ServiceNow NOW is using strategic partnerships to strengthen key parts of its AI strategy, such as AI governance and enterprise data management. The company recently announced partnerships with Inspira Enterprise and IBM that support these efforts. Both partnerships address common problems that companies face when deploying AI, including managing AI agents, governing AI usage and preparing enterprise data for AI applications.
Inspira Enterprise has collaborated with ServiceNow to deploy AI Control Tower as the governance platform for its AI operations. The deployment includes more than 50 AI agents across identity and access management, threat and vulnerability management, cyber defense, risk management and internal business operations. The partnership makes Inspira a delivery partner for AI Control Tower, Veza and Armis solutions, helping ServiceNow expand its implementation capabilities across AI governance, identity security and asset intelligence projects.
ServiceNow also expanded its partnership with IBM to help enterprises modernize legacy applications and make enterprise data usable for AI workloads. The partnership combines IBM's AI, automation and data technologies with ServiceNow's AI Platform. IBM's watsonx.data capabilities should extend ServiceNow's Workflow Data Fabric, adding data quality, observability and master data management capabilities.
These partnerships support products that ServiceNow identified as important growth areas. During the first quarter of 2026, management said AI Control Tower’s average deal sizes more than doubled sequentially, while Workflow Data Fabric remained a key part of its AI strategy. The above-mentioned factors show how the Inspira and IBM partnerships support ServiceNow's efforts to drive adoption of its AI platform and related products.
The Zacks Consensus Estimate for ServiceNow's 2026 and 2027 revenues indicates year-over-year growth of 21.9% and 18.1%, respectively.
ServiceNow Faces Stiff Competition
ServiceNow is facing stiff competition from the likes of Salesforce CRM and Atlassian TEAM.
Salesforce competes with ServiceNow through its offerings such as Agentforce, Data Cloud and Slack, through which it creates a unified ecosystem and connects customer data with integrated AI across systems, apps and devices. In the first quarter of fiscal 2027, Agentforce’s annual recurring revenues (ARR) surpassed $1 billion, up in triple digits year over year. Salesforce expects this momentum to continue in fiscal 2027, on the back of robust customer demand for its agentic offerings.
Atlassian competes with ServiceNow through its suite of cloud-based software solutions, such as Jira, Rovo and Teamwork Graph, which help organizations collaborate and manage their workforce. In the third quarter of fiscal 2026, Atlassian continued to add millions of monthly active users to Rovo, while strong customer engagement across Jira helped the company's cloud business grow 29% on a year-over-year basis.
NOW’s Share Price Performance, Valuation & Estimates
ServiceNow shares have plunged 39.3% year to date compared with the Zacks Computers - IT Services industry’s decline of 26%.
NOW’s YTD Price Performance
Image Source: Zacks Investment Research
ServiceNow stock is overvalued, with a forward 12-month price/earnings (P/E) of 20.48X compared with the industry’s 16.71X. NOW has a Value Score of D.
NOW Forward 12 Months (P/E) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ServiceNow’s 2026 earnings is pegged at $4.13 per share, revised down by a cent over the past 30 days. The figure indicates a 17.7% increase year over year.
Image Source: Zacks Investment Research
ServiceNow stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).