NOW
NOW 3Q25: Solid Core as Usual, so is the Slow AI Ramp
FUNDA
Workflow Management and Fed Spending Improving, but Still Waiting for AI Inflection
We surveyed 3 top ServiceNow channel partners this quarter. Overall, 3Q business remained robust, driven by a rebound in customer spending on workflow management and a stabilization in the Federal sector. Results likely to be slightly ahead of expectations, consistent with prior quarters. 4Q and 2026 outlook is also stable to optimistic, reflecting NOW’s standout resilience in Enterprise SaaS. However, despite continuous AI product development, sales traction remains slow with low contribution. While some partners are optimistic about an acceleration next year, we remain cautious. Overall, given the strong seasonality for software in 4Q and the recent recovery in the AI disruption narrative, we are cautiously optimistic about NOW’s near-term performance.
3Q25 Performance Stable to Accelerating; 4Q25 Outlook Optimistic
North America Channel Expert A
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