Bank of America reiterated its Buy rating and $130 price target on ServiceNow (NOW) after the software company reported stronger-than-expected second-quarter contract growth.
The target represents about a 36% upside from the $95.46 share price listed in BofA’s July 23 report
According to the report, ServiceNow’s subscription revenue rose 24.5% to $3.88 billion, and current remaining performance obligations (contracted revenue expected within the next 12 months) increased 21% to $13.2 billion. Both measures exceeded Wall Street expectations. BofA highlighted a less obvious point in the report: ServiceNow’s AI agents may benefit from the workflow history and infrastructure records already stored on its platform.
Analyst Tal Liani said ServiceNow can draw on that context when an agent encounters an enterprise problem that does not have a simple, documented solution. Because ServiceNow already stores those records, its agents could handle difficult cases with fewer data-integration steps than an outside AI product, according to the report. BofA says enterprise context can help ServiceNow handle harder cases A basic service-desk agent can reset a password, classify a support ticket, or approve software access by following a documented process.