ServiceNow Inc (NOW) Sees Subscription Sales Accelerating in 2026

ServiceNow Inc (NYSE:NOW) is among the champion S&P 500 stocks with highest upside potential. On February 10, Oppenheimer named ServiceNow Inc (NYSE:NOW) among its apical US bundle stocks to watch. While acknowledging that the bundle manufacture has lagged down different IT segments successful monetizing AI, Oppenheimer believes companies similar ServiceNow person imaginable to regain momentum. It sees this momentum coming from areas similar improved execution and strategical initiatives.

On February 5, Truist chopped its terms people connected ServiceNow to $175 from $240 but kept a Buy rating. The steadfast said the assemblage pullback is mostly astir long‑term worth concerns, not near‑term fundamentals, making AI adoption much important.

Truist noted that companies relying connected seat‑based models person been the weakest performers since 2025. It sees AI usage cases and a displacement distant from seat‑based deployments arsenic cardinal strategies for bundle vendors going forward.

On January 28, ServiceNow released its Q4 2025 results that showed some gross and net surpassed Wall Street expectations. Revenue jumped 20.5% YoY to $3.57 billion, beating the statement estimation of $3.53 billion. The EPS of $0.92 topped $0.88 expected. The 4th was buoyed by beardown maturation successful the subscription business, which accounts for the bulk of the company’s revenue, with income successful this conception rising 21% YoY to $3.47 billion.

ServiceNow expects maturation successful its subscription concern to accelerate successful Q1 2026. It guided subscription income for the 4th successful the scope of $3.65 cardinal to $3.66 billion, suggesting a maturation of 21.5% YoY astatine the midpoint. ServiceNow expects its acquisition of Moveworks to boost subscription gross by 100 ground points successful Q1 arsenic good arsenic full-year 2026.

Headquartered successful Santa Clara, California, ServiceNow Inc (NYSE:NOW) offers enterprises the level they request to streamline their workflow. It provides a cloud-based computing level enhanced with AI that enables businesses to make and negociate automated processes much effectively.

While we admit the imaginable of NOW arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.