Bernstein Raises its Price Target on ServiceNow (NOW) to $236

ServiceNow, Inc. (NYSE:NOW) is one of the 10 Best Quality Stocks to Buy and Hold for the Next 5 Years.

On May 6, 2026, Bernstein analyst Peter Weed raised the firm’s price target on ServiceNow, Inc. (NYSE:NOW) to $236 from $226 and maintained an Outperform rating following the company’s Analyst Day. Bernstein said the event added a bullish tailwind as ServiceNow introduced long-term 2030 targets that include increasing its Rule of 40 metric to above 60, expanding free cash flow margins by an implied 900 basis points versus 2025 levels, and reducing stock-based compensation to less than 10% of revenue by 2029. The firm also noted, however, that some investors may focus on the company’s 2030 subscription revenue target of $30B, which implies growth slowing toward the mid-teens over time.

Bernstein Raises its Price Target on ServiceNow (NOW) to $236

Photo by George Morina on Pexels

On May 5, 2026, ServiceNow, Inc. (NYSE:NOW) said at its Financial Analyst Day that it expects subscription revenue to reach $30B by 2030, driven by accelerating adoption of its AI products. The company added that around 30% of annual contract value is expected to come from Now Assist, its flagship AI offering, by that point.

Also on May 5, FedEx Corporation and ServiceNow, Inc. (NYSE:NOW) announced an expanded collaboration that embeds logistics intelligence from FedEx Dataworks into ServiceNow’s Source-to-Pay workflows and new supply chain management applications. The companies said the partnership aims to improve supply chain visibility, exception management, and customer experience, initially through procurement-focused solutions. CEO Bill McDermott said the collaboration combines ServiceNow’s agentic workflows with FedEx logistics intelligence to support more resilient supply chains.

ServiceNow, Inc. (NYSE:NOW) provides cloud-based digital workflow solutions across North America, Europe, the Middle East, Africa, and the Asia Pacific.

While we acknowledge the risk and potential of NOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.