JPMorgan Raises ServiceNow (NOW) Price Target on AI-Driven Outperformance

ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks on the Market’s Radar. On October 30, JPMorgan reiterated the stock as “Overweight” and raised its price target on the stock to $1,075 per share from $1,020 following earnings.

The analyst told investors in a research note how ServiceNow has reported better than expected Q3 results on federal government bookings and “robust” artificial intelligence growth.

The company reported third quarter EPS of $4.82, topping consensus estimate of $4.27. Revenue for the quarter came in at $3.41B versus the consensus estimate of $3.35B.

Looking ahead, it raised its full-year guidance, now anticipating subscription revenue to range between $12.84 billion and $12.85 billion for the year.

“ServiceNow stands out as the pioneer and leader of cloud-based IT Workflow management and is in the early stages of transforming into a true multi-product success story as it expands its presence in Employee, Customer, and Creator Workflows.” -JP Morgan

Discussing the earnings, finance Chief Gina Mastantuono told CNBC that the annual contract value for ServiceNow’s AI business is anticipated to surpass $500 million this year and reach $1 billion by 2026.

“The value AI is going to create in enterprise is like nothing that we’ve seen in a very, very long time. We have real customers, it’s not just hype, and we have real values and we’re driving real outcomes for those customers.”

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

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