ServiceNow CEO on AI: Agents have picked up work that would have been done by other people
Speakers
Bill McDermott
— CEO, ServiceNow
Summary
CNBC's Jon Fortt interviews ServiceNow CEO Bill McDermott at the company's Knowledge conference. McDermott highlights ServiceNow's multiple billion-dollar business lines and argues the sum-of-the-parts value is higher than the current market cap. He also discusses how AI agents are reducing the need for stock-based compensation by taking over work previously done by employees.
- ServiceNow CEO Bill McDermott spoke with CNBC's Jon Fortt.
- McDermott noted six ServiceNow businesses are each generating billions in revenue.
- He argued that if these businesses were spun off individually, the total valuation could reach $150 billion.
- The comment implies ServiceNow's current stock price may be undervalued on a sum-of-the-parts basis.
- McDermott also addressed the workforce impact of AI agents replacing roles that previously received stock-based compensation.
- He suggested the reduced need to issue stock to employees will offset the decline in stock-based compensation expense.
- The interview took place after ServiceNow's analyst day and its AI agent platform announcement with NVIDIA.
Trade Ideas
NOW sum-of-parts undervalued at $150B.
ServiceNow has six billion-dollar businesses (CRM, security, core, etc.) that if spun off individually would sum to roughly $150 billion, implying the current market cap is undervalued as Wall Street has not yet recognized this sum-of-the-parts value.
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This CNBC video, published May 06, 2026, features Bill McDermott discussing NOW. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: Bill McDermott · Tickers: NOW