Wednesday evening, ServiceNow dropped its Q2 numbers and cleared the bar on every metric that mattered.

Revenue landed at $3.98 $3.99 billion, up 24% from a year ago, against Wall Street's $3.93 billion estimate. Adjusted EPS came in at $0.90, ahead of the $0.85 $0.86 consensus.

The stock jumped roughly 5.5% in pre-market trading Thursday, touching around $100.67, then settled to a more modest 2% gain through the regular session.

CEO Bill McDermott called the quarter exceptional, saying the results "solidify our position as the fastest-growing major enterprise software and cybersecurity company."

That framing matters given the backdrop. Going into the report, NOW stock was down nearly 38% on the year, pressured by fears over slowing enterprise software budgets and broader AI disruption across the sector.

The AI piece got its own headline moment. Management raised the company's 2026 AI annual contract value target by 50%, to $1.5 billion, citing stronger-than-expected customer adoption.

J.P. Morgan's Mark Murphy kept his Overweight rating but trimmed his price target from $195 to $145. Even after that cut, the target implies roughly 49% upside from current levels. Murphy flagged an "odd lull" in organic constant-currency cRPO growth as something cautious investors will keep watching until growth returns to prior levels.

He also noted that the guidance raise was modest enough to leave some questions open about whether stronger AI momentum is fully reflected. Murphy expects management to address this at the upcoming Financial Analyst Day.

For Q3, ServiceNow guided for subscription revenue of $3.975 $3.98 billion, representing about 20.5% year-over-year growth, with cRPO growth of roughly 19.5%.

Jefferies analyst Samad Samana held his Buy rating and lifted his price target from $135 to $140. Evercore ISI's Kirk Materne kept an Outperform and raised his target from $150 to $160.

Across the Street, ServiceNow carries a Strong Buy consensus from 26 analysts, with 2 Holds and 1 Sell. The average price target sits at $140.65, implying around 44% upside over the next 12 months.

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