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Research Alert: CFRA Maintains Strong Buy Rating On Shares Of Servicenow Inc.

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

NOW held its Analyst Day last week, updating medium-term financial targets and detailing its AI monetization strategy, which reinforced our bullish view on its AI opportunity. Now Assist ACV exceeded $750M at the end of Q1 and the firm is on track to reach $1.5B by year-end, with a pathway to reach $9 billion by 2030, powered by its Action Fabric and Autonomous Workers. We believe NOW is navigating the AI transition effectively with a platform where AI strengthens rather than threatens the core business, supported by multiple growth engines including Security & Risk, Data & Analytics, and CRM. Management provided a base case scenario for subscription revenues to reach $30B by 2030, with a more optimistic path to $32B (20% CAGR). Margin expansion is also expected to resume in 2027, with clear line of sight to achieve a Rule of 60+ by 2030. We maintain our Strong Buy rating and raise our 12-month target price to $134 from $110. We keep our 2026 EPS view at $4.13, but lift our 2027 EPS to $5.09 from $5.05.

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