Daniel PronkANALYSTJul 24, 2026“ServiceNow's re-accelerating revenue growth, AI tailwinds, high customer retention, and low 22x free cash flow valuation imply 200% upside over the next 5 years.”
Why he says it — point by point
FAVORABLE & AGAINST · BOTH KEPTWhy
On a year-over-year basis, ServiceNow subscription revenue has re-accelerated slightly.
AI is actually acting as an accelerant and tailwind for the business.
Trading around the lowest price to free cash flow that the business has ever traded for, around 22 times trailing 12-month free cash flow.
The company now has a seven-year track record of beating guidance.
Cybersecurity business is now doing over $1 billion in revenue and it is growing faster than every single one of their peers.
The actual profit margins for ServiceNow seem like they are intact and are largely fine.
A future stock price of 295 bucks, which would be a 200% return over the next 5 years.
The structured call
The receipt
Publish-day price $$98.78 · the claim is anchored to the moment it was said.