest quarterly financial disclosures alongside its impressive three-year price evolution, our proprietary algorithms have synthesized a wide spectrum of analytical data—including advanced technical overlays, financial metrics, sector momentum, and competitive benchmarking. The result: a nuanced and high-conviction perspective on a stock at the forefront of enterprise software innovation. So, why might ServiceNow stock once again become a strategic entry point into the global technology sector for disciplined investors as we approach 2025?

Recent Performance and Market Context

ServiceNow’s share price has navigated a dynamic landscape over the past year, closing at $1,025 as of May 27, 2025. The stock has rallied an impressive 36% in the last twelve months, outperforming the broader technology sector, even as it experienced a 5.3% pullback over six months—primarily reflecting short-term profit-taking after historic highs. Notably, the recent month has delivered a robust +6.25% surge following positive earnings and strategic AI announcements, while the past week’s mild -3.44% retracement suggests healthy consolidation rather than a bearish reversal.

Macroeconomic conditions demonstrate resilience for digital transformation providers: global enterprises continue to prioritize cloud-based workflow automation, and secular investment in AI remains on an upward trajectory. With the Philippine digital economy rapidly maturing and local enterprises accelerating cloud adoption, ServiceNow’s platform is increasingly relevant to businesses seeking operational efficiency and innovation.

Recent milestones, such as the addition of new Fortune 500 clients and key AI-powered offerings, have fortified investor confidence and served as tailwinds for the stock. Furthermore, the company’s expansion into AI-driven digital automation positions it squarely along the most compelling tech growth vectors—solidifying ServiceNow’s appeal both domestically and globally.

Technical Analysis

A deep dive into ServiceNow’s charts reveals a technical structure that appears highly supportive of further upside. Currently, the share price is not only above its short-, medium-, and long-term moving averages (20-SMA: $994.44, 50-SMA: $885.35, 100-SMA: $942.34, 200-SMA: $946.76), but also displaying clear bullish momentum as confirmed by multiple technical indicators:

• MACD: Bullish cross at 39.30, actively supporting a buy signal.
• RSI (14): At 60.54, the reading remains comfortably away from overbought, indicating breathing room for further advances.
• ADX (14): At 35.28, underscores a robust trend strength.
• Bull Flag Pattern: Suggests further upward continuation is statistically favored.

Key support sits between $994.44–$1,004.36, providing a potential safety net for new positions, while short-term resistance is just overhead between $1,023.70 and $1,040.19. In the event of breakout confirmation, the next notable upside marker is $1,124.99—suggesting substantial headroom for momentum-oriented buyers.

This technical tableau, marked by strong trend consistency and recent healthy consolidation, sharply distinguishes ServiceNow as a technology leader attracting sustained buying interest.

Fundamental Analysis

From a fundamental perspective, ServiceNow’s growth engine remains unmatched within its peer group. For Q1 2025, subscription revenues soared 19% year-over-year to $3.0 billion, with total revenue up 18.5%—notably ahead of peers and consensus estimates. Moreover, the company’s cRPOs (Current Remaining Performance Obligations) climbed 22%, while overall RPOs advanced 25%, providing high visibility into forward revenues.

Margins are industry-leading: non-GAAP subscription gross margin stands at a remarkable 83.5%, with operating margin at 30.5% and free cash flow margin at 32%. These figures not only demonstrate strong operational leverage but also provide ongoing flexibility for reinvestment in R&D and strategic M&A.

While ServiceNow’s valuation metrics—P/E of 139.18 trailing, 50.59 forward, and P/S of 17.17—are elevated relative to most market comparables, they remain justified by the consistency and magnitude of revenue expansion, a high-quality recurring revenue model, and market-wide recognition of its innovation premium. The company’s successful AI integration, ongoing expansion within the ITSM (IT Service Management) and ITOM (IT Operations Management) spheres, plus recent entry into AI-powered CRM, reinforce its competitive moat.

Structural advantages include:

• A robust, sticky customer base (now >500 customers with $5 million+ ACV).
• A pioneering position in workflow automation and enterprise digitization.
• Ongoing strategic partnerships and acquisitions bolstering its brand and future-proofing its platform.

ServiceNow’s durable fundamental strengths continue to attract renewed investor interest, especially as the tech sector pivots towards workflow automation and AI-enabled solutions.

Volume and Liquidity

Liquidity remains stellar: with an average daily trading volume of 1.89 million shares and a market capitalization above $207B, ServiceNow is a mainstay among global institutional investors. Sustained high volume—in tandem with the recent price uptrend—signals robust market confidence and ensures that the stock is readily tradable at tight spreads, a key consideration for both retail and institutional participants in the PH market.

The favorable float and liquidity dynamics support ServiceNow’s dynamic valuation and ensure it is both accessible and relevant for a wide range of portfolios, from tactical traders to long-term investors seeking exposure to best-in-class technology disruptors.

Catalysts and Positive Outlook

Looking ahead, several potent drivers underpin ServiceNow’s compelling outlook:

• Breakthrough AI Integration: Continued expansion into agentic AI and autonomous workflow automation, including the pending acquisition of Moveworks and Logik.ai, which will enhance both customer experience and operational scalability.
• Strategic Partnerships: Alliances with NVIDIA (accelerating AI transformation), Vodafone Business, and other industry leaders augment ServiceNow’s global reach and technological edge.
• Sector Tailwinds: The global acceleration toward digital transformation, especially in Asia-Pacific, strengthens the addressable market for ServiceNow’s solutions amid rising demand for efficiency and AI-powered business processes.
• Customer Expansion: Heightened penetration among large enterprises and strong multi-year RPO growth ensure future revenue stability.
• Innovation Recognition: ServiceNow’s consistent placement among the world’s most admired software brands underscores its attractiveness to both new and existing clients.

With Wall Street analysts recently raising price targets (BMO Capital now at $1,150) and consensus remaining overwhelmingly positive, the company appears poised to enter a new bullish chapter—potentially catalyzed by successful AI rollouts and accelerating enterprise adoption.

Investment Strategies

Now appears to represent an excellent opportunity for strategic investors seeking exposure to global software and AI-driven growth.

• Short-term: The recent consolidation below $1,040 and strong technical setup suggest the possibility of a pronounced upward move following any breakout above resistance, especially if upcoming product announcements or M&A activity catalyze momentum.
• Medium-term: ServiceNow’s strong pipeline, expanding AI initiatives, and successive upward revisions in analyst price targets create a supportive backdrop for holding positions through potential volatility. Momentum traders may look to enter near current support zones ($994.44–$1,004.36), with risk management against the established trendlines.
• Long-term: For Philippine investors building globally diversified portfolios, ServiceNow remains a prime candidate for secular technology exposure. The company’s powerful R&D engine, high recurring revenues, and proven execution reinforce its status as a market leader. With digital transformation spending set to accelerate in the region, ServiceNow offers an attractive vehicle for benefiting from the ongoing enterprise digitization megatrend.

Positioning ahead of further AI-driven product rollouts, new strategic partnerships, or quarterly earnings beats could provide the ideal entry points for different investor profiles.

Is it the Right Time to Buy ServiceNow?

Synthesizing the above, ServiceNow exhibits a convergence of strengths rarely found in a single technology name: explosive top-line growth, industry-leading margins, a fortress-like customer base, superior innovation in AI, and unflagging market relevance. Despite a premium valuation, the combination of strong financial performance, bullish technical signals, and a rich pipeline of catalysts justifies sustained and even increased investor interest.

With positive market sentiment, exceptional execution, and significant sector tailwinds aligning, ServiceNow seems to represent an excellent opportunity for discerning investors to potentially capitalize on the ongoing evolution in enterprise software. For those seeking a best-in-class technology leader to anchor their portfolios—especially in the context of the Philippine market’s tech-forward aspirations—the case for ServiceNow’s upside appears both timely and robust.

As the technology sector enters a new era powered by AI and digital transformation, ServiceNow stands out as a strategic entry point, offering a compelling combination of confidence, growth, and innovation for investors who value forward-thinking opportunities in the global software space.

How to buy ServiceNow stock in the Philippines?

Buying ServiceNow (NOW) stock online is both simple and secure when you use a regulated broker in the Philippines. With just a few steps, you can access leading US-listed companies like ServiceNow from your desktop or mobile device. There are two common ways to invest: buying shares directly for cash (spot buying), or trading contracts for difference (CFDs), which allow you to profit from price movements without owning the shares. Each approach comes with its own features and costs. To help you make the best choice, you’ll find a detailed comparison of brokers further down the page.

Spot Buying

A cash purchase (or “spot buying”) of ServiceNow means you directly own real shares in your online portfolio. This approach is ideal for long-term investors who want to participate fully in ServiceNow’s growth and have full shareholder rights. Filipino investors receive shares in USD, and most regulated Philippine or international brokers offering US stocks charge a fixed commission per order—often around PHP 300–400, or about USD 5.

Important example

Example: If ServiceNow’s share price is $1,025, you can purchase approximately 0.97 shares with a $1,000 investment (accounting for a $5 commission fee). Many brokers now offer fractional shares, allowing you to invest even small amounts efficiently.

Gain scenario

Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.
Result: That’s a +$100 gross gain, or +10% return on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on ServiceNow’s price movement without owning the underlying stock. This popular method is accessible through online brokers regulated for CFDs in the Philippines and offers flexibility, including leverage. CFD fees typically include a spread (the buy/sell price difference) and overnight financing charges for holding leveraged positions.

Important example

Example: Imagine you open a CFD trade on ServiceNow with a $1,000 stake using 5x leverage. This gives you $5,000 in market exposure.

Gain scenario

Gain scenario: If ServiceNow’s stock price rises by 8%, your leveraged position grows by 8% × 5 = 40%.
Result: That’s a gain of +$400, on a $1,000 margin deposit (excluding any fees).

Final Advice

Before investing, it’s essential to compare brokers’ fee structures, currency conversion charges, minimum deposits, and customer support—these can vary widely between platforms available to Philippine residents. The choice between spot buying and CFD trading will depend on your objectives: spot buying suits long-term growth, while CFDs cater to those seeking flexibility and leverage for short-term opportunities. To easily find the best option for your needs, visit our broker comparator further down the page. Happy investing!

Our 7 tips for buying ServiceNow stock

The latest news about ServiceNow

ServiceNow’s stock price saw a strong intraday gain of +2.05% to $1,025 on May 27, 2025, signaling positive market sentiment. This movement comes despite a short-term dip in the past week, and reinforces renewed investor optimism since the price remains above all key moving averages (20, 50, 100, 200-day), indicating sustained bullish momentum. The stock’s robust one-month gain of 6.25% and a significant 36% rally over the past year point to ongoing confidence in ServiceNow’s strategic trajectory, with medium volatility making it an attractive consideration for Philippine investors seeking international technology exposure.

Technical indicators show ServiceNow shares are in a strong, upward trend, supported by a bullish flag chart pattern and buy signals. The MACD’s current value and the RSI’s neutral reading provide reliability to the bullish outlook, while the ADX at 35.28 further confirms trend strength. These technicals are closely monitored by equity analysts and active traders in the Philippines, as U.S.-listed technology stocks have grown increasingly popular through local broker international access programs. The sustained technical strength offers tactical entry points for regional investors.

Recent quarterly financial results highlighted 19% year-over-year subscription revenue growth and a notable beat of analyst earnings expectations. Q1 2025 figures revealed $3.01 billion in subscription revenue (total revenue up 18.5% YoY) and $4.04 in non-GAAP EPS, outpacing consensus forecasts. The company also exceeded 500 customers holding annual contracts above $5 million, reinforcing its grip on enterprise markets—a signal especially relevant for large Southeast Asian conglomerates and financial institutions evaluating platform investments.

Global partnerships and expanded AI capabilities position ServiceNow as a digital transformation leader, with potential benefits for the Philippine enterprise sector. The company has announced significant collaborations with NVIDIA and Vodafone Business, and pending acquisitions to strengthen AI and CRM functions. These initiatives support ServiceNow’s drive to deliver next-generation automation and workflow solutions, which are increasingly in demand among Philippine corporates, financial institutions, and BPOs (business process outsourcing firms) seeking efficiency and digital resilience.

Analyst sentiment remains positive, with leading firms recently raising price targets and reaffirming outperformance ratings, reflecting optimism about ServiceNow’s AI-led growth. BMO Capital’s recent price target increase to $1,150 and Bernstein’s maintained Outperform rating highlight the global consensus that ServiceNow’s continued innovation and client growth are sustainable for the long term. For Philippine investors, this expert confidence—combined with ServiceNow’s strong cash flow and absence of dividend obligations—can justify inclusion in diversified global technology portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.