ServiceNow Inc. (NOW) provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. ServiceNow shares have outperformed the industry year to date. NOW has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 2020 total customers with more than $1 million in annual contract value (ACV) at the end of third quarter, which represents 14% year-over-year growth in customers. ServiceNow had 15 deals greater than $5 million in net new ACV and six deals of more than $10 million. It closed 96 deals greater than $1 million net new ACV. ServiceNow had 44 new Now Assist customers spending more than $1 million in ACV, including six with more than $5 million and two with more than $10 million. It is riding on an expanding partner base. ServiceNow has a strong balance sheet with ample liquidity position. For fiscal 2024, 11 analysts revised their earnings estimate upwards in the last 60 days. Analysts are expecting earnings to grow by double digits for the current fiscal year, with revenue forecasted to rise by double digits also. 

Vertiv Holdings Co (VRT) provides digital infrastructure and continuity solutions.  It is riding on strong AI-driven order growth. The growing focus on thermal management by data center providers bodes well for Vertiv. For the current quarter, Vertiv is expected to post earnings indicating a change of +48.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.4% over the last 30 days. For the current fiscal year, the consensus earnings estimate points to a change of +52% from the prior year. Its Zacks Rank #1 does suggest that it may outperform the broader market in the near term. Solid AI-related demand is expected to provide a tailwind to Vertiv’s order and sales growth.

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