ServiceNow Inc. (NYSE: NOW) could see revenue growth accelerate into fiscal 2027 as its core business stabilizes and AI, security and usage-based products become larger contributors.

BNP Paribas analyst Stefan Slowinski raised his price forecast on ServiceNow by 14% to $160 from a prior level implied by the increase, representing 14% upside from the Oct. 8 price of $139.80. He maintains an Outperform rating.

ServiceNow Subscription Growth Could Accelerate

Slowinski said ServiceNow's current remaining contract value and subscription revenue growth have stabilized, with potential for faster growth ahead.

The company's raised fiscal 2026 guidance implies organic subscription growth of about 19% through year-end. BNP Paribas also estimates underlying current remaining performance obligation growth at roughly 19%.

Slowinski expects softer U.S. federal comparisons in the third and fourth quarters, improving federal demand and rising AI revenue to support growth.

He estimates AI revenue could represent about 9% of group annual recurring revenue by year-end.

For fiscal 2027, BNP Paribas models subscription revenue growth 120 basis points above consensus and expects about 90 basis points of acceleration through the year.

Security Emerges As A Bigger Growth Driver

Slowinski also sees cybersecurity becoming a more important part of ServiceNow's business.

He estimates the company's Security and Risk operations could generate about $1.5 billion in annual contract value, equal to roughly 10% of group ACV, while growing 30%-40%.

He expects the broader security business to become an organic growth driver by mid-fiscal 2027, with Armis contributing organically starting in the second quarter of 2027.

CEO Bill McDermott has said Risk and Security could become ServiceNow's largest business by the early 2030s, surpassing Technology Workflows.

Slowinski estimates the security business could account for about 10% of revenue in 2027.

Valuation Supports Higher Forecast

BNP Paribas values ServiceNow using a 75/25 weighting between fiscal 2028 enterprise value-to-sales of 8 times and enterprise value-to-EBITA of 21 times, discounted back to the present.

Slowinski said the ex-security business trades at about 5.8 times enterprise value-to-sales.

He now views ServiceNow as one of BNP Paribas' top sector picks, citing improving growth prospects, AI monetization, security expansion and continued margin improvement.

ServiceNow Price Action

NOW Price Action: ServiceNow shares were up 1.72% at $142.74 at the time of publication on Tuesday, according to market data.