In a report released today, Peter Weed from Bernstein maintained a Buy rating on ServiceNow, with a price target of $1,093.00.
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Peter Weed’s rating is based on ServiceNow’s impressive performance in Q3’25, where the company demonstrated resilience despite macroeconomic challenges. ServiceNow achieved a notable revenue growth of 20.3% year-over-year, surpassing expectations, and managed to raise its full-year guidance despite facing headwinds like US Federal department churn and government spending uncertainties. This indicates strong operational execution and a positive outlook for future growth.
Furthermore, the company is capitalizing on the increasing demand for AI solutions, with a significant number of customers adopting their AI offerings, contributing to a substantial increase in annual contract value. ServiceNow’s strategic positioning as a comprehensive AI workflow platform, rather than just a collection of one-off solutions, strengthens its competitive edge. The company’s ability to integrate AI into its core operations and its focus on long-term free cash flow margin expansion further justify the Buy rating.
Based on the recent corporate insider activity of 179 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.