Goldman Sachs Upgrades ServiceNow as AI Revenue Surpasses $1 Billion
ServiceNow's second-quarter results exceeded expectations across revenue, earnings, and bookings amid concerns about the impact of AI on enterprise software. The company’s shares initially dipped but recovered after hours following the report. Goldman Sachs raised its price target for ServiceNow to $152 from $145 while maintaining a 'buy' rating. Goldman highlighted that ServiceNow's ability to prove relevance in the broader enterprise AI stack is more critical than continued quarterly beats. The firm noted significant progress, including an AI annual contract value (ACV) crossing $1 billion for the first time and accelerating adoption of its AI capabilities across customer bases.
Topics: AI impact on SaaS Goldman Sachs ServiceNow stock price target update