Benchmark analyst Yi Fu Lee has maintained a Buy rating on ServiceNow (NYSE: NOW) and increased the price target to $130 from $125. The adjustment reflects a revised outlook on the company's valuation and market position.

Rating and Target Details

The research note highlights the firm's continued confidence in ServiceNow's performance. The new price target of $130 represents an increase from the previous target of $125.

ServiceNow continues to be a key player in the enterprise software sector, driving the analyst's positive stance.

ServiceNow, Inc. stock fell more than 3% on Thursday, underperforming a broader market rally as investors took profits after a recent rebound and reassessed the stock’s longer-term technical outlook. The decline occurred despite the Nasdaq gaining 2.48% and the S&P 500 advancing 1.22%. The technology sector led gains across major sectors, yet ServiceNow moved sharply lower, indicating stock-specific selling rather than broader market weakness.

Technical Analysis

ServiceNow shares traded at $102.71, leaving the stock about 4% below its 20-day simple moving average of $107.93 and roughly 2.4% below its 100-day average of $106.14. These levels suggest the stock is still struggling to regain intermediate-term momentum. However, the shares remain about 4.2% above the 50-day moving average of $99.44, indicating the latest pullback follows a recent recovery attempt rather than a fresh breakdown.

The relative strength index stood at 49.08, a neutral reading that suggests momentum is neither overbought nor oversold. The longer-term trend remains a concern for bulls, as the 50-day moving average remains below the 200-day moving average, a bearish “death cross” that formed in August 2025. Key resistance sits near $111, while support is around $85.50, just above the stock’s 52-week low area of $81.24.

Strategic Partnership Expansion

Separately, International Business Machines Corp. and ServiceNow expanded their partnership on Thursday to help enterprises modernize legacy systems, improve data readiness, and deploy AI at scale. The collaboration combines IBM’s AI, data, and automation tools with the ServiceNow AI Platform, focusing on application modernization, enterprise data governance, and autonomous IT operations. The companies said the joint solutions will help customers unlock enterprise data, automate workflows, and support agentic AI adoption. The offerings are expected to be available in the second half of 2026.

Earnings and Analyst Outlook

The company’s next earnings report is expected on July 22, 2026. Analysts expect earnings of 76 cents per share, compared with 82 cents a year earlier. Revenue is projected to rise to $3.93 billion from $3.21 billion in the prior-year period. ServiceNow trades at about 63.1 times earnings, reflecting a premium valuation relative to many software peers.

Wall Street maintains a Buy consensus rating on the stock, with an average price forecast of $139 based on 50 analyst ratings. Recent analyst actions include: