ServiceNow (NOW) Products See Growth Amid Transformation into AI-Powered Enterprise Platform

What: ServiceNow (NOW) reported a **23%** year-over-year growth in its product revenue, driven by adoption of its AI-powered enterprise platform.
Why: The growth is attributed to the company's successful transformation into a platform that offers AI-driven services, including workflow automation and customer service management.
Signal: NOW's stock price has surged **15%** in the past quarter, indicating a positive market sentiment towards the company's AI-powered platform.
Target: ServiceNow is expected to reach a market capitalization of over **$50 billion** by the end of 2026, driven by its growing product revenue and expanding customer base.
Risk: The company's heavy investment in AI research and development poses a risk of increased operating expenses, which could impact its profitability in the short term.