Here is Why ServiceNow (NOW) Is Among the Best Long-Term Tech Stocks to Invest In?

ServiceNow, Inc. (NYSE:NOW) has a five-year forward EPS growth of over 25%, making it to our list of the best long-term tech stocks to buy according to hedge fund.

ServiceNow, Inc. seems to have mixed market sentiment, with the stock suffering and dropping over 40% year-to-date as of April 27. The company released its Q1 earnings data on April 23, with the Q1 2026 revenue soaring over 22% to $3.77 billion from a year ago, exceeding estimates by 24.22 million. The earnings per share increased 22% year-over-year to $0.97 per share. Despite a positive outcome, investors gave a clear message with the stock dropping in after-hours following the earrings release. The company mentioned that they missed a few large on-premise deals due to the ongoing Middle East war.

Here is Why ServiceNow (NOW) Is Among the Best Long-Term Tech Stocks to Invest In?

ServiceNow sees Q2 subscription revenue to grow 22.5%, expecting between $3.815 billion and $3.82 billion. For the full-year, the company projects the subscription revenue to range between $15.735 billion and $15.775 billion, indicating 22.5% growth as well.

Investors want to see the AI segment make a difference amid the current AI boom. The company’s AI agent, Now Assist, is experiencing strong growth, as the customers’ spending more than $1 million in annual contract value grew more than 130% from a year ago. The management has highlighted Now Assist as its fastest-growing enterprise software ever.

Out of 49 analysts covering NOW, 44 rate the stock as a Buy with a median price target of $140, implying an upside of approximately 44%.

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.

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.

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