NOW Stock Rises Overnight: Management Targets Doubling Software Revenue To $32B By 2030

• ServiceNow expects its core subscription revenue to grow to $30–$32 billion from $15.7 billion this fiscal year.
• NOW would hit the “60% rule” by 2030, a high bar that combines revenue growth and free cash flow margins that total 60%.
• Stocktwits sentiment for NOW, however, declined and was ‘bearish’ heading into Tuesday.

ServiceNow, Inc. shares rose 1.2% in overnight trading ahead of Tuesday, after the software company said it expects subscription revenue to double by 2030, along with other targets outlined at its investor day.

Among the companies pressured by concerns that AI could dent demand for enterprise software, ServiceNow said its core subscription business is expected to reach $30 billion to $32 billion in revenue, up from the $15.7 billion it has projected for this fiscal year. The figure came in higher than Bloomberg's consensus estimate of $26.3 billion.

Higher Pricing, AI Shift To Power Growth

Among other things, the forecast accounts for higher pricing announced last month, which would generate incremental revenue from customers starting this year.

The Santa Clara, California-based firm has rolled out several AI features in recent quarters and has actively tried to shift the narrative, but its shares are down nearly 40% this year, in line with declines seen at peers like Salesforce and Workday.

NOW stock suffered its steepest one-day drop on record last month following the company’s quarterly report, though it has since recovered part of those losses.

Investors sold off after ServiceNow warned that the Middle East conflict weighed on subscription revenue last quarter, which overshadowed an otherwise upbeat report and strong forecasts. Retail investors said at the time they would buy the dip.

ServiceNow offers software that helps companies automate workflows and manage IT, employee, and customer operations more efficiently, and is one of many software firms pitching themselves as AI management dashboards.

“ServiceNow is not a traditional SaaS company. We’re the orchestration layer AI agents run on, not the software they replace,” said CFO Gina Mastantuono as part of her pitch to investors, according to a report in Tom’s Hardware.

She also said ServiceNow would reach a "Rule of 60+" in 2030, a high bar that combines revenue growth and free cash flow margins that total 60%.

Retail View Mixed For NOW

On Stocktwits, retail sentiment has been falling since the start of last week and was ‘bearish’ in the early hours of Tuesday. NOW shares ended higher in the last two sessions.

“$NOW that was the best roadmap and shareholder confidence boost you could probably ever ask for from a board well done let’s see the results in the coming months!” said a trader. 

A trader posted a chart showing a large stock buy before the investor conference began. “Not sure I have ever seen a $69 million order cross. 750K shares,” they said.

To be sure, analysts and market observers, including Michael Burry, have routinely cited NOW as among the picks they are watching for potential rebound. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: 'The Devil Wears Prada 2' Tripled The Original's US Opening Weekend — Disney Stock Didn't Care