
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc has demonstrated robust growth in subscription revenue, achieving a year-over-year increase of 21.5% to $3,299 million, which exceeded both management's guidance and market consensus. The expansion of large customers with over $5 million in annual contract value (ACV) indicates deeper platform adoption and successful upsell strategies, supporting an estimated full-year subscription revenue growth of approximately 20%. Additionally, ServiceNow's significant advancements in market share within the IT service management sector, growing from 34% in 2020 to 40% in 2024, along with its increased presence in model-driven application platforms and human capital management, reinforces its competitive position and positive outlook.
Bears say
ServiceNow Inc's Rule of 40 score decreased to 54 for FY24, indicating a slowdown in revenue growth despite some improvements in profitability, which raises concerns about the company's long-term growth trajectory. Additionally, ServiceNow's stock has underperformed compared to broader software indices, with a year-to-date decline of 23%, reflecting challenges in maintaining competitive advantage amid increasing competition and changing market dynamics. The combination of slowing organic revenue growth, a potential decline in premium valuations, and internal changes such as the planned departure of the CFO further contribute to a negative outlook for the stock.
This aggregate rating is based on analysts' research of ServiceNow and is not a guaranteed prediction by Public.com or investment advice.
ServiceNow (NOW) Analyst Forecast & Price Prediction
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