Key Takeaways From ServiceNow Analysts Day

• 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.

RBC Capital analysts raised their price target for ServiceNow (NYSE:NOW) to $1,210 from $1,045, reaffirming an Outperform rating on the stock. The increase reflects confidence in the company’s ability to sustain long-term growth, driven by its expanding role in enterprise operations and the ongoing integration of generative AI technologies.

ServiceNow is positioned as a gold-standard investment for the next 5-10 years, with profitable, primarily organic growth expected to continue. The company is evolving beyond its IT origins, offering a platform that enables enterprises to build custom SaaS applications for HR, finance, legal, facilities, and procurement. This broadening scope positions ServiceNow as a key player in the enterprise software market.

The $1,210 price target is based on a 19x EV/revenue multiple for 2025, representing a slight premium to peers due to ServiceNow’s superior growth and margin profile. On a free cash flow basis, this translates to a 60.5x EV/2025 FCF multiple.

With generative AI in its early stages, ServiceNow is well-positioned to capitalize on this transformative technology over the next decade, supporting its trajectory as a foundational platform for enterprise innovation.