ServiceNow’s 1.12B-Share Volume Ranks 63rd Amid 26.82% Drop as Federal AI Contract Boosts Government IT Modernization

On September 9, 2025, , . .

ServiceNow secured a major federal contract with the U.S. General Services Administration (GSA), enabling widespread adoption of its AI-driven IT platform across government agencies. , . This partnership positions ServiceNow as a central player in federal IT modernization, aligning with broader government AI initiatives. Analysts highlight the deal’s potential to expand the company’s public sector revenue and enhance institutional client pipelines.

Recent earnings results underscored ServiceNow’s momentum, . The company also emphasized AI-related revenue growth during its 2025 analyst day, reinforcing its strategic focus on . , the stock has shown resilience, .

Valuation debates persist, with some analysts suggesting ServiceNow is undervalued due to its long-term growth prospects in AI and CRM expansion. However, others note that aggressive pricing in government contracts could pressure margins and introduce volatility. , though risks include geopolitical uncertainties and reliance on U.S. federal deals.

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