ServiceNow (NOW) Stock Forecast & Price Target

ServiceNow Inc has experienced a significant expansion in its user base, potentially increasing by over 50% within the last six months, which suggests strong demand for its software solutions. The company's robust customer growth, with a reported doubling of its customer base over the past two years, indicates a compound annual growth rate (CAGR) of approximately 40%, positioning ServiceNow favorably in the rapidly evolving market of enterprise software. Additionally, the integration of Moveworks, alongside its FedRAMP certification, is expected to enhance ServiceNow's public sector business and drive efficiencies, further underpinning a positive outlook for its growth trajectory in the SaaS domain.

ServiceNow faces significant challenges, including macroeconomic pressures and competitive threats, which contribute to a negative outlook on its stock performance. The company is experiencing slower-than-expected adoption of its Agentic AI technology and must address risks associated with government procurement, particularly since approximately 10% of its revenue stems from the public sector, which is facing spending cuts. Additionally, the failure to penetrate international markets effectively, coupled with the need to innovate amid rapidly evolving technologies, may adversely impact its business results and overall market position.