ServiceNow Fell 20% Over a Year But This Wall Street Analyst Predicts 70% Gains From Here

Alex Sirois

Tue, October 20, 2026 at 10:45 AM EDT 5 min read

Quick Read

Bernstein’s Peter Weed targets $248 for ServiceNow, implying 70% upside, backed by AI contract value crossing $1B and agentic deployments surging 9x in 9 months.
Salesforce carries an 18% consensus upside while Workday offers just 7%, making ServiceNow’s bull case hinge on Bernstein’s outlier call rather than the Street average.
ServiceNow’s forward P/E of 28 versus a trailing multiple of 89 signals the market expects sharp margin recovery as Moveworks and Armis integration costs fade by FY27.
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ServiceNow (NYSE:NOW) currently trades at $145.33. The average analyst price target is $152.23, which implies 4.7% upside.

A human hand holds a black stylus, tapping on a glowing blue digital tablet screen. The screen displays a financial candlestick chart with teal green and pink bars, indicating market activity. To the right, a powerful, stylized bull, outlined in vibrant teal and magenta light, charges forward from the digital surface. The background is a dark, blurry blue, enhancing the bright digital elements. The overall mood is dynamic and forward-looking. — Shutterstock

ServiceNow sells a cloud platform that automates IT, HR, security and customer workflows, and it now positions itself as the “AI control tower” for large enterprises. Investors are watching because the AI revenue is real: ServiceNow AI crossed $1 billion in annual contract value, and agentic deployments rose 9x in 9 months.

The bigger gap comes from the high end of the Street. Bernstein’s Peter Weed holds an Outperform rating with a $248 target, the highest published. That implies 70.6% upside, a sharp break from where the market prices the stock.

AI Disruption Fears Cut ServiceNow by 58% From Its High

Fear that AI agents would make seat-based software obsolete did most of the damage. Shares fell from a 52-week high of $192.97 to a low of $81.24. That marks a decline of 57.9%. Software stocks entered a bear market in January, and ServiceNow plunged 10% in one session. The sector lost $1 trillion in a week.

ServiceNow added problems of its own. The stock tumbled nearly 15% after management warned that delayed Middle East deals would hit first-quarter subscription growth. Profit also took a hit: second-quarter operating income fell 54.75% to $162M as stock compensation and costs from the Moveworks, Veza and Armis deals piled up. The stock has since climbed 78.9% off its low, yet it is still down 19.58% over the past year.

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