ServiceNow (NOW) Sold Off Despite a Solid Result

3 weeks ago 22

Soumya Eswaran

Thu, July 9, 2026 astatine 7:42 AM CDT 4 min read

Lakehouse Capital, a Sydney-based concern manager, published its "Lakehouse Global Growth Fund" capitalist missive for April 2026. A transcript of the missive tin beryllium downloaded here. In April, respective portfolio companies reported earnings. Overall, updates were positive, indicating that the companies proceed to execute connected maturation opportunities and amusement beardown fundamentals. The money returned -0.8% nett of fees and expenses, whereas its benchmark, the MSCI All Country World Index Net Total Returns (AUD), returned 5.0%. The Fund has returned 119.9% since its inception compared to 159.3% for its benchmark. In addition, delight cheque the Fund's apical 5 holdings to cognize its champion picks successful 2026.

In its April 2026 capitalist letter, Lakehouse Global Growth Fund highlighted ServiceNow, Inc. (NYSE:NOW). ServiceNow, Inc. (NYSE:NOW) is simply a cloud-based bundle institution that provides a level for automating and managing integer workflows. On July 8, 2026, ServiceNow, Inc. (NYSE:NOW) closed astatine $107.78 per share, reflecting a marketplace capitalization of $111.15 billion. ServiceNow, Inc. (NYSE:NOW) posted a one-month instrumentality of 4.56%, portion its shares mislaid 44.33% implicit the past 52 weeks.

Lakehouse Global Growth Fund stated the pursuing regarding ServiceNow, Inc. (NYSE:NOW) successful its April 2026 capitalist update:

"US-based bundle company, ServiceNow, Inc. (NYSE:NOW), delivered a coagulated effect with revenues increasing 22% year-on-year to $3.8 cardinal and operating income increasing 26% year-on-year to $1.2 billion. The company's cardinal show indicators remained healthy, with retention rates astatine 97% and their backlog (remaining show obligations) increasing 24% to $27.3 billion, representing astir 2x yearly revenue. Performance was evenly dispersed crossed segments, products, and geographies, and the institution continued to execute connected the ample woody front, closing 16 deals with greater than $5 cardinal successful nett caller yearly declaration value, up 80% year-on-year. Customers spending much than $5 cardinal successful ACV expanded 22% year-on-year, an acceleration from the anterior 2 quarters.

The standout affirmative was a important step-up successful AI monetisation. Management raised its afloat twelvemonth Now Assist ACV people from US$1.0 cardinal to US$1.5 billion, reflecting continued outperformance from its AI solutions. Several underlying information points reenforce the encouraging trajectory: Now Assist customers spending much than $1 cardinal successful ACV grew 130% year-on-year, and astir fractional of each net-new concern is present coming from non-seat-based pricing models. Management besides noted that archetypal Pro Plus purchases included capable Assist capableness to enactment 12 to 18 months of experimentation, but that pain rates should emergence meaningfully arsenic customers deploy much sophisticated, agentic usage cases — mounting up a worldly depletion ramp successful the 2nd fractional of 2026.

Looking ahead, we proceed to judge ServiceNow is 1 of the highest-quality bundle businesses globally, and that the existent valuation of 15x 2026 escaped currency travel materially undervalues the semipermanent net powerfulness of the business."

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