ServiceNow: Planting AI Seeds NOW

Research evidence excerpt

ServiceNow: Planting AI Seeds NOW

Deutsche Bank

Research

Rating Company Date

Buy ServiceNow 23 July 2026

North America Reuters Bloomberg Rating Buy

United States NOW.N NOW US Price target (USD) 135.00 Price at 22 Jul 26 95.46

52-week range 199.24 – 7.50

TMT

Software Valuation & Risks

Planting AI Seeds NOW

Brad Zelnick

ServiceNow's 2Q was a step in the right direction after a mixed 1Q, as results Research Analyst

+1-212-250-8563 exceeded guidance across all key metrics. Broad strength across Federal,

security, ITOM, and CMDB further supports the company's position as a Bhavin Shah, CFA

consolidation and governance platform, while longer contract durations and Research Analyst

higher active seats help counter common investor concerns. The quarter also +1-212-250-6775

strengthened our confidence in ServiceNow’s cybersecurity opportunity, as AI

Chris Fountain Control Tower’s ability to govern agents and connected assets is pulling through Research Associate

the broader Security and Risk portfolio. Management believes heightened +1-212-250-1575

concerns following the Mythos release are increasing enterprise urgency around

visibility, governance, and automated response. cRPO +21.5% @cc was 200bps Nick Giovacchini

ahead of guidance, and even with roughly half of the upside driven by early Research Associate

+1-212-250-9075

renewals, it was a solid outcome. Although roughly half of the subscription

revenue beat reflected U.S. Federal on-premise revenue pulled forward from 3Q,

management passed through nearly all the underlying NNACV outperformance

in its full-year raise and maintained a prudent second-half outlook, leaving room

for continued execution upside. Finally, we think the quarter provided

encouraging evidence that ServiceNow’s strategic relevance is increasing with