Why Analysts Still Favor ServiceNow, Inc. (NOW)

ServiceNow, Inc. (NYSE:NOW) is among the best high-return technology stocks to buy now. On May 6, BMO Capital reaffirmed an Outperform rating and a price target of $115 on ServiceNow, Inc. (NYSE:NOW). According to the firm, the company’s platform is defensive due to the following three factors: autonomous execution, governance, and context. The firm believes the long-term revenue outlook may not significantly improve the investor sentiment in the times ahead. Although near-term risks exist, the firm remains positive on the company.

On the same day, Bernstein SocGen Group lifted the price target on ServiceNow, Inc. (NYSE:NOW) to $236 from $226 and reiterated a Market Perform rating. The price rise came after the company’s Analyst Day, where it highlighted plans to increase its Rule of 40 metric to more than 60 from the current 56.

Photo by Adam Nowakowski on Unsplash

Additionally, ServiceNow, Inc. (NYSE:NOW) projects 2030 subscription revenue of $30 billion, relative to the guidance of nearly $15.75 billion for FY26. Despite underperforming the S&P 500 in terms of returns, the company has quarterly revenue growth (YoY) of 22.10%, making it one of the best high-return technology stocks to buy now. Peter Weed, an analyst at Bernstein SocGen, said that the Analyst Day “added a bullish tailwind” but also “fed the bears who believe any level of deceleration is intolerable.”

ServiceNow, Inc. (NYSE:NOW) is a California-based provider of cloud-based solutions for digital workflows. Incorporated in 2004, the company delivers a diverse range of products, including asset management, customer service management, field service management applications, and source-to-pay operations.

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