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ServiceNow Price Target Raised to $160 as Analyst Highlights Growth Catalysts

BullishMedium impact
NOW$138.61 −1.22%

Analyst Stefan Slowinski raised the price target on ServiceNow, Inc. (NYSE:NOW) to $160 from $140 while keeping an Outperform rating. The target increase reflects solid subscription momentum alongside expanding business in artificial intelligence, cybersecurity, and government contracting. Shares traded at $139.20, down 0.78% today.

ServiceNow updated its fiscal 2026 outlook to reflect organic subscription revenue growth holding steady at around 19% through the end of the year. Current remaining performance obligation growth is expanding at a matching rate. Looking ahead to fiscal 2027, revenue expansion could speed up further, backed by projections that artificial intelligence products will generate roughly 9% of annual recurring revenue by year-end and security offerings could make up nearly 10% of revenue in 2027.

Key indicators for the business include subscription revenue momentum, federal government booking trends, adoption rates for Assist tools, and sales performance across cybersecurity services. If these segments continue expanding, they may help accelerate overall revenue growth into fiscal 2027.

Key points

  • Analyst Stefan Slowinski reiterated an Outperform rating on ServiceNow, Inc. (NYSE:NOW) and raised the price target to $160 from $140.
  • ServiceNow expects organic subscription growth to remain around 19% through the end of fiscal 2026.
  • Artificial intelligence revenue is projected to reach approximately 9% of annual recurring revenue by the end of the year.
  • Security offerings could account for nearly 10% of company revenue in fiscal 2027.
  • Demand from the U.S. federal government and adoption of Assist products are showing positive momentum.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

What is the new price target for ServiceNow stock?

The price target for ServiceNow stock was raised to $160 from $140, while the Outperform rating was reiterated.

How much artificial intelligence revenue does ServiceNow expect?

ServiceNow expects artificial intelligence products to generate roughly 9% of its annual recurring revenue by the end of the year.

What is ServiceNow's subscription growth rate for 2026?

ServiceNow expects organic subscription revenue growth to hold steady at approximately 19% through the end of fiscal 2026.