Analyst Karl Keirstead of UBS maintained a Buy rating on ServiceNow, retaining the price target of $170.00.
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Karl Keirstead has given his Buy rating due to a combination of factors that underscore ServiceNow’s solid growth and valuation profile. He views the company’s projected organic revenue expansion of roughly 18–19% as robust for a business already approaching $14 billion in annual sales, and expects actual results to gravitate back toward the 20% range. While near-term guidance, especially for the first half of 2026, is somewhat cautious and implies a need for growth to pick up later in the year, he interprets this prudence largely as a function of macro uncertainty and scale rather than any structural weakness or AI-driven disruption to the business. In his assessment, the recent share-price pullback following only modest earnings upside appears somewhat overdone relative to the underlying fundamentals.
Karl also points to several specific positives that support the Buy thesis. The company’s AI-related offerings, such as Now Assist, are already generating meaningful annual contract value, and although they are not yet visibly accelerating overall company growth, they reinforce ServiceNow’s positioning in next-generation workflows. He notes that revenue expectations for the Moveworks acquisition and the modest margin impact from the planned Armis deal are manageable and less negative than investors had feared, while partnerships with major AI providers like OpenAI and Anthropic add strategic credibility. On his revised, higher free cash flow forecasts, the stock’s 2026 valuation premium versus peers is, in his view, warranted by ServiceNow’s stronger and more durable growth, supporting his unchanged price target and Buy rating.
Keirstead covers the Technology sector, focusing on stocks such as Microsoft, ServiceNow, and Oracle. According to TipRanks, Keirstead has an average return of 13.6% and a 62.34% success rate on recommended stocks.
In another report released today, Needham also maintained a Buy rating on the stock with a $155.00 price target.