Despite The Downturn, ServiceNow (NOW) Is Still One Of The Best Cloud Computing Companies To Buy

ServiceNow Inc. (NYSE:NOW) is one of the 8 Best Cloud Computing Stocks To Buy In 2026. On April 19, J.P. Morgan analyst Mark Murphy maintained a Buy rating on ServiceNow Inc. (NYSE:NOW) and set a target price of $195. The firm’s price target implies an additional 116% upside from here. On a more bearish note, TD Cowen lowered its price target to $140 from $185 while maintaining a Buy rating. The firm’s channel checks show growing trends, increased use of AI products, large deal activity, and extended platform reach. The stark difference in price targets suggests how uncertain the environment is for software stocks at the moment.

Despite the uncertainty, there was one positive on the acquisition front. The company completed the acquisition of Armis on April 20, briefly causing the stock price to go up. Armis supplies cyber exposure management and security solutions. ServiceNow’s market opportunity for security and risk solutions is expected to increase 3x after the acquisition. The settlement was made for $7.75B in cash back in December 2025. This builds on the company’s March purchase of Veza, an AI identity security platform, for approximately $1 billion. Amit Zavery, who is president, chief operating officer, and chief product officer at ServiceNow, remarked:

"Armis gives us real-time, contextual awareness into the cyber risk of every connected asset, including the devices and systems that conventional tools were never built to see. Combined with Veza’s identity intelligence, that signal flows into ServiceNow’s Context Engine and AI Control Tower, turning exposure into automated remediation with governance and a full audit trail built in at every step."

ServiceNow Inc. (NYSE:NOW) provides cloud-based and AI-embedded end-to-end workflow automation solutions for enterprises. The company is located in Santa Clara, California, and was founded in June 2004 by Frederic B. Luddy.

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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