ServiceNow CEO Bill McDermott goes one-on-one with Jim Cramer
Speakers
Bill McDermott
— CEO, ServiceNow
Jim Cramer
— Host, Mad Money
Summary
Bill McDermott, Chairman and CEO of ServiceNow, joins Jim Cramer after ServiceNow's quarterly results and guidance. McDermott defends the company against the market's AI-disruption fears, highlights growth, AI integrations, buybacks, and security expansion, and argues the stock's decline is unjustified multiple compression. Cramer frames the interview around whether the market or management is right about the stock.
- ServiceNow reported a Q4 and full-year beat and raised guidance.
- Bill McDermott describes ServiceNow as a one-of-one AI workflow platform with more than 20% revenue growth and above 35% free cash flow margins.
- He says AI language models are harmonious with ServiceNow rather than disruptive, citing OpenAI and Anthropic partnerships.
- ServiceNow announced a $5B buyback, including a $2B accelerated repurchase.
- Management cited 25% MAU growth, 1.3 billion addressable seats, hybrid pricing, Assist AI packs, and security expansion with Armis.
- McDermott attributes the stock's 45% drop to multiple compression from being grouped with weaker software companies.
- Cramer notes enterprise software has suffered in the market even with okay earnings.
Ideas
ServiceNow is mispriced AI platform leader
ServiceNow is a once-in-a-generation enterprise AI workflow platform that is not being disrupted by large language models; it is integrating OpenAI and Anthropic models into business workflows, acting as a consolidator of feature/function software, and growing revenue more than 20% with free cash flow margins above 35% under a rising Rule of 55 to 57. It beat Q4 and full-year expectations, raised guidance, saw monthly active users up 25% with 1.3 billion addressable seats and TAM rising from $90B to $600B, added new Assist AI consumption revenue, expanded security with Armis, and announced a $5B buyback including a $2B accelerated repurchase. McDermott argues the stock's fall is only multiple compression from being wrongly grouped with weaker software names, and he expects a rerating from the current entry point.
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This CNBC video, published January 29, 2026, features Bill McDermott discussing NOW. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Bill McDermott · Tickers: NOW