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Why Does ServiceNow (NOW) Remain Among the Strong-Positioned Software Names According to Barclays?

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.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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