Needham analyst Mike Cikos has maintained their bullish stance on NOW stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mike Cikos has given his Buy rating due to a combination of factors that highlight ServiceNow’s strong performance and future potential. The company’s current remaining performance obligations (cRPO) have exceeded expectations, showing a year-over-year growth of 20.5% in constant currency, which surpasses the 18% guidance. This growth is partly attributed to early renewals as ServiceNow approaches a significant renewal cohort in the fourth quarter of calendar year 2025.
Furthermore, ServiceNow’s Now Assist product is expected to continue its cross-selling success, with management anticipating over $500 million in annual contract value by the end of calendar year 2025. This positions the company ahead of its schedule to reach $1 billion in Pro Plus annual contract value by calendar year 2026. The growth of Now Assist has been largely organic, driven by a significant increase in average selling price, and its consumption is expected to become more impactful by calendar year 2027. Additionally, ServiceNow’s strong execution across various sectors, particularly in federal results, underscores its robust performance and supports the Buy rating.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $1,026.00 price target.
Based on the recent corporate insider activity of 179 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NOW in relation to earlier this year.