Janus Henderson Global Sustainable Equity Fund on ServiceNow, Inc.
Thesis
ServiceNow rebounded after being treated as a potential AI casualty, but the fund sees evidence that AI is instead accelerating growth. Second-quarter results were strong, full-year guidance was raised, and AI products such as Now Assist were generating more than USD 1 billion of annual contract revenue. The investment case is that ServiceNow's workflow platform can monetize AI adoption rather than be displaced by it. ([ServiceNow Investor Relations][6])
“A key driver was accelerating AI-driven growth, with AI-related products such as Now Assist producing more than $1 billion in annual contract revenues.”
Key risks
- Renewed investor concern that enterprise software could be disrupted by AI
- Failure of AI-product growth to translate into durable revenue growth