AI Impact on Enterprises: ServiceNow's CFO, Gina Mastantuono, emphasizes that AI is driving significant efficiency and automation improvements for enterprises, with the company generating $355M from internal AI initiatives and aiming for $1B in AI-related revenue by 2026.
Survey Insights: A survey of IT leaders reveals that 76% are expanding AI use cases, primarily to increase operational efficiency, with 79% reporting efficiency gains from their AI initiatives.
Enterprise vs. Consumer AI: Mastantuono highlights the differences between enterprise and consumer AI, noting that enterprise AI requires higher security and governance, and ServiceNow's unique combination of AI, data, and workflow positions it well in the market.
Market Performance: Despite strong revenue growth and operating margins, ServiceNow's share value has remained static compared to other tech sectors, as investor interest has shifted towards hardware providers rather than software companies utilizing AI.
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
Wall Street analysts forecast NOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOW is 222.81 USD with a low forecast of 172.00 USD and a high forecast of 263.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Buy
2 Hold
0 Sell
Strong Buy
Current: 125.300
Low
172.00
Averages
222.81
High
263.00
Current: 125.300
Low
172.00
Averages
222.81
High
263.00
BTIG
Buy
maintain
$200
2026-01-22
New
Reason
BTIG
Price Target
$200
AI Analysis
2026-01-22
New
maintain
Buy
Reason
BTIG keeps a Buy rating with $200 price target on ServiceNow but contends that the company continues to see strong traction with Now Assist among its larger customers, whereas smaller customers are earlier in the adoption curve, the analyst tells investors in a research note. Some customers remain cautious on Now Assist's cost, which has prompted NOW to run more pilots, accelerating evaluations and moving deals forward, BTIG adds, also stating that the stock belongs in the "Super 8", or MAG 7 + ServiceNow, ahead of its Q4 results next week.
Jefferies
Buy
downgrade
$230 -> $175
2026-01-22
New
Reason
Jefferies
Price Target
$230 -> $175
2026-01-22
New
downgrade
Buy
Reason
Jefferies lowered the firm's price target on ServiceNow to $175 from $230 but keeps a Buy rating on the shares. The firm expects ServiceNow to modestly beat on constant currency cRPO and subscription revenue, while its partner checks support at least an in-line quarter, the analyst tells investors in a research note. Buyside feedback suggests 19% constant currency subscription revenue growth will drive real enthusiasm, the firm added.
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Citi
Tyler Radke
Buy
downgrade
$235
2026-01-22
New
Reason
Citi
Tyler Radke
Price Target
$235
2026-01-22
New
downgrade
Buy
Reason
Citi analyst Tyler Radke lowered the firm's price target on ServiceNow to $235 from $250.60 and keeps a Buy rating on the shares.
BMO Capital
Outperform
to
NULL
downgrade
$230 -> $175
2026-01-21
New
Reason
BMO Capital
Price Target
$230 -> $175
2026-01-21
New
downgrade
Outperform
to
NULL
Reason
BMO Capital lowered the firm's price target on ServiceNow to $175 from $230 but keeps an Outperform rating on the shares. The company sees Q4 upside tension to constant-currency growth for both subscription revenue and CRPO, and believes that ServiceNow will guide roughly in line with current FY26 consensus for revenue growth rates, the analyst tells investors in a research note. The earnings report can also help alleviate concerns around durability of growth, BMO added.
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.
