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Bank of America Raises ServiceNow Price Target

Analyst Tal Liani cites growing demand for AI business automation as a driver for the company's valuation.

Updated on Oct. 23, 2026 in Artificial Intelligence

Isometric editorial illustration of a modern steel server cabinet, representing the data infrastructure behind corporate AI automation.
Bank of America increased its price target for ServiceNow to $180, citing strong enterprise demand for AI-driven business automation. AI Illustration. Upload story photo >

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Bank of America raised its price forecast for ServiceNow shares to $180, reflecting increased expectations for the firm's AI-powered automation tools. This move follows a series of upward adjustments from other major financial firms ahead of the company's quarterly results.

Why it matters

Analysts believe that ServiceNow's established enterprise data infrastructure positions it to capture significant spending as businesses pivot toward AI agents. Surging demand for workflow automation is now a central priority for chief information officers across the country.

Bank of America raised its valuation multiple to 27 times estimated 2027 enterprise value to free cash flow, up from the previous 23 times. ServiceNow currently carries a price-to-earnings ratio of 98.1.

The players

Bank of America

This global financial services company provides comprehensive banking, investing, and asset management services.

ServiceNow

The company provides a cloud-based platform that helps enterprises automate and manage IT workflows and digital operations.

Tal Liani

He serves as a financial analyst at Bank of America specializing in the technology sector.

The details

ServiceNow leverages its existing platform to deploy AI agents, an application that 54.5% of surveyed CIOs indicated they are likely to adopt. The company's focus on IT service and operations management aligns with the priorities of 42% of CIOs who rank these tools as top spending needs.

Timeline

  1. October 19, 2026: StoneX raised its ServiceNow price forecast to $165.

  2. October 21, 2026: Truist Securities raised its ServiceNow price forecast to $180.

  3. October 23, 2026: Bank of America and Guggenheim raised price forecasts for the company.

  4. October 28, 2026: ServiceNow is scheduled to report its third-quarter financial results.

The Tech Race

Bank of America's valuation adjustment follows the success of ServiceNow's enterprise workflow platform in scaling AI agent deployments. This trend underscores a broader transition where legacy management software is being rapidly augmented by AI to maintain enterprise relevance.

Enterprise customers may see increased integration of AI-powered features within their existing IT service management tools as companies prioritize these deployments. These technical updates are designed to streamline back-office workflows and improve operational efficiency for organizations.

The takeaway

Investors and IT leaders are closely watching ServiceNow's ability to turn rising software spending into actual revenue growth. Stakeholders should monitor the upcoming earnings report to see if these high market expectations are validated by concrete performance metrics.

What happens next

ServiceNow is scheduled to release its third-quarter financial results on October 28, 2026.

Further reading

For broader analysis on current industry trends, visit the Artificial Intelligence section.

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Are you planning to increase your investments in technology companies focusing on artificial intelligence?