RBC Capital Raises ServiceNow (NOW) PT to $1,200 on Strong Q1, ‘Conservative' Outlook
In Q1 2025, ServiceNow reported its biggest-ever first-quarter for net new Annual Contract Value/ACV. The number of Pro Plus deals more than quadrupled year-over-year, and 72 deals were greater than $1 million in net new ACV, which was a rise from 63 a year ago. Additionally, the number of customers generating over $5 million in ACV reached 508.
A close-up of a computer engineer working on the code for a cloud connectivity platform.
The company generated a subscription revenue of $3.005 billion, which was a 20% year-over-year increase. The company still raised its full-year 2025 subscription revenue guidance to a range of $12.64 billion to $12.68 billion, representing 18.5-19% year-over-year growth. For Q2 alone, subscription revenue guidance was set between $3.030 and $3.035 billion, which is a 19-19.5% growth.
ServiceNow Inc. (NYSE:NOW) provides a cloud-based solution for digital workflows in North America, Europe, the Middle East and Africa, Asia Pacific, and internationally.
While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the .
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Disclosure: None. This article is originally published at Insider Monkey.
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