Shares of ServiceNow, Inc. (NYSE:NOW) are trading higher on Thursday. Several analysts revised their price forecast on the stock following the company’s strong growth outlook for 2030.
AI Growth Strategy Gains Momentum
This week, the company outlined a path to more than $30 billion in annual subscription revenue by 2030. This implies a growth from an estimated $15.7 billion in 2026, implying roughly 20% annual growth, reported Business Insider.
During a meeting with analysts, President and CFO Gina Mastantuono added that there is potential upside beyond $32 billion.
The company also pushed back on concerns that AI could pressure margins, saying it expects to maintain gross margins above 80% even as AI adoption increases.
ServiceNow forecasted a 100-basis-point expansion in operating and free cash flow margins in 2027 and reiterated its goal of achieving a “Rule of 60+” by 2030, combining revenue growth and free cash flow margins.
AI monetization remains central to the strategy. The company said its Now Assist product surpassed $600 million in annual contract value in 2025 and exceeded $750 million in the first quarter of 2026.
Mastantuono said the figure is expected to more than double to over $1.5 billion by the end of the year.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $139.35. Recent analyst moves include:
- Bernstein: Market Perform (Raises Target to $236.00) (May 6)
- Barclays: Overweight (Raises Target to $134) (May 5)
- Evercore ISI Group: Outperform (Raises Target to $150) (May 5)
- Macquarie: Neutral (Maintains Target to $109.00) (May 5)
- DA Davidson: Buy (Maintains Target to $190.00) (May 5)
ServiceNow’s Benzinga Edge Rankings Explained
Below is the Benzinga Edge scorecard for SERVICENOW, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bearish (Score: 2.27) — Despite today's pop, the broader trend signals are still very weak versus the market.
- Quality: Neutral (Score: 49.35) — The fundamentals screen as middle-of-the-pack, not a clear strength or weakness.
- Value: Weak (Score: 18.54) — The stock screens as expensive on traditional value metrics, consistent with a premium multiple.
- Growth: Bullish (Score: 89.04) — The market is still pricing in strong longer-term growth expectations.
The Verdict: SERVICENOW’s Benzinga Edge signal reveals a growth-heavy profile with weak value support and very soft momentum readings. For longer-term bulls, the setup improves if price can reclaim the $104.50 area and start rebuilding above the 50-day average, but until then, this still looks like a rebound inside a damaged trend.
NOW’s Top ETF Exposure and Fund Flows
- iShares Expanded Tech-Software Sector ETF (BATS:IGV): 4.38% Weight
- Trenchless Fund ETF (NYSE:RVER): 6.86% Weight
- Polen Focus Growth ETF (NYSE:PCLG): 6.10% Weight
Significance: Because NOW carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
ServiceNow Stock Price Activity on Thursday
NOW Stock Price Activity: ServiceNow shares were up 5.45% at $93.90 at the time of publication on Thursday, according to Benzinga Pro data.
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