10:08 AM EDT, 09/24/2025 (MT Newswires) -- ServiceNow ( NOW ) is "well-positioned" to sustain a 20% subscription increase and drive more than 20% free cash flow growth through fiscal 2027, analysts at Morgan Stanley said in a note Wednesday.

ServiceNow's ( NOW ) overall business fundamentals have remained sound despite a volatile backdrop, delivering subscription revenue growth of about 20%, an operating margin percentage of between high-20s to low-30s, and "solid" free cash flow growth, analysts said.

"ServiceNow's ( NOW ) execution has remained encouraging and while GenAI and federal-related uncertainties are understandable, we view both as overblown and believe the company is well-positioned to execute upon a robust agentic AI opportunity and a more reasonable 2026 setup," analysts said.

Analysts upgrade the stock to overweight and raise its price target to $1,250 from $1,040.

Shares of the company were up over 2% in recent Wednesday trading.

Price: 952.59, Change: +24.92, Percent Change: +2.69