CMB International Securities Maintains Buy Rating on ServiceNow (NOW) Stock

ServiceNow, Inc. (NYSE:NOW) is one of the Best Fundamentally Strong Stocks to Buy. On October 31, Saiyi He, an analyst from CMB International Securities, maintained a “Buy” rating on the company’s stock, and the associated price target was $1,180.00. The analyst’s rating is backed by a combination of factors, which include its impressive financial performance and strategic advancements.

As per the analyst, ServiceNow, Inc. (NYSE:NOW)’s Q3 2025 results demonstrated a strong 22% YoY increase in total revenue to $3.4 billion, aligning with the market expectations. ServiceNow, Inc. (NYSE:NOW)’s robust execution in subscription revenue, rising 21.5% YoY to $3.2 billion, and a 21% YoY growth in current remaining performance obligations (cRPO) to $11.35 billion further aid the analyst’s rating.

The company’s subscription revenues were mainly aided by increased purchases by new and existing customers. The company’s non-GAAP operating margin stood at 33.5%, 300 bps above its guidance. This was driven by its top-line outperformance, AI OpEx efficiencies, disciplined spend management, and timing of some program spend.

ServiceNow, Inc. (NYSE:NOW) had 103 transactions with more than $1 million in net new annual contract value in Q3 2025, and ended the quarter with 553 customers with over $5 million in ACV, reflecting 18% YoY growth. On a GAAP basis, for Q4 2025, the company expects subscription revenues of between $3,420 million – $3,430 million, and cRPO growth of 23% YoY.

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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Disclosure: None. This article is originally published at Insider Monkey.