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Investing.com - RBC Capital has raised its price target on ServiceNow (NYSE:NOW) to $1,200 from $1,100 while maintaining an Outperform rating on the stock. According to InvestingPro data, the company currently trades at $992.32, with analyst targets ranging from $734 to $1,300.
The firm cited ServiceNow’s "impressive quarter" performance that exceeded high investor expectations despite ongoing macroeconomic concerns. The company’s strong execution is reflected in its robust 78.5% gross profit margin and 21.1% revenue growth over the last twelve months. RBC noted that macroeconomic conditions remained consistent and aligned with the company’s expectations.
ServiceNow’s Now Assist product continues to gain momentum, with management expressing confidence in reaching their $1 billion 2026 Now Assist ACV target alongside more than $15 billion in subscription revenue.
Following ServiceNow’s guidance raise for calendar year 2025, RBC believes the company’s outlook is conservative and sees potential for upside. The investment firm views the guidance as providing room for future positive adjustments.
RBC Capital also suggested that ServiceNow’s results indicate positive prospects for software vendors with clear artificial intelligence roadmaps that can consolidate spending, though it characterized ServiceNow as a "one-of-one" company in the space. The company maintains a strong financial health score of GOOD according to InvestingPro metrics, operating with moderate debt levels and strong cash flows.
In other recent news, ServiceNow reported a strong second quarter of 2025, exceeding expectations across multiple financial metrics. This robust performance has led to several analysts revising their outlooks on the company. Piper Sandler raised its price target for ServiceNow to $1,150, highlighting the company’s solid execution and strong demand for AI-related solutions. Similarly, Cantor Fitzgerald reiterated an Overweight rating with a price target of $1,200, noting the impressive results in what they described as a volatile software market. Stifel also increased its price target from $1,050 to $1,200, citing a 21.5% growth in constant currency current remaining performance obligations, which surpassed guidance by 200 basis points.
In other developments, ServiceNow’s stock received a Sector Weight rating from KeyBanc, which pointed out the company’s ability to overcome recent market concerns related to weak government spending data. Meanwhile, NowVertical Group announced its participation in the Qlik AI Reality Tour event in São Paulo, Brazil. The company, recognized as Qlik’s 2024 Latin America Channel Growth Partner of the Year, will present a case study on its collaboration with Natural One, a natural juice company. These recent events highlight the ongoing advancements and strategic partnerships in the tech industry.
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