ServiceNow (NOW) is drawing strong analyst support following robust quarterly performance and expanding enterprise cloud demand, with multiple firms upgrading the stock and raising price targets. The momentum reflects growing confidence in the company’s digital workflow platform and AI-driven innovation.
- ServiceNow reported 19% year-over-year revenue growth, reaching $2.2 billion in the latest quarter.
- Net revenue retention rose 134%, indicating strong customer retention and expansion.
- Over 30% of enterprise clients now use Now Platform Gen AI features.
- Subscription revenue accounts for 98% of total sales, reinforcing recurring revenue stability.
- Analysts have raised price targets, with the highest at $980 per share—nearly 20% above current levels.
- Trading volume increased 45% in the past five days, and market cap exceeds $250 billion.
ServiceNow (NOW) has emerged as a top pick among Wall Street analysts, with a majority upgrading the stock to 'buy' or 'outperform' in the past month. The surge in positive ratings follows the company’s latest earnings report, which revealed 19% year-over-year revenue growth, reaching $2.2 billion, and a record 134% increase in net revenue retention, signaling deep customer stickiness and cross-selling success. Analysts point to the company’s strategic push into AI-powered workflow automation as a key growth catalyst, with its Now Platform Gen AI features now deployed across over 30% of enterprise clients. The firm’s expanding footprint in the global cloud services market underscores its competitive edge. ServiceNow’s global customer base now numbers over 9,000 enterprises, including 60% of Fortune 500 companies, with subscription revenue accounting for 98% of total sales. This recurring revenue model has contributed to a 25% increase in operating margin year-over-year, demonstrating both scalability and improving profitability. These metrics have prompted several major financial institutions to raise their price targets, with the highest now at $980 per share—nearly 20% above the current market price. The rally in analyst sentiment is translating into tangible market activity. NOW’s trading volume has risen 45% over the last five days, and its market capitalization has surpassed $250 billion, reaffirming its status as a leader in the enterprise software space. Investors are particularly focused on the company’s integration of generative AI into IT service management and human resources workflows, which is expected to drive further adoption in 2026 and beyond. This momentum is also influencing broader sector trends, with peers in the cloud software industry seeing elevated trading volumes and renewed interest from institutional investors.