ServiceNow (NOW) Hits $1.1B in Workflow Revenue, Rides Generative AI Wave

We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where ServiceNow, Inc. (NYSE:NOW) stands against other AI stocks on Wall Street’s radar.

On June 2nd, TD Cowen analyst Derrick Wood raised the price target on ServiceNow, Inc. (NYSE:NOW) to $1,150.00 (from $1,100.00) while maintaining a “Buy” rating.

The price target revision follows ServiceNow’s recent Technology, Media, and Telecom (TMT) Conference in New York City, where its General Manager and Senior Vice President of Core Business Workflows, Josh Kahn, was hosted.

ServiceNow (NOW) Hits $1.1B in Workflow Revenue, Rides Generative AI Wave

A team of software engineers at desks working on code for a cutting-edge cloud computing solution.

The conference highlighted how the company’s Business Workflows product group has reached $1.1 billion in annual recurring revenue, boasting a growth of approximately 40% in net new annual contract value in the last quarter. One of the reasons for the growth has been the strong traction with ServiceNow Assist and the Generative AI upgrade cycle.

The analysts noted how the company is also employing new bundling strategies for its Back Office products, which will increase product attachment rates and result in greater engagement with C-level executives. Overall, the firm reiterated its confidence in ServiceNow, highlighting its potential for sustained growth and innovation in product offerings.

ServiceNow, Inc. (NYSE:NOW) is a technology company that offers a cloud-based software platform for automating business workflows within an enterprise.

Overall, NOW ranks 6th on our list of AI stocks on Wall Street’s radar. While we acknowledge the potential of NOW as an investment, 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.