ServiceNow's (NOW) Growth Forecasts Improve - Analysts Say More Upside Ahead

ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks in the Spotlight This Week. On October 30, Wells Fargo analyst Michael Turrin raised the price target on the stock to $1,275.00 from $1,225.00 while maintaining an Overweight rating driven by the company’s higher FY25-26 outlook.

The firm believes that ServiceNow is one of the best growth assets in large-cap software.

“Model Updates: We’re revising our estimates higher to account for the raised 2025 guide and flow-through to 2026 and beyond. FY25 revs to/from $13.2B/$13.2B, FCF $4.5B/$4.2B, EPS $17.43/$17.09. FY26 revs $15.6B/$15.5B, FCF $5.4B/$5.1B, EPS $20.64/$20.19."

"Valuation: NOW shares are trading at 12.5x NTM EV/S and 35x NTM EV/FCF. Our $1,275 PT (raised from $1,225 on higher estimates) is derived from 42.5x EV/FCF on our Fwd NTM est (implies 15x EV/S), an admitted premium, but one we believe is warranted given NOW’s profile as one the best growth assets in large-cap software.”

ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.

While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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