
ServiceNow (NOW) Stock Forecast & Price Target
ServiceNow (NOW) Analyst Ratings
Bulls say
ServiceNow Inc. demonstrated robust performance with a ~20% full-year subscription revenue growth forecast, indicating continued strong demand and deeper adoption of its platform among large customers, particularly those with $5 million or more in ACV. The company has solidified its leadership in the IT service management market, increasing its share from 34% in 2020 to 40% in 2024, and has also shown significant growth in the model-driven application platforms market, doubling its market share from 4% to 12% within the same timeframe. Additionally, ServiceNow's strategic partnerships and increasing utilization of its AI capabilities have fostered innovation and growth, particularly in the federal sector, where it experienced over 30% year-over-year net-new ACV growth.
Bears say
ServiceNow's financial outlook appears challenging as the company's Rule of 40 score declined to 54 for FY24, reflecting a slowdown in revenue growth despite slight gains in profitability. Year-to-date, ServiceNow and the broader SaaS index have underperformed significantly, with losses of 23% and 28%, respectively, compared to stable and positive performance in other software indices. Key risks include potential declines in the premium EV/revenue multiple, rapid subscription revenue deceleration, and increasing competition, alongside concerns about organic revenue growth and leadership transitions.
This aggregate rating is based on analysts' research of ServiceNow and is not a guaranteed prediction by Public.com or investment advice.
ServiceNow (NOW) Analyst Forecast & Price Prediction
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