ServiceNow (NYSE: NOW) Stock: AI Adoption Drives Analyst Price-Target Hikes
Key points
- Bernstein raised its price target for ServiceNow (NYSE: NOW) to $266 from $248, citing growing adoption of the company’s AI-native products.
- ServiceNow targets more than $30 billion in annual subscription revenue by 2030, with AI expected to become an important growth driver.
- TD Cowen also raised its target to $165, citing customer upgrades, security products, cross-selling opportunities and U.S. federal demand.
ServiceNow (NYSE: NOW) provides cloud-based software that helps businesses manage workflows, data and approvals. The company is increasingly integrating AI agents into its platform.
Bernstein raised its ServiceNow price target to a Street-high $266 from $248 and maintained an Outperform rating. The firm cited growing adoption of ServiceNow’s AI-native products, including adoption by approximately 50% of customers during renewal cycles. At the cited share price of $145.36, the new target implies potential upside of approximately 83%.
ServiceNow aims to generate more than $30 billion in annual subscription revenue by 2030. Its Now Assist product line entered 2026 with more than $750 million in annual contract value, and the company expects AI products to account for more than 30% of total annual contract value by 2030.
TD Cowen raised its ServiceNow price target to $165 from $140 and maintained a Buy rating. Analyst Derrick Wood cited customer upgrades, ServiceNow’s security position, cross-selling opportunities and demand from the U.S. federal government as potential growth drivers.
ServiceNow shares closed at $145.36 in the cited market snapshot, gaining $3.39, or 2.39%. The stock’s 52-week trading range was $81.24 to $192.97, while the company’s market capitalization was approximately $150.3 billion. These figures should be weighed against ServiceNow’s growth expectations, elevated valuation and the risk that enterprise AI adoption develops more slowly than anticipated.
Read the rest, free
Pop in your email to read every article in full and search any company. It takes five seconds.
You'll get Gro's newsletter too. Leave any time in one click.
