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Investing.com - RBC Capital maintained its Outperform rating and $1,200.00 price target on ServiceNow (NYSE:NOW) following the company’s quarterly earnings report. According to InvestingPro data, analysts have set targets ranging from $734 to $1,300, with the consensus recommendation strongly favoring the stock at 1.45 (where 1 is Strong Buy).
The firm highlighted ServiceNow’s strong quarter, noting healthy enterprise demand and robust results from its U.S. Federal business segment. The company reported impressive 21.1% revenue growth over the last twelve months, reaching $12.06 billion, with a remarkable 78.5% gross profit margin.
RBC Capital observed that momentum for Now Assist, the company’s AI offering, continues to build and exceed management’s internal expectations, with AI Control Tower positioning ServiceNow as a differentiated AI operating system.
ServiceNow raised its calendar year 2025 guidance across all metrics, though the company incorporated 50-100 basis points of conservatism regarding federal deal timing due to potential procurement process impacts from the government shutdown.
RBC Capital maintained its positive outlook on ServiceNow, expressing belief that artificial intelligence represents a long-term growth tailwind for the company.
In other recent news, ServiceNow reported its third-quarter earnings for 2025, surpassing market expectations with an earnings per share of $4.82, compared to the forecasted $4.26. Revenue also exceeded predictions, reaching $3.41 billion against a forecast of $3.35 billion. Wolfe Research reiterated an Outperform rating with a $1,210 price target, highlighting the company’s strong subscription revenue growth of 20.5% year-over-year. Goldman Sachs raised its price target to $1,250, maintaining a Buy rating, after ServiceNow outperformed expectations with a 21.5% subscription revenue growth. Piper Sandler reiterated an Overweight rating, citing strong federal demand and AI traction, and projected a $500 million Now Assist Annual Contract Value by year-end. Meanwhile, Wells Fargo raised its price target to $1,275, maintaining an Overweight rating, and revised estimates higher due to ServiceNow’s raised 2025 guidance. These developments underscore the company’s robust financial performance and positive outlook from analysts.
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