Santa Clara, California-based ServiceNow, Inc. (NOW) is a leading software company that provides cloud-based solutions for digital workflow automation. Valued at a market cap of $209.3 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. The company’s core strengths lie in its powerful and scalable cloud platform and its leadership in IT Service Management (ITSM). Its flagship product, the Now Platform, is known for high customizability, strong integration capabilities, and user-friendly interfaces.

This IT service management giant is currently trading 15.6% below its 52-week high of $1,198.09, reached on Jan. 28. NOW has surged 8.8% over the past three months, outpacing the SPDR S&P Software & Services ETF’s (XSW) 1.7% rise during the same time frame.

In the longer term, NOW has soared 38.7% over the past 52 weeks, outpacing XSW’s 19.8% return over the same time frame. Moreover, on a YTD basis, shares of NOW are down 4.6%, compared to XSW’s 5.2% loss.

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

On Apr. 23, NOW delivered strong Q1 results, prompting its share price to rise 15.5% in the following trading session. The company posted revenue of $3.1 billion and adjusted EPS of $4.04, both above Wall Street estimates. Moreover, compared to the year-ago quarter, its revenue improved 18.6%, while its bottom line advanced 18.5%.  A robust 19.1% year-over-year growth in its key subscription revenue aided the results. Additionally, the company crossed 500 customers with more than $5 million in Annual Contract Value (ACV). It also reported a strong annual increase in both its current remaining performance obligations (cRPO) and remaining performance obligations, indicating robust demand for its offerings. This might have further bolstered investor confidence. 

ServiceNow’s outperformance looks pronounced when compared to its rival, Salesforce, Inc. (CRM), which declined 1.7% over the past 52 weeks and 20.6% on a YTD basis. 

Looking at NOW’s recent outperformance, analysts remain highly optimistic about its prospects. The stock has a consensus rating of "Strong Buy” from the 39 analysts covering it, and the mean price target of $1,072.35 suggests a 6.1% premium to its current levels.