With one-year EPS and revenue growth estimates of 19.81% and 18.47%, respectively, ServiceNow, Inc. (NYSE:NOW) earns a place on our list of the best growth stocks to buy and hold in 2026. The stock has 70% upside potential as of April 23, 2026.
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Barclays analyst Raimo Lenschow came back to ServiceNow, Inc. (NYSE:NOW) on April 23, 2026, reinstating coverage with an “Overweight” rating and a price target of $132. His read on the first-quarter results was measured: the broader macroeconomic environment had an impact, but nothing that changes the fundamental story.
Lenschow highlighted that ServiceNow, Inc. (NYSE:NOW) remains among the strongest-positioned software names, owing to its deep integration within customers’ IT environments, a structural advantage the firm believes will position the company as an integral participant in enterprise AI adoption.
That assessment is reinforced by the company’s first-quarter financial results, announced a day earlier.
ServiceNow, Inc. (NYSE:NOW) reported subscription revenue of $3.671 billion, up 22% year-over-year, with total revenue of $3.770 billion, reflecting equivalent growth. Demand indicators remained robust: current remaining performance obligations rose 22.5% to $12.64 billion, while total remaining performance obligations expanded 25% to $27.7 billion. Now Assist customers with annual contract values exceeding $1 million grew more than 130% year-over-year, underscoring durable commercial momentum in the company’s AI product portfolio.
Still, the quarter was not without headwinds.
Non-GAAP EPS came in at $0.97 per share, with subscription revenue growth facing a 75-basis-point drag from delayed large deal closings in the Middle East.
ServiceNow, Inc. (NYSE:NOW) also shared its expectations for the rest of the year.
For the second quarter of 2026, it sees subscription revenue coming in between $3.815 billion and $3.820 billion and expects to keep 26.5 cents of operating profit for every dollar earned. For the full year, ServiceNow, Inc. (NYSE:NOW) increased its revenue forecast to between $15.735 billion and $15.775 billion, with operating profitability of 31.5% and free cash flow margin of 35%.
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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