ServiceNow (NOW) shares opened in the green on Thursday before dipping lower after the software giant posted better-than-expected Q2 earnings and raised its guidance for the full year. Management now sees subscription revenue coming in at $15.755 billion at least, reinforcing that it remains strongly positioned for the artificial intelligence (AI) era.
ServiceNow stock has come under immense pressure due to AI disruption fears in 2026, currently trading about 37% below the price at which it started this year.
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www.barchart.comWhat Drove Strength in ServiceNow’s Fiscal Q2?
ServiceNow’s impressive Q2 performance was powered by accelerating enterprise AI adoption.
Artificial intelligence-related annual contract value exceeded $1 billion in the firm’s second quarter (ahead of schedule), underscoring strong demand for its AI Control Tower and automated agentic solutions.
For investors, the quarterly release is nothing short of a reminder that ServiceNow Inc is effectively monetizing enterprise artificial intelligence rather than falling victim to sector-wide disruption.
The company ended Q2 with $13.2 billion in remaining performance obligations (RPOs), up 12% on a year-over-year basis, which makes NOW stock even more attractive to own at current levels.
How High Could NOW Shares Fly in 2026?
ServiceNow’s solid Q2 print made Cantor Fitzgerald analysts led by Thomas Blakey reiterate their “Overweight” rating on the company today.
In its research note, the firm maintained its bullish $141 price objective as well, signaling potential for another 50% upside over the next 12 months.
Blakey pointed to a 50bps beat in net new annual contract value, thanks to rising momentum in its AI, cyber, risk, and governance offerings, for his positive stance.
Crucially, recent risk and security acquisitions, including Armis, are outperforming plans, creating a compelling risk-reward profile for ServiceNow shares, he concluded.
Note that NOW has a history of gaining more than 3% on average in August, a seasonal trend that further improves its near-term appeal.
What’s the Consensus Rating on ServiceNow?
Interestingly, Cantor Fitzgerald isn’t the only Wall Street firm recommending buying NOW shares at the current price.
The consensus rating on ServiceNow currently sits at “Strong Buy,” with price targets as high as $236 indicating potential upside of more than 150% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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