Saiyi He, an analyst from CMB International Securities, maintained the Buy rating on ServiceNow. The associated price target is $1,180.00.
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Saiyi He has given his Buy rating due to a combination of factors including ServiceNow’s impressive financial performance and strategic advancements. The company’s third-quarter results for 2025 showcased a significant 22% year-over-year increase in total revenue, reaching $3.41 billion, which aligns with market expectations. Additionally, the non-GAAP operating income rose by 31% year-over-year, surpassing consensus estimates by 11%, largely due to efficiency gains driven by artificial intelligence and effective cost management.
ServiceNow’s strong execution in subscription revenue, which grew by 21.5% year-over-year, and a 21% increase in current remaining performance obligations (cRPO) further support the Buy rating. The company’s AI products are on track to achieve substantial growth, with an anticipated annual contract value (ACV) of over $500 million by the end of FY25. Moreover, the expansion of non-GAAP operating margin by 2.3 percentage points to 33.5% in 3Q25 highlights the positive impact of AI-driven efficiency gains. These factors, combined with an upward revision in FY25-27 non-GAAP operating income forecasts and a fine-tuned target price, reinforce the positive outlook for ServiceNow.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $1,066.00 price target.
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.