ServiceNow (NOW) Among the Best Software Stocks to Buy in 2026

ServiceNow, Inc. (NYSE:NOW) is one of our Best Software Stocks to Buy in 2026. The company is set to release its fiscal Q2 2026 earnings on July 22. The stock recently rebounded around 18% after a selloff of roughly 27% over the past 6-months.

​Management expects fiscal Q2 2026 subscription revenue to grow by 22.5% year-over-year to be in the range of $3.815 billion – $3.820 billion. Wall Street is also bullish on the stock ahead of the earnings, with analysts’ 12-month average price target suggesting more than 26% upside.

​Recently, on July 2, Guggenheim upgraded ServiceNow, Inc. (NYSE:NOW) to Buy from Neutral, setting a $125 price target. The firm noted the stock to be an attractive buying opportunity considering the current valuations. Guggenheim calls ServiceNow a comfortably profitable company, which is expected to keep growing organically at double-digit rates for the foreseeable future.

The firm believes investors can access this durable, profitable growth at a price that doesn’t fully reflect it.

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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