ServiceNow Upgraded to Outperform by BNP Paribas Amid Sell-Off Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NOW?
Source: seekingalpha
- Investment Opportunity Emerges: BNP Paribas upgraded ServiceNow to Outperform, citing the recent share price decline (down 23% YTD) as a favorable risk/reward opportunity, indicating a favorable shift in market perception towards the company.
- Price Target Increase: Analyst Stefan Slowinski raised the price target for ServiceNow from $120 to $140, reflecting confidence in the company's future growth potential, particularly in core business stabilization and AI monetization capabilities.
- Revenue Growth Expectations: Slowinski anticipates that ServiceNow could achieve a roughly 20% organic revenue growth rate by fiscal 2026, up from the 18% guidance provided in Q1, indicating potential for increased customer engagement and product upgrades.
- Enhanced Market Competitiveness: The analyst believes that as demand for Pro Plus upgrades increases and customers return from Assist Pack purchases, ServiceNow's market competitiveness will strengthen, potentially leading to higher revenue growth.
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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: 113.620
Low
172.00
Averages
222.81
High
263.00
Current: 113.620
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.
ServiceNow Upgraded to Outperform by BNP Paribas Amid Sell-Off Opportunity
- Investment Opportunity Emerges: BNP Paribas upgraded ServiceNow to Outperform, citing the recent share price decline (down 23% YTD) as a favorable risk/reward opportunity, indicating a favorable shift in market perception towards the company.
- Price Target Increase: Analyst Stefan Slowinski raised the price target for ServiceNow from $120 to $140, reflecting confidence in the company's future growth potential, particularly in core business stabilization and AI monetization capabilities.
- Revenue Growth Expectations: Slowinski anticipates that ServiceNow could achieve a roughly 20% organic revenue growth rate by fiscal 2026, up from the 18% guidance provided in Q1, indicating potential for increased customer engagement and product upgrades.
- Enhanced Market Competitiveness: The analyst believes that as demand for Pro Plus upgrades increases and customers return from Assist Pack purchases, ServiceNow's market competitiveness will strengthen, potentially leading to higher revenue growth.
See More
Carahsoft Expands Partnership with ServiceNow to Broaden AI Platform Access
- Partnership Expansion: The partnership between Carahsoft and ServiceNow has been expanded to allow the ServiceNow AI Platform to reach over 10,000 resellers across healthcare, financial services, and critical infrastructure, significantly enhancing market penetration.
- Meeting Market Demands: Carahsoft's network reaches organizations with stringent compliance and security requirements, enabling ServiceNow to directly engage these customers and meet their technology procurement preferences, thereby driving sales growth.
- Accelerating Technology Adoption: By leveraging Carahsoft's specialized reseller and consulting partners, ServiceNow's AI-driven platform will be adopted more rapidly by clients across various industries, simplifying acquisition processes and providing greater flexibility, which enhances customer experience.
- Enhanced Industry Influence: This collaboration not only strengthens Carahsoft's leadership in government IT distribution but also extends its influence into emerging markets like healthcare and finance, further solidifying its position in complex procurement demands.
See More
Nancy Tengler Discusses AI and Software Stock Investments
- Investment Strategy Shift: Nancy Tengler indicates that as investors return to fundamentals, she has increased her positions in software stocks like Microsoft and ServiceNow, despite their ongoing market pressures, reflecting confidence in their long-term growth potential.
- Market Performance Analysis: She highlights that Adobe has seen a negative cumulative return of 30% over the past five years, despite its CEO receiving $220 million, illustrating the importance of selecting companies with sustainable growth capabilities.
- Cybersecurity Stock Increase: During the market sell-off, Tengler also added to positions in cybersecurity firms like CrowdStrike, suggesting optimism about their future performance driven by the increasing demand for cybersecurity solutions.
- Return to Fundamentals: Tengler emphasizes the need for investors to focus on earnings, particularly noting the strong performance of companies like Broadcom, Nvidia, and AMD over the past three to five years, advising against being swayed by short-term market sentiments and instead concentrating on long-term investment value.
See More
Analysis of Private Equity and Credit Crisis
- Market Panic Intensifies: The private equity and private credit sectors are facing potential risks of up to $3 trillion, reminiscent of the 2007-2009 financial crisis, as market fears about the liquidity and value of these assets lead to investor pessimism.
- Investor Redemption Pressure: Concerns over enterprise software companies have prompted investors to demand redemptions, putting liquidity strains on private credit firms like Blue Owl and Blackstone, which, despite being able to meet debt obligations, struggle with market confidence in their future performance.
- Asset Management Missteps: Private equity firms have failed to take their portfolio companies public in a timely manner, raising doubts about their management capabilities, especially as enterprise software companies underperform in the current market environment, exacerbating market unease.
- Liquidity vs. Credit Issues: While liquidity concerns are fueling panic, they pose a lesser threat to the financial system compared to credit crises; most private equity firms' assets still hold real value, but lack market pricing due to management hesitance to sell.
See More
Alphabet and Nvidia's AI Potential
- Alphabet's AI Edge: Alphabet's robust growth in AI, particularly through its Google Cloud and Google Gemini, positions it significantly in the market, expected to drive future revenue growth for the company.
- Waymo's Growth Potential: As a leader in self-driving technology, Waymo is in a rapidly growing market and is anticipated to become a major growth driver for Alphabet in the coming years, further enhancing the company's market value.
- Nvidia's Continuous Innovation: Nvidia's upcoming Rubin GPU platform, which combines its Vera CPUs with Rubin GPUs, showcases a tenfold performance increase despite higher power consumption, likely attracting numerous customers and solidifying its dominance in the AI chip market.
- ServiceNow's Market Outlook: ServiceNow achieved a 20.5% revenue growth in Q4 2025, with the CEO predicting it could become a $1 trillion company, highlighting its strong growth potential in the enterprise software market.
See More
Analysis of Investment Opportunities in Tech Stocks
- Google's AI Advantage: Alphabet (GOOGL) boasts a market cap of $3.7 trillion, and with the rapid growth of its Google Cloud and AI chips, it is expected to maintain a dominant position in the AI market, driving future profitability.
- Nvidia's Leading Innovation: Nvidia (NVDA) has a market cap of $4.4 trillion, and its upcoming Rubin GPU platform is projected to deliver a tenfold performance increase despite higher power consumption, which will attract many customers and solidify its leadership in the AI chip market.
- ServiceNow's Market Potential: ServiceNow (NOW) has a market cap of approximately $119 billion, and despite facing challenges from the so-called SaaSpocalypse, its revenue grew by 20.5% year-over-year in Q4 2025, indicating strong market demand, with the CEO believing it could become a trillion-dollar company.
- Future of Workflow Automation: ServiceNow's AI platform is utilized by over 8,800 customers, including more than 85% of Fortune 500 companies, highlighting its significant position and ongoing growth potential in the enterprise software market.
See More
ServiceNow Upgraded to Outperform by BNP Paribas Amid Sell-Off Opportunity
- Investment Opportunity Emerges: BNP Paribas upgraded ServiceNow to Outperform, citing the recent share price decline (down 23% YTD) as a favorable risk/reward opportunity, indicating a favorable shift in market perception towards the company.
- Price Target Increase: Analyst Stefan Slowinski raised the price target for ServiceNow from $120 to $140, reflecting confidence in the company's future growth potential, particularly in core business stabilization and AI monetization capabilities.
- Revenue Growth Expectations: Slowinski anticipates that ServiceNow could achieve a roughly 20% organic revenue growth rate by fiscal 2026, up from the 18% guidance provided in Q1, indicating potential for increased customer engagement and product upgrades.
- Enhanced Market Competitiveness: The analyst believes that as demand for Pro Plus upgrades increases and customers return from Assist Pack purchases, ServiceNow's market competitiveness will strengthen, potentially leading to higher revenue growth.
See More
Carahsoft Expands Partnership with ServiceNow to Broaden AI Platform Access
- Partnership Expansion: The partnership between Carahsoft and ServiceNow has been expanded to allow the ServiceNow AI Platform to reach over 10,000 resellers across healthcare, financial services, and critical infrastructure, significantly enhancing market penetration.
- Meeting Market Demands: Carahsoft's network reaches organizations with stringent compliance and security requirements, enabling ServiceNow to directly engage these customers and meet their technology procurement preferences, thereby driving sales growth.
- Accelerating Technology Adoption: By leveraging Carahsoft's specialized reseller and consulting partners, ServiceNow's AI-driven platform will be adopted more rapidly by clients across various industries, simplifying acquisition processes and providing greater flexibility, which enhances customer experience.
- Enhanced Industry Influence: This collaboration not only strengthens Carahsoft's leadership in government IT distribution but also extends its influence into emerging markets like healthcare and finance, further solidifying its position in complex procurement demands.
See More
Nancy Tengler Discusses AI and Software Stock Investments
- Investment Strategy Shift: Nancy Tengler indicates that as investors return to fundamentals, she has increased her positions in software stocks like Microsoft and ServiceNow, despite their ongoing market pressures, reflecting confidence in their long-term growth potential.
- Market Performance Analysis: She highlights that Adobe has seen a negative cumulative return of 30% over the past five years, despite its CEO receiving $220 million, illustrating the importance of selecting companies with sustainable growth capabilities.
- Cybersecurity Stock Increase: During the market sell-off, Tengler also added to positions in cybersecurity firms like CrowdStrike, suggesting optimism about their future performance driven by the increasing demand for cybersecurity solutions.
- Return to Fundamentals: Tengler emphasizes the need for investors to focus on earnings, particularly noting the strong performance of companies like Broadcom, Nvidia, and AMD over the past three to five years, advising against being swayed by short-term market sentiments and instead concentrating on long-term investment value.
See More
Analysis of Private Equity and Credit Crisis
- Market Panic Intensifies: The private equity and private credit sectors are facing potential risks of up to $3 trillion, reminiscent of the 2007-2009 financial crisis, as market fears about the liquidity and value of these assets lead to investor pessimism.
- Investor Redemption Pressure: Concerns over enterprise software companies have prompted investors to demand redemptions, putting liquidity strains on private credit firms like Blue Owl and Blackstone, which, despite being able to meet debt obligations, struggle with market confidence in their future performance.
- Asset Management Missteps: Private equity firms have failed to take their portfolio companies public in a timely manner, raising doubts about their management capabilities, especially as enterprise software companies underperform in the current market environment, exacerbating market unease.
- Liquidity vs. Credit Issues: While liquidity concerns are fueling panic, they pose a lesser threat to the financial system compared to credit crises; most private equity firms' assets still hold real value, but lack market pricing due to management hesitance to sell.
See More
Alphabet and Nvidia's AI Potential
- Alphabet's AI Edge: Alphabet's robust growth in AI, particularly through its Google Cloud and Google Gemini, positions it significantly in the market, expected to drive future revenue growth for the company.
- Waymo's Growth Potential: As a leader in self-driving technology, Waymo is in a rapidly growing market and is anticipated to become a major growth driver for Alphabet in the coming years, further enhancing the company's market value.
- Nvidia's Continuous Innovation: Nvidia's upcoming Rubin GPU platform, which combines its Vera CPUs with Rubin GPUs, showcases a tenfold performance increase despite higher power consumption, likely attracting numerous customers and solidifying its dominance in the AI chip market.
- ServiceNow's Market Outlook: ServiceNow achieved a 20.5% revenue growth in Q4 2025, with the CEO predicting it could become a $1 trillion company, highlighting its strong growth potential in the enterprise software market.
See More
Analysis of Investment Opportunities in Tech Stocks
- Google's AI Advantage: Alphabet (GOOGL) boasts a market cap of $3.7 trillion, and with the rapid growth of its Google Cloud and AI chips, it is expected to maintain a dominant position in the AI market, driving future profitability.
- Nvidia's Leading Innovation: Nvidia (NVDA) has a market cap of $4.4 trillion, and its upcoming Rubin GPU platform is projected to deliver a tenfold performance increase despite higher power consumption, which will attract many customers and solidify its leadership in the AI chip market.
- ServiceNow's Market Potential: ServiceNow (NOW) has a market cap of approximately $119 billion, and despite facing challenges from the so-called SaaSpocalypse, its revenue grew by 20.5% year-over-year in Q4 2025, indicating strong market demand, with the CEO believing it could become a trillion-dollar company.
- Future of Workflow Automation: ServiceNow's AI platform is utilized by over 8,800 customers, including more than 85% of Fortune 500 companies, highlighting its significant position and ongoing growth potential in the enterprise software market.
See More
