
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc has shown strong growth in its large customer segment, with an increase in both the number of customers contributing over $5M in Annual Contract Value (ACV) and their average ACV, indicating successful upselling and deeper platform adoption. The company has also achieved a full-year subscription revenue growth rate of approximately 20%, reflecting a slight improvement from previous estimates, supported by a significant rise in AI usage and the expansion of their product offerings into new functional areas. Additionally, ServiceNow has maintained a leading position in the IT service management (ITSM) market, increasing its market share from 34% in 2020 to 40% in 2024, while also making notable gains in the model-driven application platforms and human capital management markets.
Bears say
ServiceNow Inc. reported a Rule of 40 score of 54 for FY24, marking a decline from the 60+ scores experienced during the COVID period and indicating a deceleration in revenue growth, despite some gains in profitability that mirror results from the previous two fiscal years. The company has also faced significant challenges this year, with its stock down 23% year-to-date, underperforming both the SaaS index and a broader software index, amid concerns over subscription revenue deceleration and increasing competition from key players like Microsoft. Factors contributing to this negative outlook include fears surrounding the future of SaaS in light of AI advancements, weakening organic revenue growth compared to competitors, and the departure of long-time CFO Bryan Hill, which may further erode investor confidence.
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
Start investing in ServiceNow (NOW)
Order type
Buy in
Order amount
Est. shares
0 shares