Benchmark Reiterates Buy Rating on ServiceNow (NOW) on Strong Long-Term Operating Guidance

Benchmark analyst Yi Fun Lee reiterated a Buy rating and $125.00 price target on ServiceNow (NYSE: NOW).

The analyst commented, "We view investors are laser focused on the long term guidance expected to deliver sustainable revenue growth inclusive of the agentic AI adoption tailwind, AI Control Tower (cybersecurity), sales customer relationship management (CRM), RaptorDB (data & analytics), and workflows upside on incremental operating leverage. The updated long term operating guidance provided at the investor session certainly did not disappoint; subscription revenue is expected to expand at a CAGR of ~17.5% from the midpoint of 2026 through 2030E to achieve the base target of $30 billion. We feel the upside opportunity as outlined by management of increasing CAGR to target 19.4%/~20% from 2026 through 2030E to attain $32 billion is highly achievable. We predicted management will show up ready to respond from the 1Q26 EPS set back, and the entire ServiceNow team has shown why this tier 1 SaaS firm is a top AI/GenAI enabler. The company has indeed articulated how the comprehensive suite of MoveWorks/EmployeeWorks (AI agent & search), AI Control Tower/Armis/Veza (cybersecurity), Now Assist, CRM, and RaptorDB Data Fabric is set to build the next $32 billion SaaS/software machine operating on a Rule of 60+ in our view."

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 $91.97 yesterday.

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