SKN | UBS Raises ServiceNow Price Target to $150 as AI and Security Demand Support Growth

Key Takeaways:

• UBS raised its ServiceNow price target to $150, citing stable third-quarter demand and continued interest in artificial intelligence and security products.
• Existing-customer renewals and expansion remain important growth drivers, with stronger demand for premium product tiers and usage-based pricing.
• UBS remains Neutral despite the higher target, as organic growth is slowing and the investment bank has yet to identify a clear AI-driven acceleration in revenue.

Stable Demand Provides a More Constructive Near-Term Backdrop

UBS has raised its price target for ServiceNow to $150, pointing to more stable third-quarter enterprise software demand and growing customer interest in the company’s artificial intelligence and security offerings. The revised target reflects a more constructive view of the company’s growth prospects even as enterprise applications spending remains challenging.

For investors, the key distinction is between broad-based new spending and expansion within ServiceNow’s existing customer base. UBS sees renewals and additional deployments among established customers continuing to support revenue, while demand for premium tiers and usage-based pricing provides another potential source of monetization.

AI Opportunity Remains Significant but Not Yet Fully Visible

ServiceNow’s AI suite represents an important potential catalyst, particularly as enterprises increasingly seek to integrate AI capabilities into existing workflows and technology environments. Security products add another avenue for expansion as customers consolidate more technology and risk-management functions with established enterprise platforms.

UBS, however, has not yet identified a clear AI-driven uplift in organic growth. That distinction keeps the bank Neutral on the stock despite the higher price target. The opportunity may become more visible across 2026 and 2027 if AI adoption translates into broader product usage, higher-value contracts and incremental spending from existing customers.

Valuation Has Already Reflected Part of the Improvement

ServiceNow shares have gained approximately 47% since the company’s second-quarter results, leaving valuation as an important consideration for investors assessing the remaining upside. UBS estimates the stock is trading at roughly 20 times its 2027 free cash flow estimate.

As of October 7, 2026, ServiceNow shares were reported at $137.31, up 0.90% over the previous day, with a market capitalization of approximately $140.69 billion. Trading volume was reported at roughly 7.1 million shares. The source also indicates that users on Pluang were predominantly positioned to sell, with sell orders representing 88% of order activity.

The combination of a higher price target and a Neutral rating illustrates the balance UBS sees between improving demand signals and valuation. For global investors, the central question is whether AI and security adoption can generate incremental growth substantial enough to offset slowing organic expansion and justify the premium multiple.

Closing Insights

ServiceNow remains positioned at the intersection of enterprise workflow software, AI adoption and cybersecurity spending. The near-term investment case is increasingly dependent on the company’s ability to convert customer renewals and expansion into higher-value deployments while demonstrating that AI products can create measurable incremental growth.

For private investors and wealth managers, the stock therefore represents both a technology-growth opportunity and a valuation-sensitive position. The higher UBS target reflects improving demand conditions, but the Neutral stance underscores that meaningful AI monetization still needs to become visible in reported growth.

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