ServiceNow (NYSE:NOW) Inc. has reached an impressive milestone, with its stock hitting an all-time high of $1080.51. This peak reflects a significant surge in investor confidence, as evidenced by the company's remarkable 1-year return of 53.77%. According to InvestingPro data, the company maintains impressive gross profit margins of 79.24% and has achieved a robust revenue growth of 23.48% over the last twelve months. The ascent to this record price level underscores the robust performance of the cloud computing company, which specializes in digital workflow solutions. Investors are evidently optimistic about ServiceNow's growth prospects and market position, as the stock's journey to its all-time high has outpaced many of its tech peers over the past year. InvestingPro analysis reveals the company maintains a "GREAT" overall financial health score, with 18 additional ProTips available to subscribers, including detailed insights on valuation metrics and growth potential.
In other recent news, ServiceNow has seen several significant developments. Financial services firm Needham has raised its stock price target for ServiceNow from $1,075.00 to a new target of $1,150.00, maintaining a "Buy" rating. This decision was influenced by discussions during a recent investor meeting regarding ServiceNow's upcoming renewal cycle and product pricing. Similarly, Scotiabank (TSX:BNS) initiated coverage of ServiceNow with a Sector Outperform rating and a price target of $1,230, highlighting the company's success in leveraging artificial intelligence.
ServiceNow's third-quarter subscription revenue saw a 22.5% year-over-year increase, reaching $2.715 billion. The full-year 2024 subscription revenue forecast has been revised upwards to between $10.655 billion and $10.66 billion. Analyst firms Mizuho (NYSE:MFG) Securities, TD Cowen, Piper Sandler, and Stifel have also raised their price targets for ServiceNow, reflecting confidence in the company's growth trajectory.
The company has deepened its strategic alliance with Microsoft (NASDAQ:MSFT), integrating its AI agent with Microsoft Copilot to enhance front-office business processes. Furthermore, ServiceNow has extended collaborations with industry leaders NVDA and SNOW, appointed Amit Zavery as President, COO, and CPO, and continued operations in the federal sector despite potential concerns arising from its partnership with Carahsoft.
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