Polen Capital Management, LLC on ServiceNow, Inc.
Thesis
Polen regards ServiceNow as an example of an established software franchise that can benefit from generative AI rather than be displaced by it. The company delivered strong earnings, exceeded expectations on key measures, accelerated AI revenue and increased full-year guidance. Its demand remains broad across IT service management, operations, security, customer workflows and industry-specific applications. The manager believes this execution undermines the market narrative that enterprise software must lose to AI.
“AI can be a revenue opportunity rather than a headwind.”
Key risks
- Generative AI could disrupt some established software business models
- Valuation or sentiment could weaken if AI monetization fails to sustain expectations