ServiceNow (NOW – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mark Murphy from J.P. Morgan maintained a Buy rating on the stock and has a $1,020.00 price target.
Mark Murphy’s rating is based on ServiceNow’s ambitious and expansive vision in the AI sector, which positions the company as a central platform for AI-enabled businesses. The reaffirmation of their financial targets for 2026, including a $15 billion subscription revenue goal despite facing foreign exchange headwinds, demonstrates strong confidence in their growth trajectory. Additionally, ServiceNow’s introduction of new financial targets for 2027, with expectations of continued margin expansion, further supports the positive outlook.
ServiceNow’s projection of $1 billion in Now Assist ACV by 2026, with significant growth in usage, indicates a strong product-market fit and successful adoption of their AI products. The company’s robust free cash flow generation and large total addressable market, estimated to reach $275 billion by FY26, highlight its potential for sustained growth. These factors, combined with their strategic focus on expanding their multi-product offerings, underpin the Buy rating given by Mark Murphy.
According to TipRanks, Murphy is a 5-star analyst with an average return of 10.0% and a 58.89% success rate. Murphy covers the Technology sector, focusing on stocks such as Intuit, Adobe, and Microsoft.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $1,300.00 price target.