ServiceNow, Inc. (NOW) is a leading cloud-based software company that provides digital workflow solutions to help enterprises automate IT, employee, customer, and creator workflows. Valued at a market cap of $190.8 billion, the company helps organizations streamline operations by digitizing and automating routine business processes across IT, HR, customer service, and other departments.

Companies valued at $200 billion or more are typically classified as “mega-cap stocks,” and ServiceNow fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software application industry. Headquartered in Santa Clara, California, ServiceNow serves global enterprises across various industries and is recognized for its strong revenue growth and recurring subscription-based income.

This IT service management giant is currently trading 23.4% below its 52-week high of $1,198.09, reached on Jan. 28. NOW has dropped 9.6% over the past three months, underperforming the S&P 500 Index ($SPX), which has returned 9.3% over the same time frame.

In the longer term, NOW has soared 12.7% over the past 52 weeks, trailing the $SPX’s 15.5% return over the same time frame. Moreover, on a YTD basis, shares of NOW are down 13.5%, compared to SPX’s 9.8% rise.

To confirm its bullish trend, ServiceNow has been trading above its 200-day and 50-day moving averages since late July. 

On July 23, ServiceNow reported better-than-expected second-quarter results, which led to the stock surging by 4.2% on July 24. The company’s total revenues increased by 22.5% year-over-year to $3.22 billion, surpassing the consensus estimate $3.12 billion. The company cited its AI platform as a key factor in this growth. Its non-GAAP EPS stood at $4.09. 

ServiceNow’s outperformance looks pronounced when compared to its rival, Salesforce, Inc. (CRM), which declined 1% over the past 52 weeks and 23.4% on a YTD basis. 

The stock has a consensus rating of "Strong Buy” from the 42 analysts covering it, and the mean price target of $1,148.37 suggests a 25.2% premium to its current levels.