ServiceNow, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for ServiceNow, Inc. (NOW).
Give me a comprehensive price target analysis for ServiceNow, Inc. (NOW).
I’ve completed the horizontal trendline drawings for NOW and prepared a comprehensive price-target analysis using the data you provided.
Drawing update
- Horizontal trendlines drawn (extending 30 days into the future, right edge of chart):
- Low Target: 734.00 (color: green)
- Median Target: 1167.50 (color: blue)
- High Target: 1300.00 (color: red)
Technical note on lines:
- Start point: 2025-10-07 (today)
- End point: 2025-11-06 (30 days into the future)
- Ticker: NOW
Now, the comprehensive analysis.
Executive Summary
- NOW faces a robust demand environment for the ServiceNow platform and a strong recurring revenue model, underpinned by healthy gross margins and improving operating leverage.
- The current price of 912.84 sits near the 50-day moving average, with a mixed near-term momentum signal (RSI in the low-40s and MACD negative), suggesting a cautious stance near-term but with significant upside if growth momentum and margin expansion continue.
- Analysts show a constructive longer-term view, with a low target of 734.00, a median target of 1167.50, and a high target of 1300.00, implying potential upside to a median target of roughly 28% and up to ~42% to the high target from today’s price.
- The company carries a rich valuation (forward P/E ~54.66) given elevated growth expectations, but leverage is modest (net cash position after accounting for cash and debt) and margins are strong (gross margins ~78%, operating margins ~12%).
Fundamental Analysis
- Key metrics snapshot
- Current price: 912.84
- Market Cap: 189.43B
- Enterprise Value: 185.61B
- Trailing P/E: 114.97
- Forward P/E: 54.66
- Price to Book: 17.33
- Return on Equity (ROE): 16.95%
- Return on Assets (ROA): 5.17%
- Profit Margin: 13.78%
- Gross Margin: 78.52%
- Operating Margin: 12.07%
- Debt/Equity: 22.04
- Total Cash: 6.13B
- Total Debt: 2.41B
- Beta: 0.92
- Cash/debt posture: NOW sits on a substantial cash cushion (~6.13B) vs modest debt (~2.41B), indicating favorable liquidity and a capacity to fund growth initiatives without near-term financing pressure.
- Valuation context: High trailing P/E (~115) vs forward P/E (~55) reflect strong growth expectations priced in, but valuation remains rich relative to many software peers. A continued focus on ARR growth, net retention, and margin expansion will be critical to justify the forward multiple.
Table: Key Fundamentals
| Metric | Value |
|---|---|
| Current Price | 912.84 |
| Market Cap | 189.43B |
| Enterprise Value | 185.61B |
| Trailing P/E | 114.97 |
| Forward P/E | 54.66 |
| P/B | 17.33 |
| ROE | 16.95% |
| ROA | 5.17% |
| Profit Margin | 13.78% |
| Gross Margin | 78.52% |
| Operating Margin | 12.07% |
| Debt/Equity | 22.04 |
| Total Cash | 6.13B |
| Total Debt | 2.41B |
| Dividend Yield | — (none) |
| Beta | 0.92 |
Earnings Analysis
- Recent Earnings Summary (selected quarters)
- 2025-06-30: Total Revenue 3.215B; Operating Income 358M; EBITDA 649M; Net Income 385M; Diluted EPS 1.84; Basic EPS 1.86
- 2025-03-31: Total Revenue 3.088B; Operating Income 451M; EBITDA 721M; Net Income 460M; Diluted EPS 2.20; Basic EPS 2.22
- 2024-12-31: Total Revenue 2.957B; Operating Income 374M; EBITDA 622M; Net Income 384M; Diluted EPS 1.83; Basic EPS 1.86
- 2024-09-30: Total Revenue 2.797B; Operating Income 418M; EBITDA 666M; Net Income 432M; Diluted EPS 2.07; Basic EPS 2.09
- 2024-06-30: Total Revenue 2.627B; Operating Income 240M; EBITDA 476M; Net Income 262M; Diluted EPS 1.26; Basic EPS 1.27
- EPS Trend (trailing)
- Current: Diluted EPS 4.26392; Basic EPS 4.26392 (quarterly reflection)
- +1Q: Diluted EPS 4.49; Basic EPS 4.49
- 0Y (year ago): Diluted EPS 16.88804; Basic EPS 16.88804
- +1Y: Diluted EPS 20.03088; Basic EPS 20.03088
- EPS Revisions (and sentiment)
- 0Q: Up Last 7d = 2; Up Last 30d = 2; Down Last 30d = 0; Down Last 7d = 0
- +1Q: Up Last 7d = 1; Up Last 30d = 1; Down Last 30d = 1; Down Last 7d = 1
- 0Y: Up Last 7d = 2; Up Last 30d = 2; Down Last 30d = 0; Down Last 7d = 0
- +1Y: Up Last 7d = 2; Up Last 30d = 3; Down Last 30d = 1; Down Last 7d = 0
- Interpretation: Net positive revisions across both near-term and longer horizons, supporting a constructive earnings trajectory if revenue growth and margin stability persist.
Table: Earnings Summary (selected quarters)
| Quarter ended | Total Revenue | Operating Income | EBITDA | Net Income | Diluted EPS | Basic EPS |
|---|---|---|---|---|---|---|
| 2025-06-30 | 3.215B | 358M | 649M | 385M | 1.84 | 1.86 |
| 2025-03-31 | 3.088B | 451M | 721M | 460M | 2.20 | 2.22 |
| 2024-12-31 | 2.957B | 374M | 622M | 384M | 1.83 | 1.86 |
| 2024-09-30 | 2.797B | 418M | 666M | 432M | 2.07 | 2.09 |
| 2024-06-30 | 2.627B | 240M | 476M | 262M | 1.26 | 1.27 |
Earnings Quality
- Revenue growth has been solid year-over-year over the last five quarters, with gross margins remaining high (~78%), indicating strong product mix and pricing power.
- Net income shows variability quarter-to-quarter, but normalization of EBITDA indicates meaningful operating cash flow generation capacity.
- EPS volatility is more pronounced in quarterly GAAP numbers, but the trend toward positive revisions and strong gross margins supports a constructive longer-term view if revenue acceleration continues.
Technical Analysis
- Price action and levels
- NOW is trading around 912.84, near the 50-day moving average in the low-900s, suggesting price is hovering around near-term trend support.
- RSI (14) is in the 40s, indicating modest momentum and potential for a rebound if buyers step in.
- MACD (12,26,9) remains negative, signaling current near-term momentum remains bearish, with a potential for a bullish cross if MACD line closes above the signal line.
- 50-day Moving Average (recent)
- The 50-day MA has fluctuated in the mid-900s to low-1000s during the last 60 days; several observations show price oscillating around the MA, with the latest data suggesting the price is just below or near the MA, implying potential near-term resistance on the downside.
- Key implications
- The stock exhibits neutral-to-bearish near-term momentum but strong longer-term fundamental tailwinds. A move above the 50-day MA with a rising MACD could unlock upside, with the charts aligning to the analyst targets if earnings momentum strengthens.
Table: Technical Indicators Snapshot
| Indicator | Recent Observation |
|---|---|
| Price | 912.84 |
| 50-day MA (approx.) | ~914–918 (range observed in latest 60 days) |
| RSI (14) | ~43 |
| MACD | -1.3 (vs Signal ~2.5 on latest datapoints) |
Note: The 60-day moving average data shows the 50-day moving average wavering around the high-900s to around 1,000; the current price is near the lower end of that band.
Analyst Consensus & Price Targets
- Current analyst coverage: 40 analysts
- Target Low / Median / High: 734.00 / 1167.50 / 1300.00
- Current price: 912.84
- Target Mean: 1,147.84
- Implied upside (to targets) from current price:
- To Low: -19.6%
- To Median: +27.9%
- To High: +42.4%
- Key catalysts
- Ongoing platform adoption, higher net retention, and expansion into adjacent workflows
- Efficiency gains and cost optimization in go-to-market
- AI/automation enhancements within the Now Platform that improve customer value and time-to-value
- Growth drivers and risks
- Drivers: recurring revenue growth, enterprise expansion, cross-sell, international expansion, and margin expansion
- Risks: macro slowdown, competitive pressure, longer sales cycles in enterprise, potential multiple compression if growth decelerates
Table: Analyst Consensus & Price Targets
| Item | Value |
|---|---|
| Current Price | 912.84 |
| Target Low | 734.00 |
| Target Median | 1167.50 |
| Target High | 1300.00 |
| Target Mean | 1,147.84 |
| Number of Analysts | 40 |
Price Target Analysis (Short, Mid, Long-Term)
- Short-Term (3 months)
- Target: 1167.50 (median) — upside ~28%
- Justification:
- Positive EPS revisions in the near term (as per revisions data)
- Ongoing strength in bookings and gross margins, with EBITDA normalization
- Analyst consensus remains constructive, and any upside surprise in ARR growth or efficiency gains could push shares toward the median target
- Key drivers:
- Revenue growth momentum, strong gross margins, continued operating leverage
- Execution on AI-enabled automation and workflow capabilities
- Mid-Term (12 months)
- Target: 1300.00 (high) — upside ~42%
- Justification:
- If NOW accelerates ARR growth and expands net retention, multiple expansion could occur as investors gain confidence in durable profitability
- Positive revisions across multiple horizons (0q, +1q, 0y, +1y) indicate improving sentiment
- Key drivers:
- Margin expansion, improved efficiency, cross-sell across a larger customer base, enterprise-scale deployments
- Long-Term (3+ years)
- Target: 1600.00 (longer-term, not in the base analyst targets provided)
- Justification:
- Assuming sustained mid-teens to high-teens revenue growth, continued gross margin resilience, and disciplined operating expense management
- Potential multiple expansion with a higher-quality SaaS growth story and AI-enabled product improvements
- Key drivers:
- TAM expansion, platform adoption, deeper analytics and AI capabilities, and disciplined capital allocation
- Note: The official analyst targets do not include a published long-term horizon in the provided data; the 1600 target is a reasoned long-horizon scenario given the company’s trajectory and industry dynamics.
Summary table for targets (anchored to provided levels)
| Horizon | Target Level | Upside vs Current | Rationale |
|---|---|---|---|
| Short-Term (3m) | Median 1167.50 | ~28% | Near-term revisions, solid gross margins, and continued ARR growth. |
| Mid-Term (12m) | High 1300.00 | ~42% | Growth and margin improvement, possible multiple expansion if outlook strengthens. |
| Long-Term (3+ years) | Proposed 1600.00 | ~74% | Sustained growth, platform expansion, AI enhancements, and durable profitability. |
Key Risks & Opportunities
- Key Risks
- Valuation risk: High trailing P/E and rich forward multiple could compress if growth slows or if the market shifts away from SaaS / cloud software multiples.
- Execution risk: Slower enterprise conversion, longer sales cycles, or churn pressures could dampen ARR growth.
- Competitive dynamics: Intense competition in enterprise IT and workflow automation could pressure pricing and cross-sell velocity.
- Key Opportunities
- AI-enabled enhancements: Deeper automation and AI-assisted workflows can improve time-to-value and deepen expansion into existing customers.
- International expansion: Additional growth opportunities outside the U.S. can boost ARR and diversify revenue.
- Margin leverage: Continued product mix optimization and operating leverage can improve profitability beyond current levels.
Investment Recommendation
- Time horizon: 12–24 months
- Recommendation: Moderate Buy / Buy (with monitoring)
- Rationale:
- Upside potential in the median/high targets (1167.5–1300) supported by positive EPS revisions, strong gross margins, and robust free cash flows.
- Valuation is rich, but the company’s cash position and relatively modest debt provide flexibility to invest in growth initiatives and share repurchases/capital allocation.
- Near-term momentum is mixed (price around 50-day MA, RSI ~43, MACD negative), suggesting a watchful stance for a breakout above near-term resistance. A shift in sentiment or a reacceleration of ARR growth could unlock meaningful upside.
Expected return potential over 12–24 months
- Base case: approximately 25–40% upside to the median/high targets, depending on growth trajectory and multiple normalization.
- Bear case: downside risk remains if near-term momentum deteriorates or if growth guidance slacks, potentially testing low-700s to mid-800s in adverse scenarios.
Appendix: Data references used
- Price targets and analyst consensus:
- Low 734.00, Median 1167.50, High 1300.00; Current 912.84; Mean 1147.84; Analysts: 40
- Earnings summary (selected quarters):
- 2025-06-30: Revenue 3.215B; EBITDA 649M; Net Income 385M; Diluted EPS 1.84
- 2025-03-31: Revenue 3.088B; EBITDA 721M; Net Income 460M; Diluted EPS 2.20
- 2024-12-31: Revenue 2.957B; EBITDA 622M; Net Income 384M; Diluted EPS 1.83
- 2024-09-30: Revenue 2.797B; EBITDA 666M; Net Income 432M; Diluted EPS 2.07
- 2024-06-30: Revenue 2.627B; EBITDA 476M; Net Income 262M; Diluted EPS 1.26
- EPS Trend and Revisions:
- Current diluted EPS 4.26392; +1Q diluted EPS 4.49; 0Y diluted EPS 16.88804; +1Y diluted EPS 20.03088
- Revisions: 0Q upLast7d 2, upLast30d 2; +1Q upLast7d 1, upLast30d 1; +1Y upLast7d 2, upLast30d 3
- Technical indicators (last 60 days):
- 50-Day MA values around the mid-900s to low-1000s in July–October window
- RSI (14) hovering ~40s in late data
- MACD (12,26,9) negative near the latest data
- Drawn trendlines:
- Low Target 734.00 (green)
- Median Target 1167.50 (blue)
- High Target 1300.00 (red)
If you’d like, I can tailor the long-term target (e.g., 1,600–1,800) with a more formal model (e.g., base-case revenue CAGR, margin trajectory, and a defined exit multiple scenario) and run a sensitivity table showing upside/downside for different growth/compression scenarios.