ServiceNow, Inc. (NYSE:NOW) is one of the Best Fundamentally Strong Stocks to Buy. On October 31, Saiyi He, an analyst from CMB International Securities, maintained a “Buy” rating on the company’s stock, and the associated price target was $1,180.00. The analyst’s rating is backed by a combination of factors, which include its impressive financial performance and strategic advancements.
As per the analyst, ServiceNow, Inc.’s Q3 2025 results demonstrated a strong 22% YoY increase in total revenue to $3.4 billion, aligning with the market expectations. ServiceNow, Inc.’s robust execution in subscription revenue, rising 21.5% YoY to $3.2 billion, and a 21% YoY growth in current remaining performance obligations (cRPO) to $11.35 billion further aid the analyst’s rating.
The company’s subscription revenues were mainly aided by increased purchases by new and existing customers. The company’s non-GAAP operating margin stood at 33.5%, 300 bps above its guidance. This was driven by its top-line outperformance, AI OpEx efficiencies, disciplined spend management, and timing of some program spend.
ServiceNow, Inc. had 103 transactions with more than $1 million in net new annual contract value in Q3 2025, and ended the quarter with 553 customers with over $5 million in ACV, reflecting 18% YoY growth. On a GAAP basis, for Q4 2025, the company expects subscription revenues of between $3,420 million – $3,430 million, and cRPO growth of 23% YoY.
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This article is originally published at Insider Monkey.
