At $108.73, ServiceNow (NYSE:NOW | NOW Price Prediction) is a Buy, with a 12-month price target of $145.
ServiceNow shares are up 40% this month, leading an industrywide relief rally among enterprise software companies.
Shares of ServiceNow (NYSE:NOW | NOW Price Prediction) are up 14% in Friday trading, changing hands at roughly $124 after closing Thursday at $108.73.
NOW is betting on governance, security and enterprise integration to sustain growth and capture larger AI budgets.
ServiceNow, Inc. (NOW) Presents at Jefferies Software, Internet & AI Conference Transcript
Recently, Zacks.com users have been paying close attention to ServiceNow (NOW). This makes it worthwhile to examine what the stock has in store.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
I'm keeping ServiceNow firmly as a Buy, with valuation multiples near decade lows and significant pessimism already priced in. NOW's AI revenue remains nascent, and management targets $30B+ subscription revenue by 2030, implying a 20%+ CAGR. The company positions itself as the orchestration layer for enterprise AI, leveraging a hybrid per-seat and consumption-based pricing model.
ServiceNow (NOW) reported earnings 30 days ago. What's next for the stock?
ServiceNow is rated Strong Buy after a ~50% 1Y price drop, driven by misunderstood M&A margin dilution and deferred Middle East revenue. NOW is transitioning from seat-based SaaS to a hybrid AI OS, leveraging volumetric token consumption and the Action Fabric to monetize third-party AI agent activity. Strategic acquisitions (Armis, Veza) position NOW as a leader in AI identity governance, but integration risks threaten its single-data-model architecture.
ServiceNow trades at a sub-1x PEG, offering 20%+ subscription growth, 35%+ FCF margins, and robust balance sheet strength. Agentic AI and orchestration via Action Fabric and Model Context Protocol are driving CIO-level adoption, as evidenced by 130% YoY growth in $1M+ Now Assist customers. Management targets +100 bps annual margin expansion and a path to Rule of 60 by 2030, with FY27 EPS forecasted at $5.45, above consensus.
ServiceNow (NOW) is positioned as a core enterprise AI infrastructure, not just a workflow software vendor. NOW's management targets $30B+ subscription revenue by 2030, 30%+ FCF margins, and 30% revenue growth, leveraging a $600B TAM. Nvidia CEO Jensen Huang endorses NOW as the 'AI enterprise operating system,' with Nvidia using ServiceNow internally.