Street View: AI momentum helps ServiceNow silence skeptics

ServiceNow

23/07/2026 09:43

** ServiceNow NOW.N on Wednesday raised its forecast for annual subscription revenue for the second time after beating Q2 revenue and profit estimates, driven by growing demand for its AI-powered software
** Shares up 7.41% at $102.53 in premarket trading
     
AI FEARS ON PAUSE
** J.P. Morgan ("overweight," PT: $150) says NOW's results and outlook reinforced its confidence in co's growing position with enterprise customers through its AI, security and orchestration offerings, putting it on track to make strong progress toward, and potentially exceed its revenue and profitability targets
** RBC Capital Markets ("outperform," PT: $130) says that while questions remain around organic growth and the co's Q3 and 2026 guidance, NOW is well positioned to capitalize on AI demand and gain a larger share of enterprise spending
** Morningstar (fair value: $165) says "NOW offers one of the best blends of growth and margins in enterprise software, and results continue to show AI is not hurting the firm’s fundamentals"
** Jefferies ("buy," PT: $140) says "NOW heads into H2 with healthy momentum and a reasonable valuation"
     

 (Reporting by Kanishka Ajmera in Bengaluru)
 ((Kanishka.Ajmera@thomsonreuters.com))