Could ServiceNow Be Headed to $1,300? Or is That a Pipe-Dream?

Maybe that $1,300 Street-high price target isn’t so far-fetched for shares of ServiceNow (NASDAQ:NOW | NOW Price Prediction), after all. Not after the AI-driven tech company pulled the curtain on some phenomenal quarterly earnings results.

Combined with the big beats delivered by the Magnificent Seven stocks thus far, I do think the AI trade is not only alive and well as we head into August, but ready to take things into overdrive. Indeed, if 2025 (and 2026) is the year of AI agents, then ServiceNow is a SaaS (Software-as-a-Service) company that’s worth watching very closely as it looks to advance some very exciting new products in the next year.

With another robust quarter in the record books and ample catalysts ahead, I’m inclined to be a buyer while it’s still down close to 15% from its all-time highs.

ServiceNow has all the right growth drivers in place to power a breakout to $1,300

The Street-high target on shares of NOW belongs to an analyst at Citizens JMP’s Patrick Walravens. A move to $1,300 would imply an impressive 33% worth of upside from Wednesday’s close. And while the AI platform and its potential to grow further in agentic AI are already part of the thesis, I do think that some may still be underestimating the growth behind Now Assist and the AI Control Tower, two intriguing innovations that could really fuel serious monetization in the back half of the year. 

Undoubtedly, as ServiceNow unleashes agents in the enterprise, it’s incredibly important to ensure there’s the right governance in place. The AI Control Tower is the place to go to not only monitor what agents have been doing, but to manage them and ensure they’re staying in line.

What a beat that was for the enterprise AI innovator

With a recent guidance hike for subscription revenue following an impressive top- and bottom-line beat, perhaps it’s time to give the AI software high-flyer a second look. Of course, the stock moved higher following the second-quarter reveal, but I think the magnitude of the upside move could have been much more pronounced.

Heading into the final two quarters of the year, it’ll be interesting to see if ServiceNow is able to further accelerate its AI subscription growth. I think there’s a good chance of this, especially as the AI tailwind starts acting as a rising tide for most names in the enterprise software scene. Of course, shares of NOW don’t look all that cheap at more than 60 times forward price-to-earnings (P/E).

Given the momentum behind the business and the very real agentic AI innovations going on behind the scenes, I still see the seemingly lofty multiple as not quite high enough, especially under the leadership of legendary CEO Bill McDermott.

Of course, it’s tough to gauge when demand for AI will kick things up a notch. In the meantime, I think NOW shareholders have plenty of reason to be patient as we head into a more volatile period for stocks. At the end of the day, ServiceNow has the right AI tools and, combined with its “platform advantage” highlighted by Truist (who has a $1,200 price target on the name) just a few months ago, the company will be ready to feel the full extent of the boom of the AI revolution in due time.

All considered, I think NOW stock is well on its way back to the quadruple-digits. With a rather mixed post-earnings reaction, perhaps there’s an opportunity to start doing some buying as big tech earnings propel the broad tech trade higher by September. Not only is $1,300 per share very much in the cards for NOW stock, but it may soon no longer be the Street-high target as analysts take a while longer to fully digest those incredible Q2 results.