ServiceNow Inc. (NYSE: NOW) has been one of the strongest performers in enterprise software. The stock now trades near $940/share, up from about $492/share five years ago. Growth has been fueled by rising demand for workflow automation, steady margin expansion, and early adoption of AI across its platform. But with the valuation running high and competition heating up, the outlook appears mixed.
ServiceNow has recently made headlines with its $8 billion deal to acquire Informatica and new upgrades to its Agentforce AI platform. These moves show how fast enterprise software is evolving and set the stage for increased competition and opportunity across the industry.
This article explores where Wall Street analysts think ServiceNow could trade by 2027. We have pulled together consensus targets, growth forecasts, and valuation models to outline the stock’s possible path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
ServiceNow trades at about $941/share today. The average analyst price target is $1,148/share, which suggests roughly 20% upside. Forecasts span a wide range:
- High estimate: ~$1,300/share
- Low estimate: ~$734/share
- Median target: ~$1,147/share
- Ratings: 32 Buys, with a handful of Holds and Sells
It looks like analysts see some room for gains, but the wide spread highlights uncertainty. The takeaway is that expectations are already high, and ServiceNow may need to deliver stronger results to break much higher.
For investors, the potential upside looks steady, but with the stock already priced at a premium, it leaves less margin for error.
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ServiceNow: Growth Outlook and Valuation
The model inputs highlight a story of slowing but still healthy growth:
- Revenue growth: expected at about 19% annually through 2027
- Operating margins: expanding from 28% today to around 32% by 2027
- Shares currently trade at about 52x forward earnings
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model points to ~$1,473/share by 2027
- That implies a +56% total return, or about 22% annualized gains
These figures suggest ServiceNow may keep compounding steadily, though not at the rapid pace of its earlier years. The valuation looks demanding, so upside depends on execution in growth and margin expansion.
For investors, ServiceNow appears to be a quality long-term holding, but the premium multiple requires consistent delivery.
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What’s Driving the Optimism?
ServiceNow continues to benefit from strong demand for digital workflows. Enterprises are looking for ways to automate and streamline operations, and the company’s subscription model creates recurring revenue and visibility. Early AI integrations like Agentforce may also open new revenue streams and deepen customer reliance on the platform.
As scale increases, margins are improving, giving analysts confidence that profitability will continue to rise alongside revenue. Combined with international expansion, these drivers help explain why many still view ServiceNow as a long-term compounder.
Bear Case: Valuation and Competition
The key risks are valuation and competition. At about 52x forward earnings, ServiceNow already trades at a premium, leaving little cushion if growth slows.
Rivals like Microsoft and Salesforce are investing heavily in AI and automation, which could capture market share and pressure ServiceNow’s growth. Slowing expansion in mature markets like the U.S. and Europe could also weigh on results, making international growth more critical but less predictable.
The bear case is that ServiceNow’s valuation assumes near-perfect execution. Any stumble in growth or margins could lead to a sharp re-rating.
Outlook for 2027: What Could ServiceNow Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests ~$1,473/share by 2027. That would represent a +56% total return, or roughly 22% annualized gains. This outcome assumes revenue growth of about 19% annually and margins expanding toward 32%.
While this forecast looks attractive, it already includes a fair amount of optimism. To deliver more, ServiceNow would need to beat consensus on AI adoption, international expansion, or profitability. Without that, gains may be steady but not spectacular.
For investors, ServiceNow still looks like a solid compounder, but much of the future upside depends on exceeding current expectations.
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