JPMorgan Raises ServiceNow (NOW) Price Target on AI-Driven Outperformance

Core Insights - ServiceNow, Inc. has been recognized as a significant player in the AI sector, with JPMorgan reiterating its "Overweight" rating and increasing the price target to $1,075 from $1,020 following strong earnings results [1][3] Financial Performance - The company reported Q3 earnings per share (EPS) of $4.82, exceeding the consensus estimate of $4.27, and revenue of $3.41 billion, surpassing the consensus estimate of $3.35 billion [2] - ServiceNow has raised its full-year guidance for subscription revenue, now expecting it to be between $12.84 billion and $12.85 billion [3] AI Business Growth - The annual contract value for ServiceNow's AI business is projected to exceed $500 million this year and reach $1 billion by 2026, indicating strong growth potential in this segment [3] - The company is positioned as a leader in cloud-based IT workflow management and is in the early stages of expanding its offerings across Employee, Customer, and Creator Workflows [3][4] Market Position - ServiceNow is noted for its ability to create significant value in enterprises through its AI capabilities, emphasizing that it has real customers and is delivering tangible outcomes [4]