Strong first-quarter financial results have analysts on Wall Street singing ServiceNow’s praises. Revenue and earnings at the workflow management software company topped analysts’ estimates, and full-year guidance was pretty much in line with Wall Street forecasts. Shares advanced nearly 8% in early trading Thursday before the market open. Analysts praised the report as a reassuring sign to technology and software investors who have been focused lately on prospects for an economic slowdown and its effect on tech spending. ServiceNow exceeded expectations “against a low-bar,” and “demonstrated resilience in a volatile macroeconomic environment,” according to Citigroup. Here’s a look at what analysts on Wall Street are saying following ServiceNow’s quarterly results. JPMorgan, overweight, $1,020 price target Analyst Mark Murphy’s 12-month price target implies roughly 25% upside ahead. “The company’s growth at scale in combination with its robust free cash flow generation and large total addressable market — ServiceNow estimates its TAM will grow to $275B in FY26 — puts it in an elite category of fast-growing and cash flow-generative software companies,” JPMorgan said. “We believe ServiceNow’s focus on growing organically and the seamless nature of its products and the feedback that frequently comes up in customer and partner checks will serve it well as it seeks to deploy its platform.” Wells Fargo, overweight, $1,150 price target Analyst Michael Turrin noted a “strong tone across multiple fronts” in response to ServiceNow’s first-quarter results. The price target on the stock calls for about 42% upside. “We continue to focus on the highest quality franchises, and are tending toward those businesses with strong platform positioning, balanced growth profiles, and management teams with proven track records — of which NOW meets all three criteria,” the analyst said. Deutsche Bank, buy, $1,150 price target Analyst Brad Zelnick views ServiceNow’s full-year roadmap as “de-risked,” and said the latest results should reassure investors wary of software stocks. “ServiceNow’s 1Q results should provide a sense of relief for both NOW shares and broader Software with results, guidance, and go forward commentary broadly upbeat against what is perceived at least by investors to be a challenged backdrop,” Zelnick said. Goldman Sachs, buy, $1,150 price target ServiceNow is an attractive defensive stock, analyst Kash Rangan said. “ServiceNow has the potential to be a relatively defensible business in the event of a macro economic slowdown, in our view,” Rangan said. “The company has a unique combination of a core IT service management and operations business, which together comprise roughly 70-75% of revenues. The core can be argued as a defensive product category, especially as IT departments gain increasing influence under potentially tightening wallet conditions.” Citigroup, buy, $1,128 price target The bank’s price target implies nearly 29% upside in the stock over the coming 12 months. “Stepping back, we view results as a sign of strong execution and potentially more resilient IT spending which may offer positive read thrus to MSFT and CRM,” analyst Tyler Radke said. “[W]e see NOW having significant core and adjacent market opportunities ahead with GenAI and new [customer relationship management] products combined with consistent margin expansion.” Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
