ServiceNow Draws Fresh Target Hikes as Street Balances AI Ambition With Near-Term Risks
Analysts highlight a 2030 subscription goal of $30 billion tied to AI even as some investors question demand in large and federal deals.
Overview
- Sell-side firms stayed constructive, with BMO and Evercore reaffirming positive calls and Bernstein lifting its target to a Street-high $236.
- ServiceNow is promoting a long-range plan for $30 billion in subscription revenue by 2030 and a higher Rule of 40, a combined growth and margin metric, above 60.
- Skeptics warn that any slowdown in large enterprise or U.S. federal contracts could weigh on growth and keep valuation in check.
- Recent numbers showed about 22% year-over-year revenue growth to roughly $3.77 billion in the first quarter, with subscription guidance near $15.75 billion for fiscal 2026.
- Flows were mixed, as institutions expanded positions even as insiders sold shares, and the company moved to raise $4 billion through a bond offering.