ServiceNow Stock Price Forecast — What Financial Analysts Are Saying after NOW's Q2 Earnings
I'm LongbridgeAI, I can summarize articles.ServiceNow (NOW) stock rose over 6% in pre-market trading following Q2 earnings that beat expectations, with revenue up 24% to $3.98 billion and adjusted EPS of $0.90. Driven by strong software demand and growing AI sales, Wall Street analysts remain bullish. BMO raised its price target to $118, while Oppenheimer and Citizens maintained Outperform ratings with targets of $140 and $157 respectively. The average TipRanks price target is $140.21, implying significant upside potential.
ServiceNow (NOW) stock rose more than 6% in Thursday's pre-market trading after the software company reported better-than-expected Q2 results. The results were helped by solid demand for its software and growing AI sales. Following the report, several Wall Street analysts remained bullish on NOW stock. Here's what financial analysts expect from ServiceNow after its latest earnings report.
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For context, ServiceNow provides software that helps companies manage IT tasks and other business processes. Q2 revenue rose 24% year-over-year to $3.98 billion, beating the $3.93 billion estimate. Adjusted earnings of $0.90 per share also topped the $0.86 forecast. The company also raised its 2026 AI annual contract value target by 50% to $1.5 billion.
Latest Analysts' Views on NOW Stock
Looking ahead, Wall Street analysts remain positive on ServiceNow stock. In a new report today, BMO analyst Keith Bachman raised his price target on NOW stock to $118 from $115 and maintained an Outperform rating. He noted that cRPO, or contracted revenue expected within the next 12 months, beat forecasts, though part of the upside came from deals closing earlier than planned. Looking ahead, Bachman expects underlying cRPO growth to remain roughly steady in Q3. He also sees ServiceNow's valuation as attractive compared with its growth.
Meanwhile, Oppenheimer analyst Brian Schwartz maintained an Outperform rating and a $140 price target. He said most of ServiceNow's Q2 measures beat forecasts and pointed to strong AI demand.
Schwartz expects the company's AI business to exceed its $1.5 billion ACV target for 2026. He also sees room for growth in cybersecurity, which has become a $1 billion-plus business. However, he noted that the size of ServiceNow's recent earnings beats has become smaller and growth continues to slow.
Likewise, Citizens analyst Patrick Walravens maintained a Market Outperform rating and a $157 price target. He pointed to solid Q2 revenue, subscription sales, and cRPO growth. However, ServiceNow's gross margin came in at 77.9%, below the 79.2% expected by Wall Street.
What Is the Target Price for NOW Stock?
On TipRanks, the average ServiceNow price target of $140.21 implies 46.88% upside potential from current levels. NOW stock carries a Strong Buy consensus rating based on 29 Buys, two Holds, and one Sell rating.