
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc. has demonstrated strong financial performance with a subscription revenue growth of approximately 21.5% year-over-year, exceeding guidance expectations, alongside continued expansion in its cohort of large customers contributing over $5M in annual contract value. The company has notably increased its market share in the IT service management space, reaching 40% by 2024, while also ranking second in the model-driven application platforms market with a share growth from 4% in 2020 to 12% in 2024. Additionally, the recent surge in AI AgentAssist consumption, which grew more than 55 times, highlights robust usage growth and the potential for emerging monetization opportunities within ServiceNow’s innovative platform.
Bears say
ServiceNow Inc. has experienced a decline in its Rule of 40 score, which fell to 54 for FY24, indicative of slower revenue growth despite profitability gains, reflecting a concerning trend from the pandemic-driven highs of over 60. The company’s year-to-date performance has been unfavorable, with ServiceNow losing 23% and underperforming broader software sectors, amid increasing competition and potential deceleration in subscription revenue. Additional downside risks include market sentiment shifts regarding SaaS, as exemplified by peer companies exhibiting higher organic growth rates, and hiring trends that suggest a strategic retreat in growth initiatives, which could further impede ServiceNow's financial prospects.
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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