Key Takeaways From ServiceNow Analysts Day

• Morgan Stanley maintains an Equal-Weight rating for ServiceNow (NYSE:NOW), with the stock priced at $1,019.99.
• The average brokerage recommendation (ABR) for ServiceNow stands at 1.31, indicating a consensus between Strong Buy and Buy.
• ServiceNow's current stock price is $1,022.98, with a year trading range of $678.66 to $1,198.09, showcasing significant market volatility.

ServiceNow (NYSE:NOW) is a prominent player in the cloud computing industry, providing enterprise solutions that streamline digital workflows. The company is known for its innovative software-as-a-service (SaaS) offerings, which help businesses automate and optimize their operations. ServiceNow competes with other tech giants like Salesforce and Oracle in the enterprise software market.

On July 8, 2025, Morgan Stanley maintained its rating for ServiceNow at Equal-Weight, suggesting investors hold their positions. At that time, the stock was priced at $1,019.99. This recommendation aligns with the current market sentiment, as highlighted by Benzinga in their article "Spotlight on ServiceNow: Analyzing the Surge in Options Activity."

Despite Morgan Stanley's hold recommendation, Wall Street analysts show strong optimism towards ServiceNow. The company's average brokerage recommendation (ABR) stands at 1.31, indicating a position between Strong Buy and Buy. Out of 42 brokerage firms, 35 have given a Strong Buy recommendation, while three have suggested a Buy, accounting for 83.3% and 7.1% of the total, respectively.

ServiceNow's stock price is currently $1,022.98, reflecting a slight decrease of $12.03 or approximately 1.16%. The stock has experienced fluctuations, with a trading range between $1,011.50 and $1,037.95 during the day. Over the past year, the stock has seen a high of $1,198.09 and a low of $678.66, indicating significant volatility.

With a market capitalization of approximately $211.9 billion, ServiceNow remains a major player in the tech industry. The trading volume for the day is 1,457,097 shares on the NYSE, reflecting active investor interest. Despite the recent price dip, the strong analyst recommendations suggest continued confidence in ServiceNow's growth potential.

• ServiceNow's Agentic AI initiative aims to enhance its AI capabilities, attracting U.S. enterprises and potentially improving its stock performance.
• Oppenheimer maintains an "Outperform" rating for ServiceNow (NYSE: NOW), raising the price target from $970 to $1,100.
• The company's strategic focus on AI could drive future growth, with its stock showing volatility but maintaining a strong market position.

ServiceNow (NYSE: NOW) is a prominent player in the enterprise software industry, known for its cloud-based platform that helps businesses automate and streamline their operations. The company is making waves with its Agentic AI initiative, which is attracting attention from U.S. enterprises. This strategic move aims to enhance ServiceNow's AI capabilities, positioning it as a leader in AI-driven enterprise solutions.

The Agentic AI initiative is expected to boost the adoption of ServiceNow's platform among businesses looking to leverage advanced AI technologies. This could lead to improved operational efficiency and innovation for these companies. As ServiceNow expands its influence in the AI sector, this development may impact its stock performance positively.

On May 6, 2025, Oppenheimer maintained its "Outperform" rating for ServiceNow (NYSE: NOW), with the stock priced at $978.05 at the time. Oppenheimer also raised the price target from $970 to $1,100, indicating confidence in ServiceNow's growth prospects. This aligns with the company's strategic push in AI, which could drive future stock performance.

Currently, ServiceNow's stock is priced at $968.13, reflecting a slight decrease of 1.01% or $9.92. The stock has fluctuated between $964.50 and $978 during the trading day. Over the past year, it has reached a high of $1,198.09 and a low of $637.99, showcasing its volatility.

ServiceNow's market capitalization is approximately $200.4 billion, with a trading volume of 520,343 shares. As the company continues to expand its AI offerings, its market position and stock performance may see further growth, supported by its strategic initiatives and positive analyst outlook.

• ServiceNow's Agentic AI initiative aims to enhance its AI capabilities, attracting U.S. enterprises and potentially improving its stock performance.
• Oppenheimer maintains an "Outperform" rating for ServiceNow (NYSE: NOW), raising the price target from $970 to $1,100.
• The company's strategic focus on AI could drive future growth, with its stock showing volatility but maintaining a strong market position.

ServiceNow (NYSE: NOW) is a prominent player in the enterprise software industry, known for its cloud-based platform that helps businesses automate and streamline their operations. The company is making waves with its Agentic AI initiative, which is attracting attention from U.S. enterprises. This strategic move aims to enhance ServiceNow's AI capabilities, positioning it as a leader in AI-driven enterprise solutions.

The Agentic AI initiative is expected to boost the adoption of ServiceNow's platform among businesses looking to leverage advanced AI technologies. This could lead to improved operational efficiency and innovation for these companies. As ServiceNow expands its influence in the AI sector, this development may impact its stock performance positively.

On May 6, 2025, Oppenheimer maintained its "Outperform" rating for ServiceNow (NYSE: NOW), with the stock priced at $978.05 at the time. Oppenheimer also raised the price target from $970 to $1,100, indicating confidence in ServiceNow's growth prospects. This aligns with the company's strategic push in AI, which could drive future stock performance.

Currently, ServiceNow's stock is priced at $968.13, reflecting a slight decrease of 1.01% or $9.92. The stock has fluctuated between $964.50 and $978 during the trading day. Over the past year, it has reached a high of $1,198.09 and a low of $637.99, showcasing its volatility.

ServiceNow's market capitalization is approximately $200.4 billion, with a trading volume of 520,343 shares. As the company continues to expand its AI offerings, its market position and stock performance may see further growth, supported by its strategic initiatives and positive analyst outlook.

Truist Securities upgraded ServiceNow (NYSE:NOW) to Buy from Hold and raised its price target to $1,200 from $950, citing the company’s growing strategic role in enterprise IT and strong positioning to capitalize on AI trends.

Analysts see ServiceNow as a standout among enterprise software providers, forecasting that the company will continue to consolidate the IT stack by offering an integrated platform that appeals to large global enterprises. Truist emphasized that macroeconomic uncertainty is creating an opportunity for ServiceNow to gain market share as businesses look to streamline operations and reduce vendor complexity.

The firm views ServiceNow as a “rare compounder” with a scalable platform that supports long-term growth through both upselling and cross-selling into its existing customer base. The analysts also noted that this year’s pullback in the stock presents a favorable entry point for investors.

Truist expects ServiceNow’s AI capabilities and platform architecture to remain key differentiators, driving durable growth across its expanding product portfolio.

Truist Securities upgraded ServiceNow (NYSE:NOW) to Buy from Hold and raised its price target to $1,200 from $950, citing the company’s growing strategic role in enterprise IT and strong positioning to capitalize on AI trends.

Analysts see ServiceNow as a standout among enterprise software providers, forecasting that the company will continue to consolidate the IT stack by offering an integrated platform that appeals to large global enterprises. Truist emphasized that macroeconomic uncertainty is creating an opportunity for ServiceNow to gain market share as businesses look to streamline operations and reduce vendor complexity.

The firm views ServiceNow as a “rare compounder” with a scalable platform that supports long-term growth through both upselling and cross-selling into its existing customer base. The analysts also noted that this year’s pullback in the stock presents a favorable entry point for investors.

Truist expects ServiceNow’s AI capabilities and platform architecture to remain key differentiators, driving durable growth across its expanding product portfolio.

ServiceNow (NYSE:NOW) stock plunged over 12% intra-day today despite the IT management software firm delivering better-than-expected fourth-quarter earnings and revenue. The sharp decline came as investors reacted to weaker-than-anticipated guidance for subscription revenue in the coming quarters.

The company reported adjusted earnings per share of $3.67 for the fourth quarter, slightly surpassing analysts’ expectations of $3.65. Revenue for the period reached $2.96 billion, in line with consensus forecasts. However, the earnings beat was marginal, marking the narrowest constant currency outperformance since the pandemic at just 0.4% above company guidance.

ServiceNow’s subscription business remained a key growth driver, with revenue from subscriptions climbing 21% year-over-year to $2.87 billion. The company also saw strong momentum in its AI-driven automation tools, which help customers streamline operations.

However, concerns mounted over its outlook. Remaining performance obligations—a crucial measure of future revenue commitments—stood at $10.27 billion at the end of the quarter, reflecting a 19% annual increase. Yet, ServiceNow’s first-quarter subscription revenue guidance of $2.995 billion to $3.00 billion fell short of the $3.04 billion analysts had projected.

For full-year 2025, the company forecasts subscription revenue between $12.64 billion and $12.68 billion, missing the Wall Street consensus of $12.83 billion. The weaker-than-expected projections overshadowed its strong Q4 performance, prompting investors to reassess the stock’s near-term growth potential.

ServiceNow (NYSE:NOW) stock plunged over 12% intra-day today despite the IT management software firm delivering better-than-expected fourth-quarter earnings and revenue. The sharp decline came as investors reacted to weaker-than-anticipated guidance for subscription revenue in the coming quarters.

The company reported adjusted earnings per share of $3.67 for the fourth quarter, slightly surpassing analysts’ expectations of $3.65. Revenue for the period reached $2.96 billion, in line with consensus forecasts. However, the earnings beat was marginal, marking the narrowest constant currency outperformance since the pandemic at just 0.4% above company guidance.

ServiceNow’s subscription business remained a key growth driver, with revenue from subscriptions climbing 21% year-over-year to $2.87 billion. The company also saw strong momentum in its AI-driven automation tools, which help customers streamline operations.

However, concerns mounted over its outlook. Remaining performance obligations—a crucial measure of future revenue commitments—stood at $10.27 billion at the end of the quarter, reflecting a 19% annual increase. Yet, ServiceNow’s first-quarter subscription revenue guidance of $2.995 billion to $3.00 billion fell short of the $3.04 billion analysts had projected.

For full-year 2025, the company forecasts subscription revenue between $12.64 billion and $12.68 billion, missing the Wall Street consensus of $12.83 billion. The weaker-than-expected projections overshadowed its strong Q4 performance, prompting investors to reassess the stock’s near-term growth potential.