Evercore ISI Maintains Buy Rating on ServiceNow Inc. (NOW)

ServiceNow Inc. (NYSE:NOW) is one of the 10 Best AI Stocks to Watch in May. Based on 49 analyst ratings compiled by CNN, 90 percent of analysts rated ServiceNow a Buy, with an average price target of $140, representing a 58.53% upside from the current price of $88.31. On April 28, TipRanks reported that Evercore ISI analyst Kirk Materne maintained a Buy rating on ServiceNow and set a price target of $140.00. Earlier on April 24, Citi Analyst Tyler Radke also issued a Buy rating on ServiceNow.

For the first quarter of the year, ServiceNow reported a 22% rise in total revenues to $3.77 billion, driven by higher subscription revenues. ServiceNow President and CFO Gina Mastantuono said the company exceeded the high end of its topline guidance. She added:

“In Q1, we exceeded the high end of our topline and profitability guidance metrics, grew free cash flow, and returned capital to shareholders. The early close of our Armis acquisition meaningfully expands our TAM and accelerates our subscription revenue growth trajectory. With agentic AI, workflow orchestration, security, and data fabric converging on a single platform, we believe the most compelling chapter in ServiceNow’s growth story is just beginning.”

In December, ServiceNow announced the acquisition of cyber exposure management & security company Armis for $7.75 billion in cash. ServiceNow said the acquisition will expand its security workflow offerings and advance AI-native, proactive cybersecurity and vulnerability response across all connected devices.

ServiceNow (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.

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: 10 Best Data Center Stocks to Buy for the Long Term and 8 Best Automotive Stocks to Buy According to Analysts.

Disclosure: None. Follow Insider Monkey on Google News.