TD Cowen Reiterates Buy Rating & Best Idea on ServiceNow (NOW)

TD Cowen analyst Derrick Wood reiterated a Buy rating and $1,100.00 price target on ServiceNow (NYSE: NOW).

The analyst commented: "Setting the Pace for Agentic AI; We attended NOW's Analyst Day & Knowledge Conf in Las Vegas this week. Mgmt reiterated its FY26 sub rev target of $15b+ & EBIT/FCF margin targets, alongside a new ~100bp EBIT/FCF margin expansion target in FY27. Now Assist continues to be NOW's fastest growing product ever, expected to hit $1b+ in ACV in FY26. We continue to view NOW as the largest SaaS monetizer of GenAI to date. Reiterate Buy.

NOW disclosures indicate it is leading the pack in GenAI monetization among SaaS vendors, and we think its vision around the emerging Agentic AI opportunity is highly compelling as it beefs up its Data + Analytics and Orchestration + Governance capabilities. Moreover, NOW is pushing more aggressively into the CRM market as it looks to make front-, middle- and back-office workflows more autonomously-driven via a single system-of-action platform. We look for the Pro+ product cycle to continue to drive GenAI monetization, w/ an added layer of consumption revs kicking in over time. Reiterate Buy & Best Idea."

For an analyst ratings summary and ratings history on ServiceNow click here. For more ratings news on ServiceNow click here.

Shares of ServiceNow closed at $978.05 yesterday.

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