ServiceNow ACV Tops $600M with $13B Backlog, Buy Rating Maintained
ServiceNow shares are down 43% over the past year and 27% year-to-date despite Now Assist ACV soaring past $600 million and Pro Plus modules driving healthy growth, prompting Needham to maintain a Buy rating with a $155 price target. Wedbush added ServiceNow to its IVES AI 30 list and the company reports a $13 billion contract backlog that, coupled with AI integration accelerating enterprise agreements over 20% growth, could fuel a powerful stock rebound in 2026.
1. Shares Performance and Analyst Ratings
ServiceNow shares have fallen 43% over the past year and 27% year-to-date amid broader software sector weakness. Needham upheld its Buy rating with a $155 price target, and Jim Cramer reiterated the company’s status as a leading enterprise workflow provider.
2. Now Assist and Pro Plus Growth
Pro Plus modules have shown consistent revenue expansion, while Now Assist annual contract value surpassed $600 million, reflecting strong adoption of AI-driven workflow solutions across large enterprises.
3. AI Integration and Enterprise Contracts
ServiceNow’s placement on the IVES AI 30 list highlights market confidence in its AI roadmap. The seat-based subscription model, bolstered by AI enhancements, is expected to support higher renewal rates and upsell opportunities.
4. Backlog and Market Outlook
A $13 billion contract backlog offers substantial revenue visibility for the next several quarters. Sustained growth above 20% combined with disciplined execution could unlock significant upside in 2026.