ServiceNow
NOW
$136.72
-4.32%
ServiceNow, Inc. is a leading provider of enterprise software solutions, delivering a cloud-based platform that automates and structures business processes, primarily within IT service management and expanding into customer service, HR, and security operations. As a pioneer in the workflow automation space, ServiceNow has established itself as a market leader, leveraging its 'Now Platform' to enable digital transformation for large enterprises. The current investor narrative centers on the company's strategic pivot to agentic AI, which is seen as a key growth catalyst, while also grappling with concerns about valuation and competitive pressures from tech giants like Microsoft and Salesforce. Recent news highlights ServiceNow's strong revenue growth and AI-driven momentum, positioning it as a potential defensive play in the enterprise software sector despite a volatile first half of 2026.…
NOW
ServiceNow
$136.72
Related headlines
NOW 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on ServiceNow's 12-month outlook, with a consensus price target around $141.19 and implied upside of +3.3% versus the current price.
Average Target
$141.19
0 analysts
Implied Upside
+3.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$72 - $248
Analyst target range
The target price range spans from a low of $72.00 to a high of $248.00, indicating a wide dispersion in analyst expectations. The low target of $72.00 implies a potential downside of -50.2% from the current price, likely reflecting bearish scenarios such as margin compression or competitive losses. The high target of $248.00 suggests an upside of 71.4%, which would require significant multiple expansion or accelerated growth driven by agentic AI adoption. The wide spread between the low and high targets highlights the high uncertainty surrounding the stock's future performance, particularly given the volatile market conditions and the ongoing AI-driven selloff in the first half of 2026. Recent institutional ratings show a mix of 'Buy' and 'Outperform' actions, with one upgrade from Guggenheim from Neutral to Buy, indicating a generally positive but cautious sentiment.
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NOW Technical Analysis
ServiceNow's stock is currently in a strong recovery phase, having rebounded significantly from its 52-week low of $81.24. The 1-year price change is -22.08%, indicating that despite the recent rally, the stock remains well below its levels from a year ago. The current price of $144.71 sits at approximately 74.3% of the 52-week range (calculated as (144.71 - 81.24) / (194.726 - 81.24)), suggesting that while the stock has recovered from its lows, it still has substantial upside to its 52-week high of $194.73. This positioning near the upper end of the range after a sharp decline suggests a potential trend reversal, but the stock remains in a longer-term downtrend from its peak.
Beta
0.93
0.93x market volatility
Max Drawdown
-58.2%
Largest decline past year
52-Week Range
$81-$195
Price range past year
Annual Return
-25.0%
Cumulative gain past year
| Period | NOW Return | S&P 500 |
|---|---|---|
| 1m | +19.7% | +1.0% |
| 3m | +14.5% | +1.1% |
| 6m | +10.0% | +13.8% |
| 1y | -25.0% | +19.5% |
| ytd | -7.3% | +12.2% |
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NOW Fundamental Analysis
ServiceNow's revenue growth remains robust, with the most recent quarter (Q1 2026) reporting revenue of $3.77 billion, a 22.09% year-over-year increase. This growth is consistent with the prior quarter's 20.9% growth (Q4 2025 revenue of $3.568 billion vs. $2.957 billion in Q4 2024), indicating a stable, high-growth trajectory. The company's revenue segments show a heavy reliance on subscription and service revenue, which is typical for SaaS models, and the 22% growth rate underscores strong demand for its workflow automation solutions. This growth is a key driver of the investment case, as it demonstrates the company's ability to expand its customer base and increase wallet share.
Quarterly Revenue
$3.8B
2026-03
Revenue YoY Growth
+22.1%
YoY Comparison
Gross Margin
75.1%
Latest Quarter
Free Cash Flow
$4.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is NOW Overvalued?
Given ServiceNow's positive net income, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 90.64, while the forward PE is 28.91, reflecting a significant gap that implies the market expects substantial earnings growth in the coming year. This gap is consistent with the company's strong revenue growth and improving profitability, as evidenced by a net margin of 13.16% in the most recent quarter. The forward PE of 28.91 is more reasonable for a high-growth SaaS company, but the trailing PE remains elevated, suggesting that the market is pricing in optimistic future earnings.
PE
90.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 27x~486x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
52.5x
Enterprise Value Multiple