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ServiceNow Surges to 38th in Market Activity with $1.63 Billion Trading Volume

Market BriefFriday, May 2, 2025 7:28 pm ET

1min read

On May 2, 2025, servicenow (NOW) saw a trading volume of $1.63 billion, ranking 38th in the day's market activity. The stock rose by 2.03%, marking its fourth consecutive day of gains, with a total increase of 4.26% over the past four days.

Truist Financial upgraded ServiceNow to a "Buy" rating from "Hold" following the company's stronger-than-expected first-quarter results. The firm highlighted ServiceNow's platform architecture, which is expected to deliver compounding gains across all operating segments. Truist believes that during periods of rising market uncertainty, ServiceNow will benefit as a key strategic technology partner, aiding customer consolidation efforts.

Truist also noted ServiceNow's leading position in the AI space, with industry feedback indicating a trend towards purchasing pre-built AI tools rather than developing in-house solutions. The company's strong connectivity within IT organizations and growing use cases with knowledge workers position it favorably for AI buildouts. Additionally, Truist estimates that ServiceNow's federal business segment comprises approximately 9% of annual contract value, despite potential risks associated with the Department of Defense’s Global Employment of the Force.

Despite ServiceNow's premium valuation, trading at 15x FY25 revenue, Truist justifies the premium based on the company's prospects as a generational compounder in enterprise software. The firm forecasts that ServiceNow can grow its top line by high-teens percentage points over the next five years, supporting the raised price target.

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