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For most of 2026, software has been one of the market’s least-loved sectors. While investors rushed into AI infrastructure names tied to GPUs, networking, memory and data centers, many high-quality software companies were left behind. ServiceNow $NOW ( ▲ 5.89% ) has been one of the biggest victims of that rotation.
Yet beneath the weak sentiment, the business itself continues to execute. Revenue growth remains close to 20%, free cash flow margins remain among the highest in enterprise software, and management believes its addressable market has expanded to roughly $600 billion.
The upcoming earnings report could become an important test—not because investors doubt ServiceNow is a great company, but because they want proof that AI is becoming a meaningful growth driver rather than simply another product feature. Let’s take a deeper dive.
$NOW ( ▲ 5.89% ) has suffered lately amid Saaspocalypse fears
An under-the-radar high-flying software name
🧐 My second-largest position is a software name most investors have never heard of. I started accumulating earlier this year in the low teens. It's now up more than 100%.
Investment Club members had the trade, the sizing, and the thesis before the move.
If you'd like to be part of it, you can join us here.
George
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