Key Stats for ServiceNow Stock
- 52-Week Range: $81 to $211
- Current Price: $112
- Street Mean Target: $142
- Street High Target: $236
- Analyst Consensus: 34 Buys, 9 Outperforms, 4 Holds, 1 Sell
- TIKR Model Target (Dec. 2030): $284
ServiceNow Stock Down 45% from Peak While AI ACV Just Hit $750 Million
ServiceNow, Inc. (NOW) is the enterprise workflow automation platform embedded in 90% of the Fortune 500, and after Q1 2026, it just raised its full-year subscription revenue guidance to a range of $15.735 billion to $15.775 billion while signaling that its AI monetization run rate is already at $750 million with a target of $1.5 billion by year-end.
NOW stock has fallen roughly 45% from its 2025 high, pulled down alongside the broader software sector rout driven by fears that AI agents would hollow out traditional software platforms.
The Q1 print answered that concern directly: subscription revenue grew 19% year-over-year in constant currency, above the high end of guidance, and current remaining performance obligations grew 21% in constant currency, a 100-basis-point beat versus guidance.
CEO Bill McDermott said on the Q1 earnings call, “There has never been a tailwind for ServiceNow like AI,” framing the platform as the governance layer that every enterprise AI deployment must run through regardless of which model or hyperscaler is involved.
The company closed Q1 with 630 customers generating more than $5 million in annual contract value, five more crossing the $50 million threshold versus a year earlier, and a renewal rate of 97% inclusive of the Moveworks acquisition.
NOW also completed the early acquisition of Armis during Q1, a cyber asset intelligence company already in 9 of the 10 largest companies in the world, which management flagged as a significant TAM expander for the security workflow business that already crossed $1 billion in ACV organically in Q3 2025.
Fifty percent of net new business is now coming from non-seat-based pricing models, including token consumption and infrastructure connectors, a structural shift that directly addresses the “seat compression” concern that has weighed on the software sector.
Why Analysts Still Rate NOW Stock a Buy After a 45% Selloff
The overwhelming analyst conviction on NOW comes down to one thing: this is not a company being disrupted by AI agents. It is the platform those agents require to function inside an enterprise.
Q1 2026 revenue came in at $3.77 billion, up 22.1% year-over-year, and the Street projects Q2 2026 revenue of around $3.93B, extending the growth acceleration.
For full-year 2026, consensus expects around 20% to 21% revenue growth in constant currency, consistent with the guidance management provided even after absorbing a 75-basis-point headwind from delayed Middle East on-premise deals.
CFO Gina Mastantuono confirmed on the Q1 call, “We’re raising our subscription revenues by $205 million at the midpoint to $15.735 billion to $15.775 billion.”
Q1 2026 free cash flow came in at $1.67 billion, a 44.2% FCF margin, and consensus projects full-year FCF margins expanding into the mid-to-high thirties as Armis integration headwinds normalize.
NOW stock’s Q1 EPS (normalized) was $0.97, and consensus projects Q2 2026 EPS of around $0.86, a quarter that absorbs Armis integration costs before the platform leverage reasserts in the second half.
Of 48 analysts covering the stock, 34 rate it a Buy, 9 Outperform, 4 Hold, and 1 Sell, with a Street mean target of around $142 per share and a high target of around $236 per share.
At a current price of around $112, the mean target implies roughly 27% upside, and the high-conviction bull case from the top of the distribution implies more than double that.
The specific driver of that conviction is NOW Assist, the company’s AI offering, which President and COO Amit Zavery confirmed in May is being used in pre-production or production environments by 70% of the company’s AI customers, a transition from experimentation to enterprise-scale deployment that is visible in the revenue trajectory.
Given a platform that 90% of the Fortune 500 cannot unplug, a renewal rate that has held at 97%, and a Now Assist ACV target raised 50% in a single quarter, NOW stock appears to be undervalued at the price the software rout has produced.
ServiceNow Stock Leads Atlassian and Freshworks on Revenue Growth at Every Point in the Curve
ServiceNow stock’s revenue grew 22.1% year-over-year in Q1 2026, outpacing Atlassian (TEAM) at 31.71% that quarter but maintaining a consistent lead over Freshworks (FRSH) at 16.49%.
The more telling comparison is durability: NOW has held revenue growth above 20% for four consecutive reported quarters while FRSH has ranged between 14.48% and 17.54% across the same stretch, and TEAM’s Q1 2026 spike to 31.71% is projected to decelerate sharply, with consensus putting TEAM at around 10% growth by Q1 2027 against NOW’s projected 19.24%.
By Q2 2026, the estimate spread tells the story cleanly: NOW at around 22%, TEAM at around 14%, and FRSH at around 14%, a gap that holds through the full forward curve and reflects NOW’s structural position at the center of enterprise IT workflows rather than a point-solution exposure.
Is ServiceNow Stock Undervalued in 2026? What the TIKR Model Shows
TIKR’s base case values ServiceNow stock at approximately $284 by December 2030, implying around 152% total return from the current price of approximately $112, or roughly 22% annualized over the next 4.6 years.
If ServiceNow executes at the midpoint of its own guidance trajectory, sustaining around 16% revenue CAGR through 2030 with net income margins expanding toward the low thirties, the model produces a stock price near $539 by late 2034 on TIKR’s extended projection, roughly 379% total return.
The downside scenario, anchored to around 15% revenue CAGR and margins holding near current levels, produces a target near $385 by 2030, still around 243% total return from the current price, implying roughly 15% annualized.
The upside scenario, where NOW’s AI monetization inflects faster than the base case as enterprises scale autonomous workforce deployments and the Armis security TAM opens, puts the stock near $732 by 2030, around 551% total return or roughly 24% annualized.
The Armis and Veza acquisitions are not yet generating material revenue, and the base case does not require large-scale M&A to close the gap between $112 and $284.
Is ServiceNow stock a buy right now?
The analyst consensus is strongly bullish: 34 Buy ratings, 9 Outperform, 4 Hold, and 1 Sell out of 48 analysts, with a mean price target of around $142 and a high target of around $236.
The stock is currently trading at around $112, below the mean target by roughly 27%.
The key variable is whether Now Assist ACV conversion continues at the pace Q1 2026 demonstrated, with $750 million in run-rate AI revenue already achieved against a $1.5 billion full-year target.
What is the price target for NOW stock?
The Street mean target is approximately $142 per share, with a high target of approximately $236.
TIKR’s mid-case valuation model puts NOW at approximately $284 by December 2030, implying around 152% total return and roughly 22% annualized from the current price of around $112.
The $142 mean target reflects analyst prudence around near-term Armis integration costs, while the TIKR model extends the horizon to capture the full compound of the AI monetization cycle.
Should You Invest in ServiceNow, Inc.?
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