Is ServiceNow Stock a Buy After Its Brutal First Half?

ServiceNow shares fell 50% from their 52-week high due to AI disruption fears in the software sector, but the company's strong Q1 2026 results and successful AI monetization through Now Assist suggest the concerns may be overblown. With subscription revenue growing 22% year-over-year and Now Assist tracking toward $1.5 billion in annual contract value, the stock has rebounded 30% off its lows. However, at a forward P/E of 24 and P/S of 7, the stock remains fairly valued rather than cheap, making a small position reasonable for risk-tolerant investors but not an easy buy.