
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc has demonstrated robust growth, with a significant increase in its cohort of large customers, leading to a projected full-year subscription revenue growth of approximately 20%. The company's market share in the IT service management (ITSM) sector has notably risen from 34% in 2020 to 40% in 2024, establishing it as a leading player in this market. Additionally, ServiceNow's expansion into model-driven application platforms reflects impressive advancements, growing its share from 4% in 2020 to 12% in 2024 while also achieving a year-over-year subscription revenue growth of 21.5% to $3,299 million, exceeding prior guidance and consensus expectations.
Bears say
ServiceNow Inc. has reported a decline in its Rule of 40 score to 54 for FY24, a significant drop from the 60+ levels observed during the COVID years, indicating a slowdown in revenue growth that is only partially offset by improved profitability metrics. The company, along with the broader SaaS index, has underperformed year-to-date, with losses of 23%, highlighting increased competitive pressures and concerns regarding the future of SaaS amidst AI advancements. Additionally, negative factors such as slowing organic revenue growth, declining job postings, and uncertainties surrounding leadership transitions contribute to a bearish outlook for the company's stock performance.
This aggregate rating is based on analysts' research of ServiceNow and is not a guaranteed prediction by Public.com or investment advice.
ServiceNow (NOW) Analyst Forecast & Price Prediction
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