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Investing.com - Mizuho (NYSE:MFG) raised its price target on ServiceNow (NYSE:NOW) to $1,200 from $1,100 on Thursday, while maintaining an Outperform rating on the stock. The software giant, currently valued at $198 billion, has demonstrated impressive gross profit margins of 79% and maintains strong financial health according to InvestingPro analysis.
The price target increase follows ServiceNow’s strong second-quarter results, which included constant currency current remaining performance obligations (cRPO) growth of 21.5% year-over-year, exceeding both company guidance and market expectations. This performance aligns with the company’s broader growth trajectory, having achieved 21% revenue growth over the last twelve months.
Mizuho highlighted accelerating momentum in generative AI for ServiceNow, noting sharply rising volume and deal sizes, including a record $20 million Now Assist deal. The firm also pointed to impressive large deal activity, including significant net new logo wins.
For the third quarter, ServiceNow guided for cRPO growth of 18% year-over-year in constant currency, which aligns with Street forecasts.
Mizuho expressed confidence that ServiceNow is well-positioned for high growth over the next few years, driven by ongoing demand for workflow automation, strong cross-sell opportunities, and AI monetization.
In other recent news, ServiceNow reported strong second-quarter 2025 financial results, surpassing earnings and revenue expectations. The company achieved non-GAAP earnings per share of $4.09, significantly above the consensus estimate of $3.57. Total (EPA:TTEF) revenue reached $3.215 billion, exceeding the forecast of $3.121 billion and marking a 22.4% year-over-year increase. Following these results, several analyst firms adjusted their price targets for ServiceNow. Needham raised its price target to $1,200, citing strong subscription revenue and internal AI efficiencies. Citi also increased its target to $1,234 due to the company’s performance and AI momentum. Meanwhile, UBS adjusted its price target slightly downward to $1,100 but maintained a Buy rating. JMP Securities reiterated its Market Outperform rating with a $1,300 price target, highlighting the company’s robust quarterly performance.
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