Why ServiceNow Stock Edged Past the Market Today
Key Points
-
That pundit is now convinced the shares are a buy.
-
The company could be looking at 20% revenue growth this year, after all.
Is the Great Software Stock Rout over?
It’s too soon to say, but some titles in the category enjoyed a bit of a comeback Monday. One was ServiceNow (NYSE: NOW), a specialist in optimizing IT workflows in businesses. Investors traded the company up by more than 1.1%, which was just good enough to beat the S&P 500 index’s 1% bump. An analyst upgrade had more than a little to do with that.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
From hold to buy
That upgrade was made by BNP Paribas Exane’s Stefan Slowinski, who currently rates ServiceNow stock outperform, rather than his previous neutral. He also thinks it could hit $140 per share; his previous level was $120.
People in a conference room engaging in a video conference.
Image source: Getty Images.
According to reports, Slowinski believes ServiceNow has the qualities to succeed in the beaten-down software space. Specifically, the analyst believes a company needs to show stabilization in its core business, increased monetization of its artificial intelligence (AI) functionalities, and decent profit margins.
Slowinski feels that the company is still in front of encouraging growth opportunities, to the point where it could post a roughly 20% increase in subscription revenue this year over last.
AI for the win
ServiceNow is an assertive and enthusiastic adopter of AI, and as such, I think this gives the company an edge. Its latest offerings lean heavily into active AI assistance, and this dovetails nicely with the needs of modern enterprises. ServiceNow stock was unfairly punished in many ways recently, and it’s deserving of at least a new look by investors.
Should you buy stock in ServiceNow right now?
Before you buy stock in ServiceNow, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ServiceNow wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $514,000!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,105,029!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 187% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 16, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ServiceNow. The Motley Fool has a disclosure policy.
