ServiceNow Inc (NYSE:NOW) is among the many finest S&P 500 shares with highest upside potential. On February 10, Oppenheimer named ServiceNow Inc (NYSE:NOW) amongst its prime US software program shares to look at. Whereas acknowledging that the software program trade has lagged behind different IT segments in monetizing AI, Oppenheimer believes corporations like ServiceNow have potential to regain momentum. It sees this momentum coming from areas like improved execution and strategic initiatives.
On February 5, Truist minimize its value goal on ServiceNow to $175 from $240 however stored a Purchase score. The agency stated the sector pullback is generally about lengthy‑time period worth considerations, not close to‑time period fundamentals, making AI adoption extra necessary.
Truist famous that corporations counting on seat‑based mostly fashions have been the weakest performers since 2025. It sees AI use instances and a shift away from seat‑based mostly deployments as key methods for software program distributors going ahead.
On January 28, ServiceNow launched its This fall 2025 outcomes that confirmed each income and earnings surpassed Wall Road expectations. Income jumped 20.5% YoY to $3.57 billion, beating the consensus estimate of $3.53 billion. The EPS of $0.92 topped $0.88 anticipated. The quarter was buoyed by robust progress within the subscription enterprise, which accounts for the majority of the corporate’s income, with gross sales on this phase rising 21% YoY to $3.47 billion.
ServiceNow expects progress in its subscription enterprise to speed up in Q1 2026. It guided subscription gross sales for the quarter within the vary of $3.65 billion to $3.66 billion, suggesting a progress of 21.5% YoY on the midpoint. ServiceNow expects its acquisition of Moveworks to spice up subscription income by 100 foundation factors in Q1 in addition to full-year 2026.
Headquartered in Santa Clara, California, ServiceNow Inc (NYSE:NOW) gives enterprises the platform they should streamline their workflow. It gives a cloud-based computing platform enhanced with AI that allows companies to create and handle automated processes extra successfully.
Whereas we acknowledge the potential of NOW as an funding, we consider sure AI shares provide larger upside potential and carry much less draw back danger. In the event you’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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Disclosure: None. This text is initially revealed at Insider Monkey.
