Analysts' Predicted Stock Values for ServiceNow Shares
ServiceNow, a digital workflow company headquartered in Santa Clara, California, is currently experiencing a moderate to bullish sentiment among Wall Street analysts. The consensus among 42 analysts covering ServiceNow's stock is a "Strong Buy," with a moderate buy recommendation based on price targets averaging between $1,115 and $1,154.
Analyst Ratings and Price Movement
Most analyst ratings for ServiceNow are "Buy," with a few "Hold" and one "Strong Sell." Despite mixed technical signals and some market volatility, the stock has recently gained 4.36% and 0.16% in short periods, indicating mild bullish momentum.
Financial Metrics and Valuation
ServiceNow shows solid profit growth, with a 35.18% Year-over-Year (YoY) profit increase. The company's return on equity stands at 7.73%, and its net profit margin is near 12%. However, there are concerns about asset utilization efficiency and inventory turnover, with an internal diagnostic score indicating slight fundamental weaknesses.
Quantitative models suggest ServiceNow is moderately undervalued, but not considered "cheap" either. This valuation complexity reflects ongoing debate about the justification of its current price amid broader tech sector risks and recent AI-related business expansions.
Technical Indicators and AI Capabilities
The stock is in a technical neutrality phase with conflicting signals. RSI oversold conditions suggest a possible rebound, but MACD remains uncertain, prompting some experts to advise a wait-and-see approach amid volatility.
ServiceNow's AI-driven platform helps organizations improve efficiency, reduce costs, and deliver faster, more consistent services. Analysts at JMP Securities believe that ServiceNow's AI capabilities should accelerate its growth, particularly with the growth of its AI Control Tower and AI agents.
Outlook and Recommendations
Wall Street analysts expect continued growth potential and moderate upside for ServiceNow, tempered by competitive pressures and mixed financial metrics. Investors are recommended a cautious but optimistic stance, closely monitoring market and technical signals amid sector developments and economic uncertainties.
serviceNow's stock had reached a 52-week high of $1,198.09 in January but is now down 26% from this high. Over the past 52 weeks, ServiceNow's stock has gained by 6.5%. As of market capitalization, ServiceNow has a value of $185.55 billion.
Wall Street analysts forecast a 29.4% Year-over-Year (YoY) growth in ServiceNow's EPS to $9.32 for the fiscal year 2025. In the second quarter, ServiceNow reported better-than-expected results, causing the stock to surge by 4.2%. The consensus price target of $1,148.37 represents a 29.5% premium over the stock's current levels. ServiceNow's current remaining performance obligations (cRPO) grew 24.5% YoY to $10.92 billion in Q2.
JMP Securities reiterated their "Market Outperform" rating on ServiceNow, giving a price target of $1,300, which reflects a 46.6% upside potential.
Please note that all information and data in this article are solely for informational purposes. For more information, please view the website Disclosure Policy here. The date of publication has no reported positions in any of the securities mentioned in this article.
Read also:
- Condor Reveals Q2 Results for 2025 and Secures a $5 Million Bridge Loan
- More than half of British homes adhere to insulation standards established during the 1970s.
- While Éowyn's storm caused a massive €301 million in damages, fossil fuels maintain their position as the leading power source.
- Transition in Energy: Merz Administration Plans Enactment of Heating Revolution from 2026
