ServiceNow and SAP Rated Resilient Amid AI Dominance, Demand Improves
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Source: seekingalpha
- Software Resilience: BNP Paribas analyst Stefan Slowinski noted that despite major hyperscalers dominating in AI, ServiceNow and SAP are viewed as resilient software companies, showing signs of improving demand, indicating their strong competitive position in the market.
- Market Expectation Shift: Slowinski lowered ServiceNow's price target from $186 to $120, reflecting a cautious outlook on its future performance, while maintaining a $632 target for Microsoft, indicating confidence in that company.
- Survey Results Warning: The January survey revealed a deterioration in companies like Datadog and Databricks, which analysts found surprising, suggesting a shift to negative sentiment in the software sector that could impact future financial outlooks.
- Geopolitical Impact: With increasing geopolitical uncertainty, analysts fear that companies reporting at the end of January may struggle to recover performance in the crucial FQ4, particularly in the European market, potentially leading to cautious fiscal outlooks.
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Analyst Views on NOW
Wall Street analysts forecast NOW stock price to rise
32 Analyst Rating
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 114.880
Low
172.00
Averages
222.81
High
263.00
Current: 114.880
Low
172.00
Averages
222.81
High
263.00
About NOW
ServiceNow, Inc. provides an artificial intelligence (AI) platform for business transformation. The Company’s AI platform connects people, processes, data, and devices to increase productivity and maximize business outcomes. Its intelligent platform, the Now Platform, is a cloud-based solution that helps enterprises and organizations across public and private sectors digitize workflows. The workflow applications built on the Now Platform are organized into four primary areas: Technology, CRM and Industry, Core Business and Creator. Its products include IT Service Management, IT Operations Management, HR Service Delivery, ServiceNow AI Agents, AI Experience, Build Agent, ServiceNow AI Control Tower, AI Agent Fabric, RaptorDB, Workflow Data Fabric, Workplace Service Delivery, ServiceNow Platform Encryption, Telecommunications Service Operations Management, and others. The Company also offers identity security, helping organizations secure access across the enterprise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep the federal funds target range unchanged at the upcoming FOMC meeting, even as the core PCE price index remains above target levels, indicating persistent inflationary pressures.
- Airline Stock Recovery: Delta Air Lines saw its stock rise over 6% after raising its Q1 revenue forecast, indicating signs of recovery in the airline sector amid rising fuel costs, with travel and hotel stocks also benefiting from increased bookings.
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- Fed Policy Expectations: The market widely anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming FOMC meeting, despite the core PCE price index exceeding target levels, indicating persistent inflation pressures that may influence future monetary policy.
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- Fed Policy Expectations: The market widely anticipates that the Fed will keep rates unchanged at the upcoming FOMC meeting, despite the core PCE price index standing at 3.1%, significantly above the 2.0% target, indicating a likely continued wait-and-see approach in response to economic slowdown.
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides investors with valuable insights for technical analysis, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting the liquidity and market performance of the fund.
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- Analyst Rating Upgrade: BNP Paribas Exane's analyst Stefan Slowinski upgraded ServiceNow's rating from hold to buy, raising the price target from $120 to $140, reflecting confidence in the company's growth potential.
- Revenue Growth Expectations: Slowinski anticipates that ServiceNow's subscription revenue will increase by approximately 20% this year compared to last year, indicating positive progress in core business stabilization and monetization of AI functionalities.
- AI Competitive Edge: ServiceNow's aggressive adoption of AI technology, with its latest offerings focusing on active AI assistance, positions the company favorably to meet modern enterprise needs, warranting a fresh look from investors.
See More
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- Analyst Upgrade: BNP Paribas Exane's analyst Stefan Slowinski upgraded ServiceNow's rating from neutral to outperform, raising the price target from $120 to $140, reflecting confidence in the company's future performance.
- Revenue Growth Outlook: Slowinski anticipates a roughly 20% year-over-year increase in ServiceNow's subscription revenue this year, indicating improvements in the company's core business stability and profitability within the software sector.
- AI Technology Edge: ServiceNow's enthusiastic adoption of artificial intelligence, with its latest offerings focusing on active AI assistance, aligns well with modern enterprise needs, thereby enhancing its competitive position in the market.
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