TLDR
Cantor Fitzgerald reiterated an Overweight rating on NOW with a $122 price target after attending ServiceNow’s analyst day and Knowledge event in Las Vegas
ServiceNow set a long-term target of more than $30 billion in subscription revenue by 2030, driven by agentic AI growth
Major institutions including Vanguard and Jennison Associates sharply increased their NOW holdings in Q4
The stock trades near $91, well off its 12-month high of $211.48, with a consensus price target of $144.71
Analysts hold a Moderate Buy consensus, though price targets were cut across the board following a recent selloff
ServiceNow (NOW) stock is trading around $91, down sharply from its 12-month high of $211.48, but Wall Street isn’t walking away just yet.
Cantor Fitzgerald reiterated its Overweight rating and $122 price target on NOW following ServiceNow’s financial analyst day and Knowledge user event in Las Vegas this week. The firm said meetings with senior management and industry partners strengthened its view of ServiceNow’s position as the governance and orchestration layer of the agentic enterprise.
ServiceNow used the events to showcase expanded agentic AI usage on its platform. Customers and partners pointed to the company’s focus on outcomes and AI systems built around knowledge and action, rather than purely probabilistic approaches.
The company also laid out long-term financial targets, including a projection of more than $30 billion in subscription revenue by 2030. Cantor Fitzgerald called those targets achievable.
ServiceNow has expanded its partnership with Amazon Web Services to cover AI governance and agent deployment. AWS Marketplace transactions for ServiceNow products have already surpassed $1 billion. The two companies introduced a governance architecture combining ServiceNow AI Control Tower and Amazon Bedrock AgentCore.
ServiceNow also announced a partnership with Accenture to deliver agentic AI at enterprise scale, and has ongoing collaborations with NVIDIA and Microsoft around AI control and governance.
The company recently made its Build Agent tool generally available in ServiceNow Studio, allowing developers to build applications using natural language prompts powered by Anthropic models.
Institutional Buying Remains Strong
Despite the stock’s decline, institutional investors have been adding aggressively. Vanguard Group boosted its stake by 404.5% in Q4, now holding over 101 million NOW shares valued at around $15.6 billion. Jennigan Associates increased its position by 280.1%, while Nordea, Pictet, and Swedbank also made large additions. Overall, 87.18% of NOW stock is held by institutions and hedge funds.
Plato Investment Management raised its stake by 400.6% in Q4, bringing its total to 24,805 shares worth roughly $3.8 million.
On the insider side, executive Jacqueline P. Canney sold 8,927 shares on April 24 at an average price of $89.60. Director Paul Edward Chamberlain sold 1,500 shares in February at $101.17. Insiders have sold around $2.5 million worth of stock over the past three months.
Analysts Cut Targets But Hold Buy Ratings
Several analysts trimmed their price targets after a broad selloff. Piper Sandler cut its target from $200 to $140 but kept an Overweight rating. Wells Fargo moved from $185 to $160, also Overweight. Stifel Nicolaus reduced its target to $120 while maintaining Buy.
KeyCorp set a $85 target with an Underweight rating — the lone bearish outlier in a mostly constructive analyst pack.
Bernstein SocGen raised its target to $236 while keeping a Market Perform rating, and Truist Securities reiterated Buy at $120.
In Q1, ServiceNow reported revenue of $3.77 billion, up 22.1% year-over-year, matching consensus. EPS came in at $0.97, in line with estimates. The stock’s 50-day moving average sits at $102.80, and the 200-day average is at $132.71.
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