UBS: ServiceNow’s (NOW) Core Business Solid, AI Adoption Disappoints Slightly

ServiceNow, Inc. (NYSE:NOW) is one of the AI Stocks Analysts Are Watching Closely. On October 14, UBS lowered its price target on the stock to $1,075.00 from $1,100.00 while maintaining a Buy rating. The rating comes ahead of the company’s third-quarter earnings report.

UBS conducted partner and customer checks to assess ServiceNow’s momentum in 3Q. The firm noted how checks reveal fine/ solid core business performance, which is why it is poised for a normal beat.

One drawback is that feedback on AI adoption has been a little bit disappointing, which aligns with the feedback it has been receiving on other Software-as-a-Service (SaaS) companies.

“Ahead of ServiceNow’s 3Q25 print on Oct 29th, we caught up with a handful of ServiceNow partners and customers to assess how ServiceNow’s momentum tracked in 3Q. Bottom line, the checks on the core business were fine/solid, pointing in our view to a normal beat, but the feedback on AI adoption was somewhat disappointing, in keeping with what we’re hearing in checks on other SaaS firms.

With SaaS/apps sentiment already cautious – frankly, perhaps the worst in years – and the stock trading at just 36x CY26 for ~20% growth, near-term downside could be limited.”

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

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