ServiceNow Gets Wall Street's Vote of Confidence Ahead of Earnings
ServiceNow, Inc. (NYSE: NOW ) drew bullish analyst commentary Monday as analysts pointed to strong enterprise AI demand, federal spending, and cybersecurity opportunities ahead of its third-quarter earnings on Oct. 28. Analysts expect earnings per share of $1.03, up from 96 cents a year earlier, and revenue of $4.09 billion, compared with $3.41 billion in the prior-year period. The stock carries a Buy rating with an average price forecast of $148.93. Recent analyst moves include: RBC Capital analyst Matthew Hedberg maintained an Outperform rating and raised the price forecast from $130 to $176 on Monday. BTIG analyst Allan Verkhovski reiterated a Buy rating and maintained a price forecast of $170 on Monday. Argus Research analyst Joseph Bonner kept a Buy rating and boosted the price forecast from $134 to $170 on Friday. RBC Expects Earnings Beat, Sees AI and Federal Demand Supporting Growth RBC Capital analyst Matthew Hedberg expects ServiceNow to beat expectations and incorporate more of the upside into its calendar-year 2026 estimates than it did last quarter. Hedberg cited enterprise AI demand, strength in U.S. federal spending and a growing deal pipeline as positives. The analy
ServiceNow, Inc. (NYSE: NOW ) drew bullish analyst commentary Monday as analysts pointed to strong enterprise AI demand, federal spending, and cybersecurity opportunities ahead of its third-quarter earnings on Oct. 28. 41 billion in the prior-year period.
93. Recent analyst moves include: RBC Capital analyst Matthew Hedberg maintained an Outperform rating and raised the price forecast from $130 to $176 on Monday. BTIG analyst Allan Verkhovski reiterated a Buy rating and maintained a price forecast of $170 on Monday. Argus Research analyst Joseph Bonner kept a Buy rating and boosted the price forecast from $134 to $170 on Friday.
RBC Expects Earnings Beat, Sees AI and Federal Demand Supporting Growth RBC Capital analyst Matthew Hedberg expects ServiceNow to beat expectations and incorporate more of the upside into its calendar-year 2026 estimates than it did last quarter. S. federal spending and a growing deal pipeline as positives. The analyst also sees cybersecurity as an expanding growth opportunity, with ServiceNow positioned to monetize AI, consolidate customer spending and raise guidance toward year-end.
While the analyst does not expect customers to buy additional Now Assist packs, he sees the roughly 30% annual contract value (ACV) uplift from Pro Plus remaining stable. 5 billion AI ACV target, cybersecurity momentum and cross-selling of core ITSM, ITOM and CMDB products following acquisitions. Other areas of focus include adoption of Flow, a conversational AI-native service desk designed to expand ServiceNow's reach across the Fortune 500 and support future product sales, as well as gross margins amid changes in consumption mix and hyperscaler growth, Hedberg added.
BTIG Sees AI Opportunity As Underappreciated BTIG analyst Allan Verkhovski views ServiceNow's AI opportunity as underappreciated. 5% baseline. S. Federal demand, easier year-over-year comparisons and Armis' fourth-quarter contribution.
S. Federal contract renewals and upgrades to the Advanced pricing tier are key areas to watch following the July 1 end of sales for legacy tiers, he added. AI Control Tower, AI Workflow Factory and Autonomous Engineer could support further AI adoption as enterprises focus on automation, data sovereignty and security. However, budget constraints, seat optimization and return-on-investment scrutiny remain challenges among SMB and mid-market customers, Verkhovski noted.
19 at the time of publication on Monday, according to Pro data. Photo via Shutterstock Read Also: ServiceNow AI Adoption, Enterprise Spending Catches Analyst Attention