ServiceNow (NOW) Stock Forecast & Price Target

ServiceNow is benefiting from stable core demand, with partners reporting little quarter-over-quarter change in the IT buying backdrop and continued strength in ITSM, renewals, and existing-customer expansions. Its outlook is further supported by a de-risked 3Q26 setup, where subscription revenue of $3,975-3,980 million at the midpoint and cRPO growth of 20% appear achievable, while stronger federal data and the potential for upside from Security & Risk, Armis, and AI Control Tower add incremental growth drivers. Even as AI monetization remains early, the company’s asset-light platform, recurring revenue base, and improving product attach across workflows, security, and AI governance position it well for durable growth and operating leverage.

ServiceNow is facing a fundamental adoption problem because AI usage remains early, fragmented, and not yet embedded in core workflows, limiting the consumption and monetization needed to justify its expanding AI narrative. The comments suggest the company is still mostly selling ITSM, while newer pushes into security, front office, and AI Control Tower are not gaining meaningful traction, with customers also pushing back on token-cost uncertainty, confusing packaging, and pressure to convert to new AI bundles. At the same time, lighter new-logo activity, constrained sales execution, and a micromanaged, KPI-driven culture point to weaker go-to-market momentum and a less compelling product transition than management implies.