Jim Cramer Says ServiceNow Is “Starting to Look Good”

SelfRugger · 2026-02-10T16:13:19+00:00

Jim Cramer highlighted ServiceNow as a potentially undervalued stock, noting its expected 19% earnings growth and a significant buyback. Despite its recent decline, he sees promise, though suggests other AI stocks may offer better value.

SelfRugger

2026-02-10 16:13:19

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Jim Cramer Says ServiceNow Is “Starting to Look Good”

Syeda Seirut Javed

Wed, February 11, 2026 at 12:58 AM GMT+9 2 min read

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                                      StockStory Top Pick

NOW

+3.73%

ServiceNow, Inc. (NYSE:NOW) is one of the software stocks that Jim Cramer named as potential undervalued buys. Cramer highlighted the company’s expected earnings growth during the episode, as he said:

ServiceNow, which we had on the show last week, is also starting to look good, down over 50% from its high. They’re expected to grow earnings by 19% this year. And though you’d have to still pay a slight premium with the stock selling for nearly 24 times this year’s numbers, that’s down from nearly 70 times forward earnings at the end of 2024. ServiceNow also announced a big buyback last week, including a $2 billion accelerated buyback. So you have to assume that they’ll be right there buying along with you.

ServiceNow, Inc. (NYSE:NOW) provides a cloud platform that supports digital workflows through AI, automation, low-code tools, analytics, and a suite of IT, security, customer service, and employee experience products. Cramer discussed the stock during the February 2 episode and commented:

ServiceNow was the fourth worst performer with an almost 24% pullback… Now, I think ServiceNow really stands out as a poster child for what’s happening to the group. We just had chairman and CEO Bill McDermott on the show last Wednesday night after ServiceNow reported a very good quarter. That was a beat on every key line, mostly better than expected guidance for the current quarter and the full year. Now, honestly, I did think that the numbers would allow the stock to rebound. I thought it would at least get some lift, but I was wrong. Instead, it plunged 10% off the numbers, nearly 10%.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the** best short-term AI stock**.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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