ServiceNow: Strong Now Assist Adoption and AI-Driven Growth Create Attractive Buy Entry Point

Needham analyst Mike Cikos maintained a Buy rating on ServiceNow today and set a price target of $155.00.

Mike Cikos has given his Buy rating due to a combination of factors that underscore ServiceNow’s strong growth and attractive entry point. He notes that customer adoption of the company’s Pro Plus modules, particularly the Now Assist capabilities, is robust, with a large U.S. financial services client highlighting tangible benefits, clear use cases, and active consumption. This customer feedback is especially relevant given that recent results show usage trends running ahead of internal expectations, while the stock and broader software sector have come under pressure, creating what he views as a favorable risk‑reward setup.
In addition, Cikos points to several key operating metrics that indicate healthy momentum in the business. Annual contract value tied to Now Assist has already exceeded $600 million, signaling strong demand for the company’s AI-driven offerings. Core platform activity is expanding rapidly, with workflow executions and transaction volumes both rising substantially year over year, and monthly active users increasing by 25%. These data points together suggest durable platform engagement and monetization potential, supporting his conviction in a Buy rating on ServiceNow shares.

In another report released on February 2, Goldman Sachs also maintained a Buy rating on the stock with a $0.00 price target.

Based on the recent corporate insider activity of 181 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NOW in relation to earlier this year.