Here’s Why ServiceNow (NOW) Was Among Piper Sandler’s Top Picks For 2026

Core Viewpoint - ServiceNow, Inc. is recognized as one of the software stocks with significant upside potential, being among the top picks for 2026 according to Piper Sandler [1] Group 1: Valuation and Market Position - The decline in ServiceNow's valuation is attributed to investor concerns regarding sustainable growth, influenced by seat-count trends, slower AI rollouts, and structural challenges in key verticals [2] - The company's valuation has dropped to approximately 29x EV / NTM FCF, nearing its lowest valuation in five years, which was around 25x at the end of 2022 [2] - Piper Sandler has revised its price target for ServiceNow shares from $230 to $200, indicating a potential upside of 47.6% from current levels while maintaining a Buy rating [2] Group 2: Business Operations - ServiceNow operates as a provider of cloud-based solutions for digital workflows globally, utilizing its AI platform known as the Now platform [3] - The company serves various sectors including financial services, manufacturing, technology, healthcare & life sciences, public sector, and telecom [3]