ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention
A couple of analysts raised the price forecasts for ServiceNow (NYSE: NOW ) on Tuesday. Stifel analyst Brad Reback raised the price forecast from $120 to $160, while maintaining a Buy rating. UBS analyst Karl Keirstead kept a Neutral rating and raised the price forecast from $110 to $150. • What’s the outlook for NOW shares? Enterprise Spending to Show Modest Improvement Stifel analyst noted that ServiceNow’s enterprise spending environment is showing a modest sequential improvement, supported by elevated deal activity, solid renewal momentum and increasing adoption of Advanced SKUs. However, some customers remain uncertain about the company’s AI-enabled products and pricing structure, adds the analyst. The analyst writes that early indicators also suggest that consumption trends are gaining momentum, broadly consistent with management’s expectations. See More: Top Momentum Stocks Non-Defense Business Remains Flattish U.S. non-Department of Defense federal business appears to have been roughly flat year over year in the third quarter, despite a challenging comparison and volatility related to the renewal timing of a large VA contract, adds the analyst. Although the renewal could te
A couple of analysts raised the price forecasts for ServiceNow (NYSE: NOW ) on Tuesday. Stifel analyst Brad Reback raised the price forecast from $120 to $160, while maintaining a Buy rating. UBS analyst Karl Keirstead kept a Neutral rating and raised the price forecast from $110 to $150. • What’s the outlook for NOW shares?
Enterprise Spending to Show Modest Improvement Stifel analyst noted that ServiceNow’s enterprise spending environment is showing a modest sequential improvement, supported by elevated deal activity, solid renewal momentum and increasing adoption of Advanced SKUs. However, some customers remain uncertain about the company’s AI-enabled products and pricing structure, adds the analyst. The analyst writes that early indicators also suggest that consumption trends are gaining momentum, broadly consistent with management’s expectations. S.
non-Department of Defense federal business appears to have been roughly flat year over year in the third quarter, despite a challenging comparison and volatility related to the renewal timing of a large VA contract, adds the analyst. S. federal performance, the analyst projects the impact to be more than offset by a nine-figure UK public-sector contract win. Analyst Expects Management to Give Conservative Outlook Overall, fourth-quarter upside is expected to be at least in line with the approximately 200-basis-point upside delivered in the second quarter.
Reported cRPO growth stood at 22% year over year on a constant-currency basis, compared with guidance of approximately 20%. Looking ahead, despite positive commentary around the pipeline and an easier federal comparison in the fourth quarter, the analyst expects management to remain conservative in its outlook. 5% reported year-over-year constant-currency growth, adds the analyst.
AI Workflow Factory & Autonomous Engineer Solutions In India ServiceNow also disclosed on Tuesday its AI Workflow Factory and Autonomous Engineer solutions designed to identify opportunities for AI-driven improvements and provide a unified platform to build, operate and expand AI workflows across enterprises. The solutions aim to help businesses scale operations in days rather than months while maintaining governance through ServiceNow’s AI Control Tower. The announcement also highlights India as a key market for enterprise-wide, governed AI transformation.
ServiceNow’s Indian partner ecosystem is adopting AI Workflow Factory and new developer capabilities, including unattended coding for autonomous planning, development and testing through Autonomous Engineer. 19 at the time of publication on Tuesday. Photo via Shutterstock