
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc demonstrated a robust financial performance with subscription revenue growth projected at approximately 20% for the full year, reflecting an upward revision from previous estimates, and total revenue rising 20.5% year-over-year. The company's significant momentum in its AI offerings is evident, with AI AgentAssist usage expanding 55 times since May and a projected annual recurring revenue (ACV) from its AI business exceeding $500 million this year, positioning ServiceNow on track to meet its $1 billion AI ACV target by 2026. Additionally, the enterprise secured an increase in net-new annual contract value (ACV) from U.S. Federal clients, with growth exceeding 30% year-over-year, highlighting ServiceNow's strategic partnerships and the growing demand for its services across both IT and broader functional areas.
Bears say
ServiceNow Inc's negative outlook is influenced by existential concerns regarding the future of Software as a Service (SaaS) in light of advancements in artificial intelligence, which may threaten its business model. The company is experiencing a slowdown in organic revenue growth, contrasting unfavorably with competitors like Alkami, who reported 24% and 27% organic growth in subsequent quarters. Additionally, the planned departure of long-time CFO Bryan Hill raises concerns about leadership stability, further compounding the potential challenges ServiceNow may face in navigating economic risks and maintaining its competitive edge.
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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