Key Highlights
- Analyst Division: Wall Street is showing a stark split in opinion on ServiceNow (NYSE: NOW) as the company approaches its Q3 2025 earnings release.
- The Bullish Case: TD Cowen maintains a confident “Buy” rating, setting a high price target of $1,200, banking on strong AI adoption and federal contracts.
- The Bearish Case: In contrast, Guggenheim has reiterated a “Sell” rating, signaling caution with a price target of $734.
- Upcoming Catalyst: ServiceNow is scheduled to report its third-quarter financial results on October 29, 2025, a date investors are watching closely.
Analyst Opinions Diverge on ServiceNow Ahead of Q3 Report
Investors in ServiceNow, Inc. (NYSE: NOW) are facing conflicting signals from top Wall Street firms as the cloud software giant prepares to announce its third-quarter earnings on October 29, 2025. The division highlights the uncertainty and high stakes surrounding the company’s performance, particularly in the evolving AI landscape.
The Bullish Outlook: Strong Growth and AI Momentum
Representing the optimistic camp, Derrick Wood from TD Cowen reiterated a “Buy” rating for ServiceNow on October 24. The firm set an ambitious price target of $1,200, citing the company’s robust performance and significant growth potential.
Wood’s confidence is anchored in the belief that ServiceNow’s fiscal third quarter will remain strong. Key drivers include an expected surge in US federal bookings and accelerating adoption of its artificial intelligence platforms. The analyst suggested that strong Q3 results could effectively neutralize market worries about potential uncertainty in government spending. TD Cowen also pointed to ServiceNow’s impressive growth in the enterprise sector, which is being fueled by rising AI demand and an increase in large-scale deals.
The Cautious Stance: A Call for a Sell-Off
On the other side of the spectrum, John Difucci from Guggenheim has maintained a more bearish perspective. On October 22, the analyst reiterated a “Sell” rating on ServiceNow stock, issuing a price target of $734. While this target still represents a potential upside from current trading levels, the “Sell” rating itself sends a strong message of caution to the market, contrasting sharply with the bullish sentiment elsewhere on the Street.
What Does ServiceNow Do?
ServiceNow operates a cloud-based AI platform designed to help businesses streamline and digitize their workflows. The platform is used across various departments, from IT and HR to customer service, enabling companies to enhance efficiency and automate processes.
As the earnings date approaches, the split between analysts underscores a critical moment for ServiceNow. The upcoming report will be pivotal in either confirming the bullish thesis of AI-driven growth or validating the concerns of the bears. Investors are now left to weigh these opposing expert views ahead of the official results.
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