Oppenheimer Cites Healthy Overal Demand, Reiterates “Outperform” Rating On ServiceNow (NOW)

Oppenheimer Cites Healthy Overal Demand, Reiterates “Outperform” Rating On ServiceNow (NOW) Faheem Tahir Mon, June 1, 2026 at 3:48 PM GMT+2 2 min read NOW OPY ServiceNow, Inc. (NYSE: NOW ), with significant hedge fund interest, ranks among the 10 best SaaS stocks to buy according to hedge funds . As of Q1 2026, 108 hedge funds held bullish positions in the stock, representing $5.

45 billion in aggregate value. Oppenheimer Cites Healthy Overal Demand, Reiterates "Outperform" Rating On ServiceNow (NOW) On May 26, 2026, Oppenheimer reiterated an “Outperform” rating and $130 price target on ServiceNow, Inc. (NYSE:NOW) after conducting interviews with 64 customers to assess enterprise IT budget trends, AI adoption, and growth plans.

The firm said overall demand and new software spending within the installed base appear healthy despite pressure on headcount growth. AI, IT, Risk, and Security solutions were cited as top investment priorities among surveyed customers. Oppenheimer said the findings raise conviction for a stronger second half of 2026 and potential reacceleration in 2027.

The firm also noted some customers expressed concern that AI agents replacing entry-level support roles could erode the talent pool needed for higher-tier positions. That update followed a coverage reinstatement from BofA on May 18, 2026. The firm restarted coverage with a “Buy” rating and a $130 price target, arguing that ServiceNow, Inc.

(NYSE:NOW) stands to benefit from, rather than be displaced by, new AI solutions. BofA said the company’s depth and breadth of workflow entrenchment across IT, employee, and customer workflows uniquely position it to capture upside from autonomous agent deployments. ServiceNow, Inc.

(NYSE:NOW) provides an AI-enabled enterprise platform for workflows across IT, security, risk, HR, finance, legal, procurement, customer service, and related business functions. While we acknowledge the potential of NOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock .

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