EL7.AI
Stocks•20 July 2026•
2 min read

ServiceNow Q2 Outlook Bullish as Analysts Set $170 Price Target Ahead of Earnings

Key Facts

1D.A. Davidson analyst Gil Luria set an optimistic price target of $170 for ServiceNow, suggesting a 64.66% upside.
2The company is projected to report Q2 2026 revenue of $3.92 billion, a 22% year-over-year increase.
3EPS is expected to grow 4.88% to $0.86, driven by AI adoption and recurring revenue growth.

Amid the global race to integrate artificial intelligence into enterprise workflows, ServiceNow is heading into its Q2 earnings with significant analyst backing. According to reports, D.A. Davidson analyst Gil Luria has set an optimistic price target of $170, suggesting a potential upside of 64.66%. The company is projected to report revenue of $3.92 billion, a 22% year-over-year increase, while earnings per share (EPS) are expected to grow by 4.88% to $0.86, driven by AI-driven digital automation and recurring revenue streams.

This optimism persists despite broader software sector volatility, as investors compare ServiceNow's trajectory to its major industry peers. Per market data, Microsoft (MSFT) closed at $394.42 on July 20, 2026, and Oracle (ORCL) closed at $126.41 on July 17, 2026. ServiceNow's competitive edge is further highlighted by its robust $12.85 billion in remaining performance obligations (RPO), a key metric that signals long-term contract stability compared to other cloud enterprise providers.

Traders should watch current price levels closely, as NOW closed at $104.01 (as of July 16, 2026), indicating a substantial distance from recent analyst targets. With the earnings release scheduled for July 22, the focus will remain on management's guidance regarding generative AI monetization. Additionally, market participants should monitor upcoming macroeconomic catalysts, including Fed official speeches, which may influence the broader risk appetite for high-growth enterprise software stocks.