Shares of ServiceNow (NOW) are up after the software company reported strong second-quarter results. As a result, analysts are now saying that it is one of the best-positioned companies to benefit from AI growth. Indeed, Cantor analysts, led by 4.4-star analyst Thomas Blakey, praised the company’s continued success in landing large enterprise deals worth over $20 million. While the growth rate of these deals slowed to 30% from 40% in the last quarter, they still consider this impressive. They also pointed out that ServiceNow is entering a major renewal period in the second half of the year and maintained their Buy rating with a $1,200 price target.
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Separately, Oppenheimer analysts also kept their Buy rating and raised their price target from $1,100 to $1,150. Led by five-star analyst Brian Schwartz, the team stated that strong sales execution and healthy profit margins, along with better-than-expected contract revenue in the first half of the year and solid guidance for the third quarter, suggest that there will be upside potential for 2026 estimates. They added that the company is heading into the rest of 2025 with positive spending trends and an increasing focus on AI and back-office software, which should help maintain its strong performance.
Other firms raised their price targets as well. Raymond James’ four-star analyst Adam Tindle, for example, boosted his target to $1,100 from $1,000 and maintained a Buy rating due to the company’s rare combination of growth, scale, and cash generation. At the same time, Piper Sandler’s five-star-rated Rob Owens raised his price target to $1,150 and kept a Buy rating, thanks to strong AI adoption, large deal momentum, and steady demand across customer segments, including U.S. federal contracts.
Is NOW Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NOW stock based on 27 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NOW price target of $1,138.88 per share implies 14.7% upside potential.
