ServiceNow’s (NOW) Growth Forecasts Improve — Analysts Say More Upside Ahead

Core Insights - ServiceNow, Inc. (NYSE:NOW) is highlighted as a prominent AI stock, with Wells Fargo analyst Michael Turrin raising the price target to $1,275.00 from $1,225.00, maintaining an Overweight rating due to an improved FY25-26 outlook [1][2] - The company is recognized as one of the best growth assets in the large-cap software sector, with revised estimates reflecting increased revenue and free cash flow projections for FY25 and FY26 [2] Financial Estimates - FY25 revenue is projected at $13.2 billion, with free cash flow (FCF) of $4.5 billion and earnings per share (EPS) of $17.43 [2] - For FY26, revenue is expected to reach $15.6 billion, with FCF of $5.4 billion and EPS of $20.64 [2] - The valuation indicates that NOW shares are trading at 12.5x NTM EV/S and 35x NTM EV/FCF, with the price target derived from a 42.5x EV/FCF multiple [2] Company Overview - ServiceNow, Inc. is a technology company that provides a cloud-based software platform designed to automate business workflows within enterprises [2]