ServiceNow, Inc. Stock Price Targets

Below is a comprehensive analysis for ServiceNow, Inc. (NOW) as of 2025-10-10, including the requested horizontal trendlines for Low, Median, and High price targets, and a structured, investors-focused write-up with tables for key data.

Note on the trendlines drawn

Horizontal trendlines drawn (extended 30 days into the future, to 2025-11-09) for:
- Low Target: 734.00 (color: blue)
- Median Target: 1175.00 (color: green)
- High Target: 1300.00 (color: orange)

Technical note: The trendlines were plotted using NOW as the ticker and extended to 2025-11-09 to reflect a 30-day forward horizon from today.

Now, the full analysis.

Executive Summary

Investment thesis: NOW remains a leading cloud-based platform for enterprise workflow automation and IT service management. The company shows durable revenue growth, healthy profitability, and strong balance sheet support (net cash). However, the stock trades at a premium multiple (forward P/E ~55x) relative to broader software peers, leaving less room for multiple expansion and making upside potentially sensitive to operating leverage, demand cycles, and headline earnings volatility.
Price targets and implied upside from today (NOW: 917.95):
- Low Target (734): ~20% downside potential
- Median Target (1175): ~28% upside potential
- High Target (1300): ~41% upside potential
Implied risk/reward: Moderate upside potential from current levels if execution remains solid and market expectations stay constructive. Downside risk exists if demand softens or if multiple compression accelerates.

Key numerical snapshot (selected items)

Current price: 917.95
Market cap: ~$190.49B; Enterprise value: ~$186.02B
Valuation: trailing P/E ~115.47x; forward P/E ~54.97x; P/B ~17.43x
Profitability: gross margin ~78.52%; operating margin ~12.07%; net margin ~13.78%
Leverage: debt to equity ~22%; total cash ~$6.13B; total debt ~$2.41B; net cash ~$3.72B
Beta: ~0.92 (moderate volatility vs. market)
Analysts: 39 opinions; target range 734–1300; median 1175; mean ~1147.78

Fundamental Analysis

Valuation snapshot
- Current price: 917.95
- Market cap: $190.49B
- Enterprise value: $186.02B
- Trailing P/E: 115.47x
- Forward P/E: 54.97x
- PEG ratio: not provided
- Price to Book: 17.43x
- Return on Equity (ROE): 16.95%
- Return on Assets (ROA): 5.17%
- Profit margins: 13.78%
- Gross margins: 78.52%
- Operating margins: 12.07%
- Debt to equity: 22.04x
- Total cash: $6.13B
- Total debt: $2.41B
- Dividend yield: N/A
- 5-year average dividend yield: N/A
- Beta: 0.92
- Net cash position (approx.): +$3.72B (cash minus debt)

Metric	Value
Current price	917.95
Market cap	$190,492,082,176
Enterprise value	$186,015,776,768
Trailing P/E	115.47x
Forward P/E	54.97x
P/B	17.43x
ROE	16.95%
ROA	5.17%
Profit margin	13.78%
Gross margin	78.52%
Operating margin	12.07%
Debt-to-equity	22.04x
Total cash	$6.13B
Total debt	$2.41B
Net cash	~$3.72B
Dividend yield	N/A
Beta	0.92

Earnings summary (selected quarters)
- 2025-06-30 (latest quarter in the provided series)
  - Revenue: ~$3.216B
  - EBITDA (normalized): $649M
  - Operating income: $358M
  - Net income: $385M
  - Diluted EPS: $1.84
- 2025-03-31
  - Revenue: ~$3.088B
  - EBITDA (normalized): $721M
  - Operating income: $451M
  - Net income: $460M
  - Diluted EPS: $2.20
- 2024-12-31
  - Revenue: ~$2.957B
  - EBITDA (normalized): $622M
  - Operating income: $374M
  - Net income: $384M
  - Diluted EPS: $1.83
- 2024-09-30
  - Revenue: ~$2.797B
  - EBITDA (normalized): $666M
  - Operating income: $418M
  - Net income: $432M
  - Diluted EPS: $2.07
- 2024-06-30
  - Revenue: ~$2.627B
  - EBITDA (normalized): $476M
  - Operating income: $240M
  - Net income: $262M
  - Diluted EPS: $1.26
Revenue trend and earnings quality
- Quarter-by-quarter revenue shows a meaningful uptrend from 2024-06 to 2025-06, with total revenue rising from ~$2.63B to ~$3.22B in the most recent quarter.
- Gross profit rose across periods (e.g., gross profit ~$2.49B in most recent quarter vs ~$2.18B in 2024-06).
- Normalized EBITDA improved notably in the earlier 2025 quarters (721M in 2025-03) before moderating in 2025-06 to 649M.
- Diluted EPS varied across quarters (from ~1.26 to ~2.20), reflecting mix effects, cost structure, and share count stability (Diluted shares ~209M consistently).

Table: Selected Earnings Snapshot (USD millions except per-share where indicated)

Quarter	Total Revenue	EBITDA (Normalized)	Operating Income	Net Income	Diluted EPS
2025-06-30	3,215	649	358	385	1.84
2025-03-31	3,088	721	451	460	2.20
2024-12-31	2,957	622	374	384	1.83
2024-09-30	2,797	666	418	432	2.07
2024-06-30	2,627	476	240	262	1.26

EPS trend and revisions
- EPS Trend (from provided data):
  - Current quarter (0q): Diluted EPS ~4.26 (varies by metric interpretation in the dataset)
  - +1q: ~4.49
  - 0y (twelve months trailing): ~16.89
  - +1y: ~20.04 (forward-looking proxy)
- EPS Revisions (count of analyst revisions)
  - 0q: Up last 7 days = 2; Up last 30 days = 2; Down last 30 days = 0; Down last 7 days = 0
  - +1q: Up last 7 days = 1; Up last 30 days = 1; Down last 30 days = 1; Down last 7 days = 1
  - 0y: Up last 7 days = 2; Up last 30 days = 2; Down last 30 days = 0; Down last 7 days = 0
  - +1y: Up last 7 days = 2; Up last 30 days = 3; Down last 30 days = 1; Down last 7 days = 0
- Interpretation: Net upgrades have outpaced downgrades across the latest periods, suggesting modest positive earnings sentiment over both near and intermediate horizons. The wide range in reported EPS figures across periods reflects quarterly volatility in revenue mix and expense timing, not necessarily deteriorating fundamentals.

Technical Analysis

Price action and near-term momentum
- Current price: 917.95
- 50-day moving average (MA): around 910 (latest data around 2025-10-09 shows MA near 910–915 region)
- Price is slightly above the 50-day MA, indicating a mild near-term bullish tilt but not a strong breakout.
RSI (14): Latest reading around 33.6 (late Sep–early Oct). This sits in the lower end of the neutral zone and near oversold territory, implying modest negative momentum but not extreme oversold.
MACD (12,26,9): Latest data shows a negative MACD reading around -2.8 with a near-term negative signal (as of 2025-10-09). Earlier in September there was a bullish cross; current setup suggests mixed momentum and potential for a re-acceleration if macro/operational drivers turn favorable.
Key technical read
- Price is trading above the 50-day MA by a modest margin, RSI suggests room for upside before becoming overbought, and MACD is not decisively bullish in early October. If the stock can sustain momentum, the 1,000-level psychological area and the recent trendline may act as near-term resistance.

Summary of technical indicators

50-day MA: ~910 (trend is sideways to modestly bullish relative to price)
RSI (14): ~33.6 (near oversold; potential for a bounce)
MACD: Negative as of 2025-10-09 (watch for a potential re-cross to positive)

Technical visualization (selected levels)

Trendlines drawn at NOW price targets (30-day forward): 734 (blue), 1175 (green), 1300 (orange)

Analyst Consensus & Price Targets

Number of analysts: 39
Target High / Low / Median / Mean
- High: 1300
- Low: 734
- Median: 1175
- Mean: 1147.78
Current price: 917.95
Implied upside from current:
- To Median (1175): ~28%
- To High (1300): ~41%
- To Low (734): ~-20%
Potential catalysts
- Strengthening enterprise demand for IT workflows and AI-driven automation
- Expansion across existing customers (net retention, expansions within large accounts)
- Margin improvements from efficiency gains and scale
- Potential acceleration of platform adoption and cross-sell within NOW’s product suite
Analysts’ sentiment: Net upgrades have partially outweighed downgrades in the recent revisions, suggesting a cautiously positive view on earnings durability and growth trajectory.

View of consensus data

Target range indicates a meaningful upside from current levels to the median and high targets, but the stock trades at a high multiple, so upside is contingent on continued revenue growth, margin expansion, and durable cash generation.

Table: Analysts’ Price Targets

Metric	Value
Current price	917.95
Number of analysts	39
Target High	1300.0
Target Median	1175.0
Target Low	734.0
Target Mean	1147.78

Price Target Analysis (Short, Mid, Long-Term)

Short-Term (3 months)
- Target: 1175 (Median target)
- Justification: Near-term consistency of revenue growth and improving operating leverage could support a move toward consensus median targets. Positive earnings revisions in recent periods (net upgrades > downgrades) reinforce moderate optimism. Key drivers include continued ARR increases, stable gross margins, and prudent cost control.
- Key drivers: quarterly revenue progression, continued efficiency gains, customer wins in larger enterprise cohorts, and a steady path of EPS stability.
Mid-Term (12 months)
- Target: 1300 (High target)
- Justification: If NOW sustains its ARR growth, expands gross margins, and improves operating leverage, the market could re-rate shares toward the high end of the current equity research range. The stock’s growth profile and the scale of the cloud software market offer multiple expansion potential, subject to execution and macro stability.
- Key drivers: accelerating ARR growth, higher dollar-based net expansion rate, operating margin improvements, and continued strong cash flow generation.
Long-Term (3+ years)
- Target: 1,600 (illustrative long-term target)
- Justification: A multi-year expansion in total addressable market, deeper product adoption, and ongoing cloud-native platform advantages could justify a higher, longer-term price target. If NOW reaches broader cross-sell across verticals and expands into adjacent enterprise workflow segments, a conservative long-term upside is plausible.
- Key drivers: sustained revenue growth, higher product-margin mix, greater cross-sell within enterprise customers, and scalable cloud economics.
- Note: The long-term target is scenario-based and should be treated as a representative upside case in a diversified portfolio; it is not an official consensus target.

Summary table: Price targets (in USD)

Horizon	Target	Implied Upside vs. 2025-10-10 price
Short-Term (3 mo)	1175	~28%
Mid-Term (12 mo)	1300	~41%
Long-Term (3+ yrs)	1600	~74%

Key Risks & Opportunities

Key risks
- Valuation risk: NOW trades at elevated multiples (forward P/E ~55x). Any slowdown in demand or macro weakness could trigger multiple compression.
- Competitive pressure: Intense competition in the enterprise cloud and workflow automation space could impact growth.
- Execution risk: Sustained cross-sell momentum and platform adoption across large, global customers is essential to maintaining healthy margins.
- Economic sensitivity: Enterprise IT budgets can be cyclical; a weaker macro environment could affect deal flow.
Key opportunities
- AI-enabled process automation and workflow optimization could drive higher ARR per customer and improved net retention.
- Expansion into new verticals and geographies can broaden the TAM and accelerate growth.
- Margin expansion through scalable cloud operations and more efficient go-to-market spend.

Investment Recommendation

View: Hold / Moderate Buy (with a positive tilt if execution and demand trends stay firm)
Time horizon: 12–24 months
Expected return potential: approximately 25–40% to the 12–24 month horizon, with upside risk to the 1300 target if earnings revisions stay positive and the pipeline remains robust.
Rationale: While valuation remains premium, NOW’s durable growth story and cash generation support a constructive stance. The balance of upside (to the 1175–1300 area) against downside risk (to the 734 level, per the defined trendlines) suggests a balanced risk-reward profile. Investors should monitor:
- Revenue growth and ARR expansion
- Margin trajectory (operating and gross margins)
- Laggard indicators such as RSI and MACD for momentum shifts
- Changes in analyst revisions and updated price targets

Appendix: Data sources and tables used

Key metrics and market data (price, market cap, EV, margins, debt/cash, beta) provided in the prompt.
Earnings summary (quarterly figures for 2024–2025) extracted from the CSV snippet.
EPS trend and revisions (current, +1q, 0y, +1y) as provided.
Technical indicators: 50-day MA, RSI, MACD data (last 60 days) provided.
Analyst targets (Low/Median/High/Mean) and number of opinions provided.

If you’d like, I can adjust the long-term target to reflect a more conservative or more aggressive scenario, or add a sensitivity table showing how the price targets respond to changes in key assumptions (growth rate, margin trajectory, and multiple on earnings).