- ServiceNow agentic AI annual contract value crossed $1 billion in Q2 2026, growing more than 40% quarter over quarter, and subscription revenue rose 24.5% year over year to $3.877 billion.
- Cantor Fitzgerald raised its ServiceNow price target to $174 from $141, and Needham lifted its target to $155 from $115, citing AI governance as a growing new sales category.
- Deutsche Bank raised its ServiceNow price target to $155 from $135 and kept a buy rating, implying roughly 10.16% upside from the cited price. The consensus rating stands at Moderate Buy with an average target of $147.
- ServiceNow shares gained 2% to about $140 while the Nasdaq fell 0.88%, as ten-year Treasury yields approached 5%.
- Q3 2026 subscription revenue guidance is $3.975 billion to $3.980 billion, up 20.5% year over year, and Q2 produced 123 new deals with more than $1 million in annual contract value, up about 40% year over year.
- Insiders sold nearly $1.94 million of ServiceNow stock over the prior 90 days, including a 7,847-share sale by Jacqueline P. Canney at an average price of $138.00.
Quotes
“ServiceNow (NOW) stock climbed 2% on Wednesday even as the Nasdaq fell, buoyed by Cantor Fitzgerald raising its price target to $174 after the company's agentic AI contracts topped $1 billion.”
“ServiceNow's $1 billion in committed AI contracts gives it a more defensible position than peers still promising future AI payoffs, and its raised full-year guidance of $15.76 billion in subscription revenue shows AI spending is translating into real, recurring revenue.”
“Deutsche Bank Aktiengesellschaft's price objective points to a potential upside of 10.16% from the company's current price.”