ServiceNow (NOW) Stock Gets Bullish Upgrade From BNP Paribas After 23% YTD Selloff

TLDR

• On March 16, 2026, BNP Paribas lifted ServiceNow (NOW) from Neutral to Outperform rating.
• NOW shares have declined 23% since the start of the year, presenting what BNP views as an attractive buying opportunity.
• Stefan Slowinski, BNP analyst, increased the price target from $120 to $140.
• The firm anticipates ServiceNow will achieve approximately 20% subscriber organic revenue growth by fiscal 2026 close.
• The rating increase highlights AI revenue generation capabilities and robust margin profile as primary catalysts.

Investment firm BNP Paribas expressed renewed optimism for ServiceNow (NOW) this Monday, elevating the enterprise software company to an Outperform rating while boosting its price objective to $140 from the previous $120.

ServiceNow, Inc., NOW

Stefan Slowinski, an analyst at BNP, initiated the upgrade, arguing that the recent market weakness has opened up a compelling opportunity for new investors. Shares of NOW have tumbled 23% since the beginning of the year prior to this rating change.

The analyst outlined three critical criteria he evaluates in software companies: a stable core operation, viable artificial intelligence revenue pathways, and high-quality margins paired with controlled stock-based compensation. According to Slowinski, ServiceNow satisfies each requirement.

BNP Paribas now forecasts that the company will conclude fiscal 2026 posting subscriber organic revenue expansion of approximately 20%. This projection exceeds the roughly 18% figure that management provided during the first quarter outlook.

Slowinski identified additional growth catalysts if enterprise clients accelerate their transitions from Standard and Pro subscription levels to the premium Pro Plus tier. He also noted possible momentum from customers returning following their Assist Pack acquisitions.

AI Monetization in Focus

The upgrade places significant emphasis on ServiceNow’s capacity to convert its artificial intelligence investments into tangible revenue streams. BNP’s assessment indicates the market may be overlooking this opportunity, particularly given the stock’s challenging year-to-date performance.

Pro Plus, representing the company’s premium subscription offering, plays a central role in this investment thesis. Should enterprise adoption accelerate, Slowinski contends it could drive growth beyond current management forecasts.

ServiceNow’s gross profit margin stands at 77.53%, while the operating margin registers at 13.74%. The company has demonstrated revenue expansion at a three-year compound annual growth rate of 21.2%, providing fundamental support for the upgraded outlook beyond market sentiment.

Balance Sheet Holds Up

The enterprise software provider maintains a debt-to-equity ratio of 0.19, coupled with an interest coverage ratio of 79.3 — metrics that signal a robust balance sheet with minimal financial leverage concerns.

With an Altman Z-Score reaching 6.54, ServiceNow falls well within the financially secure zone. Recent insider transactions over the past quarter have shown mixed signals, with one documented purchase.

NOW currently carries a market capitalization of approximately $120 billion. BNP Paribas’s upgraded $140 price objective indicates meaningful appreciation potential from present levels after the year-to-date downturn.

This rating change marks BNP’s most recent action on the stock, with the revised $140 target officially established as of March 16, 2026.

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