ServiceNow (NOW) Aims for $30B Revenue by 2030 Amid Strong Analyst Support for Agentic AI Strategy

TLDR

• Cantor Fitzgerald reaffirmed its Overweight rating on NOW, setting a $122 price target, following its attendance at ServiceNow’s analyst day and Knowledge event in Las Vegas
• ServiceNow established a long-term objective to achieve over $30 billion in subscription revenue by 2030, with agentic AI growth identified as a primary driver
• Leading institutions, including Vanguard and Jennison Associates, significantly expanded their NOW stock holdings during the fourth quarter
• The stock is currently trading around $91, considerably below its 12-month peak of $211.48, yet it carries a consensus price target of $144.71
• Analysts generally maintain a Moderate Buy consensus, although price targets have been broadly reduced in the wake of a recent market selloff

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(SeaPRwire) –   ServiceNow (NOW) shares are currently trading near $91, a significant drop from their 12-month peak of $211.48, yet Wall Street analysts remain supportive.

ServiceNow, Inc., NOW

Cantor Fitzgerald reaffirmed its Overweight rating and $122 price target for NOW after attending ServiceNow’s financial analyst day and Knowledge user conference in Las Vegas this week. The firm indicated that discussions with senior leadership and industry collaborators reinforced its perspective on ServiceNow’s role as the governance and orchestration framework for the agentic enterprise.

During these events, ServiceNow highlighted the expanded integration of agentic AI across its platform. Both customers and partners emphasized the company’s commitment to delivering tangible outcomes and developing AI systems centered on knowledge and action, as opposed to solely probabilistic methodologies.

Furthermore, the company outlined its long-term financial projections, which include an aim for over $30 billion in subscription revenue by the year 2030. Cantor Fitzgerald deemed these objectives to be attainable.

ServiceNow has broadened its collaboration with Amazon Web Services to encompass AI governance and agent deployment. Transactions for ServiceNow products via AWS Marketplace have already exceeded $1 billion. The two entities unveiled a governance framework that integrates ServiceNow AI Control Tower with Amazon Bedrock AgentCore.

Additionally, ServiceNow announced a partnership with Accenture aimed at deploying agentic AI solutions at an enterprise level, and it maintains ongoing collaborations with NVIDIA and Microsoft concerning AI control and governance.

The company recently launched its Build Agent tool for general availability within ServiceNow Studio, enabling developers to construct applications through natural language prompts driven by Anthropic models.

Institutional Buying Remains Strong

Notwithstanding the stock’s recent downturn, institutional investors have been actively increasing their holdings. Vanguard Group significantly raised its stake by 404.5% in Q4, now possessing more than 101 million NOW shares, estimated to be worth approximately $15.6 billion. Jennison Associates expanded its position by 280.1%, with Nordea, Pictet, and Swedbank also making substantial purchases. In total, institutions and hedge funds collectively own 87.18% of NOW stock.

Plato Investment Management also increased its stake by 400.6% in Q4, accumulating a total of 24,805 shares valued at approximately $3.8 million.

Regarding insider activity, executive Jacqueline P. Canney divested 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. Over the last three months, insiders have collectively sold approximately $2.5 million worth of stock.

Analysts Cut Targets But Hold Buy Ratings

Following a widespread market selloff, several analysts adjusted their price targets downwards. Piper Sandler lowered its target from $200 to $140 but retained an Overweight rating. Wells Fargo revised its target from $185 to $160, also maintaining an Overweight rating. Stifel Nicolaus decreased its target to $120 while upholding a Buy rating.

KeyCorp established an $85 target with an Underweight rating, standing as the sole bearish perspective amidst an otherwise largely positive analyst consensus.

Conversely, Bernstein SocGen elevated its target to $236, while keeping a Market Perform rating, and Truist Securities reaffirmed its Buy rating with a $120 target.

For Q1, ServiceNow announced revenues of $3.77 billion, marking a 22.1% increase year-over-year, which aligned with market expectations. Earnings per share (EPS) reached $0.97, also consistent with estimates. The stock’s 50-day moving average is currently $102.80, and its 200-day average stands at $132.71.