ServiceNow's AI Revenue Target Hits $1.5B as Large Investor Builds Stake
Published on 07/04/2026 at 22:02 | Redaktion boerse-global.de
The narrative surrounding ServiceNow has shifted dramatically. Once viewed as a potential casualty of the artificial intelligence revolution, the enterprise software company is now positioning itself as its central nervous system. A fresh wave of big-money buying ahead of second-quarter results suggests the market is beginning to believe in that vision.
On July 3, Leonteq Securities added just over 134,000 ServiceNow shares worth roughly $14.1 million. The purchase comes as the company’s internal AI tool, Now Assist, is exceeding all prior forecasts. Management has raised its 2026 target for contracted AI-related revenue from $1 billion to $1.5 billion — a clear signal that the technology is gaining traction with corporate clients.
That confidence extends to the broader alliance strategy. Late last month, ServiceNow announced partnerships with Google and HCLTech aimed at embedding advanced AI agents directly into enterprise workflows. The announcement sent shares up five percent in pre-market trading. The company wants to become the single control tower for AI-driven business processes, automating operations across entire organizations.
The strategy is already visible in the financials. In fiscal 2025, ServiceNow generated $13.28 billion in revenue and net income of $1.75 billion. More telling for the near term is the contracted remaining performance obligation (cRPO), which stood at $12.64 billion at the end of the first quarter after growing 22.5%. This metric gives a clear view of short-term demand and will be a key focus when the company reports second-quarter earnings on July 22 after the U.S. market close.
Should investors sell immediately? Or is it worth buying ServiceNow?
Investor sentiment, however, remains jittery. ServiceNow shares closed at €92.30 on Friday. The stock managed a 6.24% gain on the week but still sits roughly nine percent lower than 30 days ago. The annualized volatility of nearly 82% underscores the extreme sensitivity surrounding high-multiple technology stocks in the current environment. The Relative Strength Index at 55 points to a neutral reading, suggesting no clear directional bias.
Analysts are largely undeterred by the short-term price swings. Among 42 analysts covering ServiceNow, the average price target stands at $141.68. Evercore ISI recently reaffirmed an "Outperform" rating with a $150 target. Benchmark kept its buy recommendation at $130, while Guggenheim upgraded the stock to "Buy" with a $125 target.
The upcoming Q2 print will be the first real test of whether the AI narrative is translating into measurable results. Investors will scrutinize not just top-line revenue but also the cRPO figure to gauge whether large deals are accelerating. If the momentum in contract backlog holds, it could cement ServiceNow's transformation from an AI question mark into a clear beneficiary of the technology.
ServiceNow at a turning point? This analysis reveals what investors need to know now.
For now, the pieces are in place: a raised revenue target, institutional accumulation, analyst endorsements, and a product that appears to be outrunning expectations. The next few weeks will determine whether the stock price catches up.
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