AlphAIAlphAI — Financial news for AI agents
gurufocus.comOCT 132 min read$NOW

Wall Street Thinks ServiceNow's 19% Growth May Be a Floor, Not a

BNP Paribas analysts believe ServiceNow's 19% growth rate may accelerate, with AI and security sectors driving future revenue. The firm expects AI to contribute 9% of annual recurring revenue by year-end and security to reach 10% by 2027. ServiceNow has raised its fiscal 2027 subscription revenue growth forecast by 120 basis points. BNP Paribas raised its price target to $160 from $140.

Original reporting
gurufocus.com
Published Oct 13, 2026, 6:06 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Oct 13, 2026, 6:43 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About AlphAI AI DeskScoring methodologyReport an issue
AlphAI market briefFinancial news
Primary signal
$NOW
Bullish
high confidence
Mentioned
$NOW
Relevance
7/10
AlphAI data visualization · based on gurufocus.com
Decision brief

The 30-second read

$NOWBullishMed
01

Why it matters

BNP's upgraded target could trigger short-term buying interest.

02

Market read

Analyst price target raise may lift ServiceNow stock and benefit peers in the enterprise SaaS space.

03

What to watch

Execution risk and macro slowdown could temper subscription expansion.

Relevance 7/10Novelty 7/10Timing: immediate

Background

ServiceNow is a leading workflow automation platform; recent guidance suggests strong subscription growth.

Company-level read

Ticker impact

$NOWBullishHigh confidence
Context

BNP Paribas raised ServiceNow's price target to $160 from $140, indicating a bullish outlook on its 19% growth and AI/security revenue mix.

Expected impact

likely upward pressure as investors price in higher multiple expectations.

Evidence & confidence

The new target reflects confidence in sustained subscription growth and AI/security expansion, which could attract buying.

Market effects

Sector

Positive for enterprise software and AI-enabled SaaS providers.

Regional

U.S. tech sector may see modest lift.

Global

Reinforces broader AI adoption narrative.

Counterpoint

What could challenge this read

If AI/security growth stalls, the higher target may be premature.

Key entities

  • company
    ServiceNow Inc.

    Enterprise software provider.

  • analyst
    BNP Paribas

    Investment bank issuing the price target upgrade.

Read at source← All news

Related articles

OCT 13
$NOWMed

BNP Paribas Raises FY26 Guidance for ServiceNow (NOW) on Strong

BNP Paribas raised its FY26 guidance for ServiceNow (NOW) due to strong growth expectations, projecting 19% organic subscription growth and 9% AI-related revenue. The firm increased its price target to $160. GuruFocus values NOW at $244.60, suggesting a 41.7% undervaluation. NOW's GF Score is 88/100, indicating strong financial health and growth potential.

gurufocus.com3 min
OCT 13
$NOWMed

NOW Telecom seeks review of P4-billion NTC fee assessment

NOW Corp. disclosed that its associate, NOW Telecom, is contesting a P4.04-billion fee assessment by the NTC, citing discrepancies in capital amounts used for calculations. NOW Telecom requested a review and recomputation of the assessments dating back to 2005 and asked for the collection to be suspended pending the review. NOW Corp. will evaluate the developments and their potential financial reporting implications.

bworldonline.com3 min
OCT 12
$NOWMed

RBC raises ServiceNow stock price target on AI momentum

RBC Capital raised its price target on ServiceNow (NYSE:NOW) to $176 from $130, citing AI momentum and strong fundamentals. The stock trades at $142.88, below its Fair Value. Other analysts also raised targets, citing deal momentum and federal wins. ServiceNow reported 22% revenue growth and a 75% gross profit margin over the last year.

investing.com2 min
OCT 12
$CRMMed

Salesforce Advances 3% on Bank of America Double Upgrade to Buy With $285 Target; ServiceNow Climbs 3%, Palantir Holds Steady

Salesforce (CRM) rose 3% to $236.83 after Bank of America upgraded it to Buy with a $285 target, citing AI's role in entrenching its platforms. ServiceNow (NOW) also gained 3%, while Palantir (PLTR) fell 0.2%. Salesforce's Q2 revenue grew 10.8% to $11.35B, with Agentforce ARR exceeding $1.5B. Bank of America's upgrade reverses earlier AI disruption concerns.

247wallst.com6 min
OCT 12
$NOWMedAI 8/10

ServiceNow Stock Rose 42% Since June 30 While Forward Earnings Rose 4%. Here’s Where It Could Go by 2030

ServiceNow (NOW) stock rose 42% since June 30, closing at $140.86 on October 9, despite only a 4% increase in forward earnings. The rally was driven by a sector-wide AI-driven surge and CEO Bill McDermott's optimistic outlook on AI-driven revenue growth. The company's Q2 revenue grew 24% to $3.987 billion, slightly above estimates. Q3 guidance projects 20.5% subscription revenue growth, with earnings expected to rise 6%. Analysts anticipate 23% EPS growth in 2027.

finance.yahoo.com2 min