ServiceNow (NOW) Faces Questions Over Acquisitions and Capital Allocation
Sustainable Growth Advisers (SGA) released its Q2 2026 investor letter for the Global Growth Strategy, evaluating ServiceNow, Inc. (NYSE:NOW). SGA's Global Growth Portfolio returned 7.4% gross and 7.2% net, lagging the MSCI ACWI and MSCI ACWI Growth Index. The letter emphasized ServiceNow's recent acquisitions and the importance of shareholder transparency, expressing concern over the lack of timely communication during strategic decisions.
SGA believes valuation compression is a result of sentiment rather than weak business quality and forecasts 16% revenue growth and 20% earnings growth over three years for ServiceNow.
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