Why Does ServiceNow (NOW) Remain Among the Strong-Positioned Software Names According to Barclays?

With one-year EPS and gross maturation estimates of 19.81% and 18.47%, respectively, ServiceNow, Inc. (NYSE:NOW) earns a spot connected our database of the best maturation stocks to bargain and clasp successful 2026. The banal has 70% upside imaginable arsenic of April 23, 2026.

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Barclays expert Raimo Lenschow came backmost to ServiceNow, Inc. (NYSE:NOW) connected April 23, 2026, reinstating sum with an “Overweight” standing and a terms people of $132. His work connected the first-quarter results was measured: the broader macroeconomic situation had an impact, but thing that changes the cardinal story.

Lenschow highlighted that ServiceNow, Inc. (NYSE:NOW) remains among the strongest-positioned bundle names, owing to its heavy integration wrong customers’ IT environments, a structural vantage the steadfast believes volition presumption the institution arsenic an integral subordinate successful endeavor AI adoption.

That appraisal is reinforced by the company’s first-quarter fiscal results, announced a time earlier.

ServiceNow, Inc. (NYSE:NOW) reported subscription gross of $3.671 billion, up 22% year-over-year, with full gross of $3.770 billion, reflecting equivalent growth. Demand indicators remained robust: existent remaining show obligations roseate 22.5% to $12.64 billion, portion full remaining show obligations expanded 25% to $27.7 billion. Now Assist customers with yearly declaration values exceeding $1 cardinal grew much than 130% year-over-year, underscoring durable commercialized momentum successful the company’s AI merchandise portfolio.

Still, the 4th was not without headwinds.

Non-GAAP EPS came successful astatine $0.97 per share, with subscription gross maturation facing a 75-basis-point resistance from delayed ample woody closings successful the Middle East.

ServiceNow, Inc. (NYSE:NOW) besides shared its expectations for the remainder of the year.

For the 2nd 4th of 2026, it sees subscription gross coming successful betwixt $3.815 cardinal and $3.820 cardinal and expects to support 26.5 cents of operating nett for each dollar earned. For the afloat year, ServiceNow, Inc. (NYSE:NOW) accrued its gross forecast to betwixt $15.735 cardinal and $15.775 billion, with operating profitability of 31.5% and escaped currency travel borderline of 35%.

ServiceNow, Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The institution is located successful Santa Clara, California, and was founded successful June 2004 by Frederic B. Luddy.

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