Oppenheimer Backs ServiceNow (NOW) as AI-Fuelled Workflows Support Growth Outlook

ServiceNow Inc. (NYSE:NOW) is one of the best large-cap tech stocks to buy now. On July 24, Oppenheimer analyst Brian Schwartz reiterated his Buy rating on ServiceNow and lifted the price target to $1,150 from $1,100. He pointed to strong sales execution, solid margins, and contract revenue in the first half of the year that exceeded expectations.

Schwartz’s update came after ServiceNow posted better-than-expected Q2 2025 results and guided solid subscription revenue growth for Q3. The management is now forecasting about $3.26 billion in subscription sales, slightly ahead of the $3.21 billion average analyst estimate compiled by Bloomberg. The company credited much of the momentum to strong uptake of its generative AI offering, Now Assist, which is available only through higher-priced subscription plans. CFO Gina Mastantuono noted that bookings for the AI tool exceeded expectations, driven by both larger contract values and a higher volume of deals.

Schwartz also noted that third-quarter guidance came in ahead of forecasts, supporting potential upside to 2026 estimates. With healthy IT spending trends and growing adoption of AI and back-office solutions, he believes ServiceNow is well-positioned to sustain its momentum through the remainder of 2025 and beyond.

ServiceNow Inc. (NYSE:NOW) provides a cloud-based platform for digital workflows, enabling organizations to automate and optimize their business processes. Its Now Platform offers solutions across IT service management, customer service, HR, and other areas.

While we acknowledge the potential of NOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NOW and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.