12:26 PM EDT, 10/30/2025 (MT Newswires) -- ServiceNow ( NOW ) has shown strong execution in tough environments with its Q3 performance, Morgan Stanley said in a report Thursday.

"We believe the company is well positioned to emerge as the AI workflow winner," the report said.

The note pointed to its ability to deliver a 25%-30% price uplift on its AI subscriptions and faster-than expected uptake on its AI portfolio with customers likely to exceed capacity by mid 2026.

The report said its current remaining performance obligation grew 20.5% year-over-year in constant currency, about 250 basis points ahead of guidance and consensus, making Q3 the largest beat of the year.

Morgan Stanley raised its price target on the stock to $1,315 from $1,250 and kept its overweight rating.

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