NOW Should I Buy
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ServiceNow Inc (NOW) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. Despite short-term technical weakness, the company's strong financial growth, positive AI-driven market positioning, and significant congressional purchases make it an attractive long-term investment.
The technical indicators suggest a bearish short-term trend. The MACD is negative and contracting (-0.675), RSI is neutral at 34.553, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 99.963, with resistance at 109.005. The stock is trading close to its support level, which could offer a potential entry point for long-term investors.
Strong Q4 financial performance with 20.66% YoY revenue growth and 4.43% net income growth.
Positive AI-driven growth outlook, with analysts projecting 20% organic growth annually through
Congressional members have made significant purchases of the stock recently, indicating confidence in its long-term potential.
Bearish technical indicators and short-term market sentiment.
Lowered price targets from multiple analysts, reflecting cautious near-term expectations.
Slight drop in gross margin (-2.58% YoY) in Q4 2025.
In Q4 2025, ServiceNow reported a 20.66% YoY revenue increase to $3.57 billion, a 4.43% YoY increase in net income to $401 million, and a 2.70% YoY increase in EPS to 0.38. However, gross margin decreased slightly to 76.63% (-2.58% YoY). Overall, the company demonstrated strong growth despite margin pressure.
Analysts maintain a generally positive outlook on ServiceNow, with most firms retaining Buy or Outperform ratings. Price targets have been lowered across the board (ranging from $170 to $216), but analysts highlight strong AI-driven growth opportunities and attractive valuation levels. Goldman Sachs added ServiceNow to its US Conviction List, citing sustained 20% organic growth potential.
