In a report released today, Tyler Radke from Citi maintained a Buy rating on ServiceNow, with a price target of $250.60.
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Tyler Radke has given his Buy rating due to a combination of factors that point to a favorable risk-reward profile for ServiceNow’s stock. He expects the upcoming quarter to be particularly strong, supported by signs of incremental budget releases, early indications of a solid quarter-end, and healthier sales pipelines extending into 2026. In his view, the market is currently pricing the shares at unusually low valuation levels, comparable to prior cycle troughs, which does not fully reflect the company’s fundamental trajectory.
Radke also highlights that consensus appears to be underappreciating ServiceNow’s ability to sustain robust earnings growth in the low-20% range, alongside roughly 20% annual revenue increases and ongoing margin gains. He anticipates that a strong fourth-quarter finish, combined with accelerating contributions from AI-related offerings and consumption-based revenue next year, could act as a key turning point for the stock. Together, these elements underpin his expectation of substantial potential upside and support his Buy recommendation.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $205.00 price target.