- ServiceNow's Q1 2025 subscription revenue surged by 20%, reaching $3.005 billion, reflecting strong growth and market demand.
- With 72 high-value deals, the company set a new record for net new annual contract value, signaling robust business momentum.
- Wall Street eyes a potential upside in ServiceNow's stock, driven by bullish price targets and favorable brokerage recommendations.
ServiceNow Inc. (NOW, Financial) showcased impressive results in the first quarter of 2025, reporting a noteworthy 20% increase in subscription revenue, which now totals $3.005 billion. The company's success in securing 72 deals over $1 million each has set a new benchmark for net new annual contract value, illustrating its strong market positioning. Further cementing investor confidence, ServiceNow has revised its fiscal year 2025 subscription revenue forecast to a range of $12.64 billion to $12.68 billion, aiming for up to 19% growth.
Wall Street Analysts Forecast
In the wake of ServiceNow's solid performance, 40 analysts have provided one-year price targets for the company, with the average target price set at $1,023.69. This target implies a significant upside potential of 25.96% from the current trading price of $812.70, with estimates ranging from a high of $1,300.00 to a low of $716.00. Investors seeking more detailed projections can refer to the ServiceNow Inc (NOW, Financial) Forecast page.
The consensus from 47 brokerage firms has resulted in an average brokerage recommendation of 1.9 for ServiceNow, indicating an "Outperform" status. This rating underscores the company's favorable market perception, with the scale spanning from 1 (Strong Buy) to 5 (Sell).
Moreover, based on GuruFocus' proprietary metrics, the estimated GF Value for ServiceNow Inc in one year stands at $1,056.38. This suggests a potential upside of 29.98% from its current price of $812.70. The GF Value reflects GuruFocus' calculated fair market value based on historical trading multiples, historical business growth, and future performance estimates. For comprehensive data, visit the ServiceNow Inc (NOW, Financial) Summary page.
