ServiceNow: Strengthening Its Operational Backbone With Growing AI Adoption and Recurring Demand

Mike Cikos, an analyst from Needham, maintained the Buy rating on ServiceNow. The associated price target remains the same with $155.00.

Mike Cikos has given his Buy rating due to a combination of factors highlighted in recent customer conversations, which point to strong adoption of ServiceNow’s Pro Plus and Now Assist capabilities. A key customer reported robust usage of these embedded AI features without disrupting existing workflows, and has already purchased additional credits, indicating early evidence of healthy, repeat demand.

These discussions also reinforced the view that ServiceNow is becoming an increasingly central “operational backbone” as organizations consolidate spend onto its platform. Customers emphasized the platform’s wide functional coverage, growing share of their IT budgets as they seek more value, and proven ability to scale, all of which strengthen ServiceNow’s competitive moat and support Cikos’s positive, long-term outlook on the stock.

Cikos covers the Technology sector, focusing on stocks such as MongoDB, ServiceNow, and Okta. According to TipRanks, Cikos has an average return of 6.1% and a 44.54% success rate on recommended stocks.

In another report released on February 6, TipRanks – Google also reiterated a Buy rating on the stock with a $117.00 price target.