ServiceNow Inc. (NYSE:NOW) remains in focus as investors weigh its expanding AI opportunity, broader platform adoption and premium valuation ahead of earnings on Wednesday.
The stock is down almost 2% on Wednesday.
Analysts expect quarterly revenue of $4.09 billion and EPS of $1.02.
Cantor Fitzgerald Raises ServiceNow Price Forecast
Cantor Fitzgerald analyst Thomas Blakey maintained an Overweight rating on ServiceNow and raised his price forecast to $201 from $174 on Monday.
Cantor Fitzgerald cited strong enterprise demand and improving monetization across ServiceNow’s AI governance, control and automation offerings as key factors supporting its bullish outlook.
The firm also sees ServiceNow’s AI strategy increasingly centered on providing enterprises with tools to control and manage AI deployments, adding another potential growth driver as corporate adoption expands.
BNP Paribas Sees Broader Platform Adoption
BNP Paribas analyst Stefan Slowinski maintained an Outperform rating on ServiceNow with a $160 price forecast on Monday.
Slowinski said feedback from ServiceNow’s World Forum in London reinforced his view that the company remains a beneficiary of enterprise AI adoption.
He said customers are moving more workflows onto the ServiceNow platform beyond core IT, including human resources, finance and customer service. Slowinski sees that broader adoption as a near-term growth driver because it expands ServiceNow’s role across organizations and strengthens the data foundation customers can use for AI.
Partners also reported increased use of ServiceNow alongside systems such as Workday and Oracle. One partner said ServiceNow helped reduce IT help-desk costs by 30%-40%.
Control Tower Expands AI Monetization Opportunity
Slowinski said ServiceNow is emerging as an orchestration and governance layer for enterprise AI through Control Tower.
Partner interest remains high even though adoption is still early. Partners also highlighted ServiceNow’s security acquisitions, particularly Armis, as strengthening its ability to map assets, manage AI agents and provide enterprise governance.
Slowinski said AI monetization is expanding beyond Now Assist and increasingly includes Control Tower.
Organic Growth Could Top 20%
Slowinski expects organic revenue growth to exceed 20% once acquired security assets become organic in the second quarter of fiscal 2027.
He also noted that security could account for roughly 10% of revenue and believes stronger AI monetization, combined with ServiceNow’s asset-light software model, can support continued free-cash-flow growth.
Cost and Valuation Remain Key Risks
Slowinski noted that ServiceNow trades at roughly 50 times calendar 2027 GAAP earnings, including stock-based compensation.
He believes faster organic growth and stronger AI monetization could support that valuation, although partners identified cost as the most common customer concern. They also said AI purchasing decisions are increasingly moving from IT departments toward business units.
Still, partners are aggressively expanding their ServiceNow practices, with one reporting a sharp increase in interest following April pricing changes that included AI in each tier.
Top ETF Exposure
The Global X Cloud Computing ETF (NASDAQ:CLOU), YieldMax Magnificent 7 Fund of Option Income ETF (NYSE:YMAG) and Dana Unconstrained Equity ETF (NYSE:DUNK) hold meaningful ServiceNow positions, so significant fund flows can translate into corresponding trading activity in NOW shares.
Price Action
NOW Stock Price Activity: ServiceNow shares are trading lower by 1.84% at $151.93 at the time of publication on Wednesday, according to Benzinga Pro data.
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