Analyst War on ServiceNow (NOW): Sell or Buy Before Q3?

• Wall Street analysts are sharply divided on ServiceNow's (NOW) future as its Q3 2025 earnings report looms.
• TD Cowen is championing a 'Buy' rating with an ambitious $1,200 price target, banking on strong AI adoption and federal contracts.
• In a stunning counter-opinion, Guggenheim has reiterated a 'Sell' rating, creating significant uncertainty for investors.
• The conflicting forecasts place immense pressure on the company's October 29 earnings release to signal a clear direction.

Wall Street Divided on ServiceNow's Future

Investors in ServiceNow, Inc. (NYSE:NOW) are facing a confusing landscape as top Wall Street firms issue starkly conflicting advice ahead of the company's third-quarter earnings release on October 29, 2025. The cloud software giant is at the center of a tug-of-war between bullish optimism and bearish caution, leaving many to wonder which direction the stock is truly headed.

The Bullish Outlook: A $1,200 Price Target

Representing the optimistic camp, Derrick Wood from TD Cowen on October 24 reiterated a strong 'Buy' rating for ServiceNow, setting a formidable price target of $1,200. The firm's confidence is built on the company's robust performance and significant growth potential.

Wood highlights the anticipated strength in the fiscal third quarter, which he believes will be fueled by major US federal bookings and accelerating AI adoption. According to the analyst, strong Q3 results are expected to calm market fears surrounding government spending uncertainty. TD Cowen also noted that ServiceNow has demonstrated powerful growth within its enterprise segment, driven by soaring AI demand and an increase in large-scale deals.

The Bearish Warning: A 'Sell' Rating Emerges

On the other side of the debate, John Difucci from Guggenheim issued a contrasting opinion just days earlier on October 22. The firm reiterated a 'Sell' rating on ServiceNow stock, establishing a price target of $734. This bearish stance introduces a significant element of risk for potential investors, directly challenging the growth narrative proposed by bulls. While the provided analysis doesn't detail the reasoning for the 'Sell' rating, its presence alone is enough to cause concern among shareholders.

What Does ServiceNow Do?

ServiceNow provides a sophisticated cloud-based artificial intelligence platform designed to help businesses automate and digitize complex workflows across various departments, from IT to human resources. Its integral role in modernizing enterprise operations is a key factor for both bullish and bearish analysts.

A High-Stakes Earnings Call

With such a deep divide among financial experts, the upcoming Q3 earnings report is more critical than ever. Investors will be scrutinizing the results for any indication of which forecast is more accurate. The company's performance and forward-looking guidance will likely be the deciding factor that breaks the current analytical stalemate.