ServiceNow (NOW) is experiencing strong growth with high demand for its AI and CRM solutions, leading to an expanding customer base and larger contract values. Despite stock underperformance, analysts see a buying opportunity due to overlooked long-term prospects and strong financial performance, including a 98% renewal rate and $24 billion in total remaining performance obligations.

Demand for ServiceNow’s AI platform is increasing, reflecting enterprise adoption trends, with AI efficiencies driving margin expansion. In Q2 2025, subscription revenue rose 21.5% to $3.113 billion, and total remaining performance obligations grew 25.5% to nearly $24 billion, with cRPO reaching $10.92 billion.

The company’s AI-driven offerings are excelling, with products like IT Asset Management Now Assist seeing significant growth. ServiceNow’s CRM business is gaining traction, with the Logik.ai acquisition proving beneficial. The launch of new AI infrastructure and offerings position the company for future growth and operational efficiency.

ServiceNow is well-positioned for $15 billion-plus subscription revenue in 2026, with strong demand for new AI offerings. Analysts maintain a “Strong Buy” rating, anticipating a potential rally as AI tailwinds drive growth and operational efficiency. Price targets suggest significant upside potential for the stock in the coming months.

Read more at Yahoo Finance: Is ServiceNow Stock Headed for a Significant Rally? What Investors Should Know.