May 2 - Truist Financial upgraded ServiceNow ( NYSE:NOW ) to " Buy " from Hold following the software firm's stronger-than-expected first-quarter results.

Top-ranked analyst Joel Fishbein raised his price target to $1,200 from $950, suggesting upside of over 25%. He described the enterprise workflow platform as a rare compounder with durable growth potential across core and emerging verticals, including customer relationship management and agentic AI.

ServiceNow shares jumped more than 15% on April 24 after reporting an 18.5% year-over-year increase in revenue and better-than-expected adjusted earnings per share. The company also issued a bullish outlook for the second quarter, despite macroeconomic uncertainty.

Fishbein said ServiceNow is well-positioned to consolidate the enterprise IT stack and benefit from demand for pre-built AI tools, citing strong industry feedback. He also praised the firm's go-to-market execution as the gold standard among peers.

Despite the recent rally, the stock is still down about 10% in 2025. The analyst views the pullback as a buying opportunity.

Is ServiceNow Stock a Buy?

Based on the one year price targets offered by 40 analysts, the average target price for ServiceNow Inc is $1048.24 with a high estimate of $1300.00 and a low estimate of $724.00. The average target implies a upside of +9.43% from the current price of $957.95.

Based on GuruFocus estimates, the estimated GF Value for ServiceNow Inc in one year is $1053.85, suggesting a upside of +10.01% from the current price of $957.95.

This article first appeared on GuruFocus .