
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc. demonstrated robust growth in its 4QCY25 earnings, with an impressive $600 million in Annual Contract Value (ACV) for Now Assist, alongside a significant year-over-year increase in workflow count from 60 billion to 80 billion and transaction volume growing from 4.8 trillion to 6.4 trillion. The company reported a 25% rise in Monthly Active Users, highlighting strong user engagement and market penetration, while its remaining performance obligations (cRPO) grew 21% year-over-year, surpassing initial guidance partly due to the Moveworks acquisition. ServiceNow's revenues are projected to exceed $15 billion in CY26, supported by expanding free cash flow margins and bolstered opportunities arising from advancements in Generative AI.
Bears say
ServiceNow Inc faces significant downside risks that contribute to a negative outlook for its stock, including a potential decline in its premium enterprise value to revenue multiple due to shifts in market sentiment and intensified competition from major players like Microsoft. Moreover, the company may experience a faster-than-expected deceleration in subscription revenue growth, coupled with diminishing benefits from transitioning Data Center customers to Cloud services. Important metrics such as Current Remaining Performance Obligations, Large Customer Growth, and Free Cash Flow Margin are showing signs of deterioration, which could adversely affect investor sentiment and further compress the valuation multiple for ServiceNow's shares.
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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