Prediction: This AI Stock Could Double in 12 Months
Prediction: This AI Stock Could Double in 12 Months
Vandita JadejaMon, August 17, 2026 at 5:00 PM UTC
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Quick Read -
NOW's AI ACV crossed $1 billion with agentic deployments surging 9x in nine months, powering 24% revenue growth and our $249.84 BUY target.
NOW grows subscriptions at 21%, nearly double CRM's guided rate and well above WDAY, while trading at a forward P/E of just 30.
Bill McDermott called cybersecurity a '10-figure business' growing faster than any top-10 peer, giving NOW a second high-velocity engine beyond AI.
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ServiceNow (NYSE:NOW) has recovered from a brutal drawdown, and the market is still missing the story. Our proprietary model points to meaningful upside, and the setup is one of the most attractive in enterprise software right now.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$124.00
24/7 Wall St. Price Target
$249.84
Upside
101.49%
Recommendation
Confidence Level
90%
Our 24/7 Wall St. price target for ServiceNow is $249.84, implying roughly 101% upside over the next 12 months. Confidence is high at 90%, driven by accelerating AI monetization, a resilient subscription engine, and a valuation reset well below prior peaks. The model rates NOW a buy.
NOW Price Target — 24/7 Wall St.A Painful Reset That Set Up the Opportunity
NOW is down 19.05% year to date and 27.13% over the past year, sitting 28% below its 52-week high of $194.73. Shares are up 18.4% in the past month as fundamentals reasserted themselves.
Q2 FY26, reported July 22, 2026, was the catalyst. Revenue climbed 24% year over year to $3.99 billion, non-GAAP EPS of $0.90 beat estimates by 5.09%, and cRPO reached $13.20 billion. ServiceNow AI crossed $1 billion in ACV, with agentic deployments up 9x in nine months. Management raised full-year subscription revenue guidance to $15.77 billion.
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Why Bulls See a Breakout Ahead
NOW Price Scenario — 24/7 Wall St.
The bull thesis rests on AI monetization arriving faster than the market has priced. CEO Bill McDermott said deals with 5-plus AI products grew 5.5x year over year, and million-dollar AI deals tripled.
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Cybersecurity adds a second engine. McDermott called it a "10-figure cybersecurity business" growing faster than any top-10 peer. Long-term targets of $32 billion in 2030 revenue and Rule of 60 economics support a bull-case target of $273.37.
NOW Analyst Ratings — 24/7 Wall St.The Risks Worth Watching
GAAP metrics are weak. Operating income fell 54.75% and net income 22.6% year over year in Q2 as GAAP subscription gross margin compressed to 73.5% from 80%. This reflects amortization from the Armis and Veza acquisitions closed earlier this year, while free cash flow still grew 20.53%.
Federal budget uncertainty and roughly $35 million in Q3 FX headwinds are manageable. Bear-case downside target: $196.82, well above today's price.
How ServiceNow Compares to Salesforce and Workday
Salesforce (NYSE:CRM) is the closest analog, pushing Agentforce as its agentic AI wedge. CRM trades at a P/E of 22 with FY27 revenue guided up 10% to 11% to a range of $45.9 billion to $46.2 billion. That growth rate is roughly half ServiceNow's guided 21% constant-currency subscription growth, making NOW's premium multiple defensible.
Workday (NASDAQ:WDAY) guides FY27 subscription revenue of $9.93 billion to $9.95 billion at 12% to 13% growth on a P/E near 58. NOW is growing faster than both peers, guiding to higher operating margins at 31.5%, and trades at a forward P/E of 30. That combination makes our 24/7 Wall St. price target reasonable rather than aggressive.
ServiceNow Price Prediction 2026-2030
My 24/7 Wall St. price target of $249.84 reflects a buy with 90% confidence. AI monetization is pulling forward faster than sell-side models anticipated, with the consensus analyst target of $140.25 lagging the underlying story.
The setup favors investors comfortable absorbing GAAP margin noise from acquisition amortization through year-end. The thesis weakens if federal spending stalls materially or if Q3 cRPO growth slips below 19%.
Year
24/7 Wall St. Price Target
2026
$185
2027
$250
2028
$340
2029
$455
2030
$615
These projections assume ServiceNow executes on its $32 billion 2030 revenue target and reaches Rule of 60 economics. Significant upside could come if AI ACV exceeds the 30% of total ACV target ahead of schedule. Downside risk is concentrated in acquisition integration and federal budget cycles.
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Source: “AOL Money”
