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Investing.com - Piper Sandler raised its price target on ServiceNow (NYSE:NOW) to $1,150 from $1,120 while maintaining an Overweight rating on the stock. The company, currently trading at $993.41 with a market capitalization of $205.7 billion, has shown impressive performance metrics according to InvestingPro data.
The research firm cited ServiceNow’s "solid quarter" in which the company exceeded expectations across all top and bottom-line metrics, supported by "solid execution and robust AI-related demand." This performance is reflected in the company’s strong 78.5% gross profit margins and 21.1% revenue growth over the last twelve months, as reported by InvestingPro.
Piper Sandler noted that ServiceNow is experiencing a stable demand environment, with the company’s NNACV (Net New Annual Contract Value) outperformance contributing to its subscription revenue guidance.
The firm expressed being "impressed by the large deal momentum" alongside ServiceNow’s success with AI adoption, which "punctuated solid results" for the second quarter.
ServiceNow management indicated that the demand environment remained resilient and that U.S. federal business performed in line with prior expectations, according to Piper Sandler’s analysis.
In other recent news, ServiceNow reported strong second-quarter 2025 earnings, which led to several adjustments in analyst ratings and price targets. Cantor Fitzgerald reiterated an Overweight rating with a price target of $1,200, citing impressive performance across multiple metrics. Stifel also raised its price target to $1,200, noting a 21.5% growth in constant currency current remaining performance obligations (cRPO), which exceeded guidance by 200 basis points. Mizuho (NYSE:MFG) followed suit, increasing its price target to $1,200 while maintaining an Outperform rating due to the company’s strong results.
Needham joined in by raising its price target to $1,200, highlighting ServiceNow’s ability to exceed the high-end of guidance for Subscription Revenue and cRPO by 200 basis points. UBS, however, lowered its price target to $1,100 from $1,125, maintaining a Buy rating but expressing a cautious outlook despite the 200 basis point beat in cRPO growth. These developments reflect a generally positive sentiment among analysts, driven by ServiceNow’s robust quarterly performance and strategic execution.
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