ServiceNow, Inc. (NOW), headquartered in Santa Clara, California, is a leading digital workflow company that streamlines enterprise operations. It offers cloud-based solutions that automate and optimize IT service management, HR, customer service, and other business processes.

ServiceNow integrates artificial intelligence (AI) to enhance productivity, enabling predictive analytics, virtual agents, and intelligent automation across workflows. Its AI-driven platform helps organizations improve efficiency, reduce costs, and deliver faster, more consistent services, making it a core tool for digital transformation initiatives worldwide. The company has a market capitalization of $185.55 billion. 

Over the past 52 weeks, ServiceNow’s stock has gained by 6.5%. It had reached a 52-week high of $1,198.09 back in January, but is now down 26% from this high. This year, the stock is down by 16.4%. It has broadly underperformed the S&P 500 Index ($SPX), which has gained 14.3% and 9% over the same periods, respectively. 

Narrowing our attention to the company’s sector, we observe that the stock has also lagged behind the iShares Expanded Tech-Software Sector ETF (IGV), which has gained 23.2% over the past 52 weeks and 6.5% year-to-date (YTD). 

On July 23, ServiceNow reported better-than-expected second-quarter results, which led to the stock surging by 4.2% on July 24. The company’s total revenues increased by 22.5% year-over-year (YOY) to $3.22 billion, surpassing the $3.12 billion that Wall Street analysts had expected. The company cited its AI platform as a key factor in this growth. The company’s strategic partnerships and acquisitions have seemingly bolstered its market position. 

As of the end of Q2, ServiceNow’s current remaining performance obligations (cRPO) grew 24.5% YOY to $10.92 billion, which shows that the company has significant revenue left to be recognized in the near term. 

For the fiscal year 2025, ending in December 2025, Wall Street analysts expect solid growth in ServiceNow’s bottom line, forecasting a 29.4% YOY growth in its EPS to $9.32 on a diluted basis. The company has a history of surpassing consensus estimates, topping them in each of the trailing four quarters. 

Among the 42 Wall Street analysts covering ServiceNow’s stock, the consensus is a “Strong Buy.” That’s based on 33 “Strong Buy” ratings, three “Moderate Buys,” five “Hold” ratings, and one “Strong Sell” rating. 

The configuration of the ratings is less bullish than it was a month ago, with 33 “Strong Buy” ratings now, down from 34. 

This month, analysts at JMP Securities reiterated their “Market Outperform” rating on ServiceNow, giving a price target of $1,300. The rating reiteration came from the firm’s growing confidence in ServiceNow’s AI Control Tower and AI agents. JMP Securities analysts believe that the company’s AI capabilities should accelerate its growth. 

The consensus price target of $1,148.37 represents a 29.5% premium over the stock’s current levels. The street-high price target of $1,300, as given by JMP Securities analysts, reflects a 46.6% upside potential.