Why ServiceNow Stock Topped the Market on Thursday

ServiceNow (NOW) had its price target raised to $150 by Bank of America, citing 21.5% RPO growth and 23% subscription growth in Q2. The company's security segment surpassed $1B in annual contract value. ServiceNow also expanded a multi-year deal with Tech Mahindra to integrate AI. According to the bank, the valuation is 23x 2027 FCF.

Bank of America raised price targets for ServiceNow (to $150), Figma (to $33), Workday (to $205), Adobe (to $220), and Snowflake (to $395), citing AI-driven growth potential. ServiceNow gained 6.5% on Wednesday, while others rose 3-4%. Analysts note AI could expand these companies' products and revenue, easing earlier disruption fears.

ServiceNow (NOW) shares rose 7.52% after BofA analyst Tal Liani raised his price target to $150, citing improving software multiples and easing AI disruption fears. The stock is down 33% from its peak but trades at a discount to its 3-year average multiple.

Israeli defense company Elbit reports a $32 billion order backlog, equivalent to 4.4% of Israel's GDP. The backlog is driven by demand for defense technologies amid global conflicts. Elbit plans to expand production and hire 2,000 more employees. Additionally, Israeli tech startups have seen significant foreign investments, including acquisitions by Tencent, Cisco, and Instacart. Israel's economy is projected to grow 4.4% to 5.6% in 2027, with stable inflation and a narrowing fiscal deficit.

ServiceNow acquired Armis, a cybersecurity startup, for $7.75 billion in 2026. The deal, the largest in ServiceNow's history, helped the company integrate cybersecurity into its platform. Despite initial stock declines due to market fears about AI, ServiceNow's stock later surged, with Q2 2026 revenue up 24% to $3.99 billion. Armis' founders, Dibrov and Izrael, received significant payouts and joined ServiceNow's leadership.

ServiceNow shares rose about 3.1% in morning trading after analysts issued bullish views. Wells Fargo raised its price target to $175 from $160 and kept an Overweight rating, while another analyst initiated coverage with a Buy rating citing security and AI workflow automation. Most covering analysts maintain Buy-equivalent ratings, consensus “Strong Buy.”