Should You Buy ServiceNow Inc (NOW) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
129.620
1 Day change
-1.65%
52 Week Range
234.080
Analysis Updated At
2026/01/26
ServiceNow Inc (NOW) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock demonstrates strong long-term growth potential, supported by positive financial performance, favorable analyst sentiment, and significant congressional buying activity. While technical indicators are mixed, the upcoming earnings report and AI-driven growth trends present an opportunity for long-term value creation.
Technical Analysis
The technical indicators are mixed. The MACD is below 0 and negatively contracting, suggesting bearish momentum. The RSI is neutral at 46.453, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support and resistance levels are S1: 125.643 and R1: 143.65. The stock is trading slightly below the pivot level of 134.646, indicating a cautious entry point.
Options Data
Bullish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Technical Summary
Sell
12
Buy
2
Positive Catalysts
2026/01/26 03:15:27
Strong financial performance in Q3 2025, with revenue up 21.81% YoY and net income up 16.20% YoY.
Congressional trading data shows significant buying activity, indicating confidence in the stock.
Analysts maintain a Buy rating with expectations of favorable Q4 2025 earnings and strong AI-driven growth trends.
ServiceNow is positioned as part of the 'Super 8' alongside major tech players, highlighting its strategic importance.
Neutral/Negative Catalysts
2026/01/26 03:15:27
Mixed technical indicators with bearish moving averages and a MACD below
Concerns about AI disruption and cost-related caution among smaller customers.
Recent price target reductions by analysts, reflecting near-term valuation adjustments.
Financial Performance
In Q3 2025, ServiceNow reported strong financial growth: Revenue increased by 21.81% YoY to $3.407 billion, net income rose by 16.20% YoY to $502 million, and EPS grew by 17.07% YoY to 0.48. However, gross margin decreased slightly to 77.28%, down 2.33% YoY.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts maintain a generally positive outlook with Buy ratings, despite recent price target reductions. Key expectations include a modest Q4 earnings beat and strong subscription revenue growth of 19% in constant currency. Analysts view ServiceNow as a long-term growth story, driven by AI adoption and strategic positioning in the tech sector.
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 USD and a high forecast of 263 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 USD and a high forecast of 263 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: 131.800
Low
172
Averages
222.81
High
263
Current: 131.800
Low
172
Averages
222.81
High
263
BTIG
Buy
maintain
$200
AI Analysis
2026-01-22
Reason
BTIG
Price Target
$200
AI Analysis
2026-01-22
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
Reason
Jefferies
Price Target
$230 -> $175
2026-01-22
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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