subscriptionRevenue News & Analysis
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Market Mood
ServiceNow (NOW) AI Business Surpasses $1 Billion in 2023
ServiceNow (NYSE:NOW) achieved over $1 billion in annual contract value (ACV) for its AI products during the second quarter of 2023, a segment expected to grow. The company anticipates total subscription revenue of nearly $16 billion this year. ServiceNow also raised its subscription revenue guidance to between $15.76 billion and $15.78 billion. This growth reflects a 24.5% increase in subscription revenue year over year and a nearly 40% rise in high-value deals signed, which may be attractive for investors looking for strong growth in the AI sector.
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ServiceNow (NOW) Price Target Set at $85 by KeyBanc
KeyBanc has reiterated an Underweight rating on ServiceNow (NOW) and set a price target of $85 following its Financial Analyst Day, during which CEO Bill McDermott announced a goal of $30 billion in subscription revenue by 2030. This target represents a 17.5% compound annual growth rate from 2027 to 2030. Additionally, ServiceNow aims to maintain a rule of 60 or higher by 2030. Currently, 90% of analysts rate ServiceNow as a Buy, with an average price target of $140, indicating a potential 52.16% upside from the current price of $92.01.
Read More: ServiceNow (NOW) Price Target Set at $85 by KeyBanc