• Analyst Confidence: Jefferies maintains a Buy rating, while BNP Paribas highlights ServiceNow (NYSE:NOW) as a top software pick with an Outperform rating and a raised price target.
• Robust Growth Drivers: The company's subscription revenue growth, strong remaining performance obligations, and increasing U.S. federal demand are poised to fuel future revenue expansion.
• Strategic AI Position: ServiceNow is a significant player in the enterprise AI market, with strategic interest in AI startups like Decagon, underscoring its commitment to artificial intelligence innovation.

ServiceNow (NYSE:NOW) sells enterprise software solutions that help companies manage IT work and other business tasks. It also competes in the growing market for AI tools used by large businesses. Jefferies maintains a Buy rating on the stock, although the update lists the action as a hold. ServiceNow trades at $138.61 when the update is posted.

BNP Paribas analyst Stefan Slowinski also views ServiceNow favorably. He names it a top software pick, keeps an Outperform rating and raises his price target 14% to $160.00. That target is about 14% above ServiceNow’s Oct. 8 price of $139.80.

Slowinski says subscription revenue growth and current remaining performance obligations have stabilized. The latter measure is the value of contracted work ServiceNow expects to turn into revenue within 12 months. BNP Paribas estimates its underlying growth at roughly 19%, while ServiceNow’s raised fiscal 2026 financial outlook implies about 19% organic subscription growth through year-end.

Slowinski expects the core business, improving U.S. federal demand, and AI, security and usage-based products to support faster revenue growth into fiscal 2027. AI startup Decagon has held early acquisition talks with ServiceNow and other companies, as highlighted by Business Insider. ServiceNow is down $1.71, or 1.22%, at $138.61.