ServiceNow (NOW) shares target $30 billion in revenue with analysts backing agent AI

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 has set a long-term goal of achieving subscription revenue of more than $30 billion by 2030, driven by the growth of artificial intelligence
• Major institutions, including Vanguard and Jennison Associates, sharply increased their holdings of NOW in the fourth quarter
• The stock is trading near $91, just off its 12-month high of $211.48, with a consensus price target of $144.71.
• Analysts hold a moderate buy consensus, despite cutting price targets across the board following the recent sell-off

---

ServiceNow (NOW) stock is trading at around $91, down sharply from its 12-month high of $211.48, but Wall Street isn’t far away yet.

ServiceNow, Inc., Now

Cantor Fitzgerald reiterated his Overweight rating and $122 price target on NOW following the ServiceNow Financial Analyst Day and Knowledge User event in Las Vegas this week. The company said meetings with senior management and industry partners reinforced its view of ServiceNow’s position as the governance and orchestration layer in the agent enterprise.

Service now It used the events to showcase the expanded use of AI on its platform. Customers and partners noted the company’s focus on outcomes and knowledge- and action-based AI systems, rather than purely probabilistic approaches.

The company has also set long-term financial goals, including an expectation to achieve subscription revenue of more than $30 billion by 2030. Cantor Fitzgerald described these goals as achievable.

ServiceNow has expanded its partnership with Amazon Web Services to include AI governance and agent deployment. AWS Marketplace transactions for ServiceNow products have already exceeded $1 billion. The two companies introduced a governance architecture that combines ServiceNow AI Control Tower and Amazon Bedrock AgentCore.

ServiceNow also announced a partnership with Accenture to deliver enterprise-scale agentic AI, and has ongoing collaboration with NVIDIA and Microsoft on AI control and management.

The company recently made its Build Agent tool publicly available in ServiceNow Studio, allowing developers to build applications using natural language prompts powered by human 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 the fourth quarter, and now owns more than 101 million NOW shares worth about $15.6 billion. Jennigan Associates increased its position by 280.1%, while Nordea, Pictet and Swedbank also made significant additions. Overall 87.18% Now stock Owned by institutions and hedge funds.

Plato Investment Management raised its stake by 400.6% in the fourth quarter, bringing its total stake to 24,805 shares worth approximately $3.8 million.

On the inside side, CEO Jacqueline P. Kahne 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 sold about $2.5m worth of shares in the last three months.

Analysts cut targets but maintained buy ratings

Many analysts trimmed their price targets after widespread selling. Piper Sandler lowered his goal from $200 to $140 but kept his overweight rating. Wells Fargo went from $185 to $160, while also gaining weight. Stifel Nicolaus lowered his target to $120 while maintaining buy.

KeyCorp set an $85 target with an Underweight rating — the only bearish value in the mostly constructive analyst pack.

Bernstein SocGen raised its target to $236 while maintaining a market perform rating, and Truist Securities reiterated a buy confirmation at $120.

In the first quarter, ServiceNow reported revenue of $3.77 billion, up 22.1% year over year, which was in line with consensus. Earnings per share came in at $0.97, in line with estimates. The stock’s 50 day moving average is at $102.80 and its 200 day moving average is at $132.71.