ServiceNow Surges 2.86% on AI Expansion and Strategic Deals Ranks 23rd in 2.28B Trading Volume

On August 18, 2025, ServiceNow (NOW) surged 2.86% as trading volume reached $2.28 billion, a 50.19% increase from the prior day, ranking the stock 23rd in volume among listed equities. The move followed strategic developments in the company’s AI-driven platform, which analysts highlight as a potential catalyst for long-term growth despite macroeconomic challenges.

ServiceNow’s AI Control Tower, a centralized governance system for enterprise AI agents, has driven a 22.5% year-over-year rise in subscription revenue to $3.11 billion in Q2 2025. The firm’s collaboration with NVIDIA on the Nemotron large language model has expanded its AI capabilities, while the acquisition of data.world bolstered data governance infrastructure critical for AI deployment. These initiatives have translated into tangible contracts, including a $20 million Now Assist deal and 21 multi-product agreements.

Expanding beyond IT service management, ServiceNow’s acquisition of Logik.ai enhanced configure-price-quote functionalities, enabling the company to compete in markets traditionally dominated by Salesforce. Customer adoption metrics remain strong, with 528 clients generating over $5 million in annual contract value and a 98% renewal rate. However, federal sector budget constraints and extended procurement cycles pose near-term risks, with third-quarter RPO growth expectations tempered by a 200-basis-point headwind from large customer renewals.

The Zacks Consensus Estimate for Q3 2025 earnings stands at $4.22 per share, reflecting a 13.44% year-over-year increase, while revenue is projected at $3.35 billion, up 19.88%. Competitive pressures from Salesforce’s Einstein AI and Microsoft’s Copilot expansion underscore the need for ServiceNow to differentiate its agentic AI offerings. Despite robust operational execution, a forward 12-month price-to-sales ratio of 12.32X—well above the sector average of 6.78X—suggests a cautious valuation approach.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 delivered a 31.52% total return over 365 days, with an average 1-day return of 0.98%. This indicates the strategy captured short-term momentum but also reflected market volatility and timing risks.