Analyst Raised Microsoft and ServiceNow Price Targets
Higher valuation targets follow reported capacity constraints at Microsoft and agentic AI demand for ServiceNow.
Updated on Sept. 21, 2026 in Software
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Cantor Fitzgerald analyst Thomas Blakey has adjusted price targets upward for Microsoft, now at $608, and ServiceNow, now at $174. This move arrives as Microsoft reports that infrastructure demand continues to outpace its available capacity.
Why it matters
The revisions reflect a divergence between high-growth enterprise infrastructure demand and a broader software sector that has seen a 1.4% decline year-to-date. ServiceNow is benefiting from specific demand for agentic AI modernizations, while Microsoft continues to manage capacity-constrained scaling.
Microsoft raised its target on the back of operational shifts, moving GitHub Cloud and Security into its 365 stack while separating healthcare units from Azure. ServiceNow maintains an organic growth rate between 18% and 20.5%, sustained by enterprise security requirements.
The players
Thomas Blakey
An equity analyst at Cantor Fitzgerald who monitors software sector performance and enterprise valuation.
Microsoft
A global technology company focused on cloud infrastructure, productivity software, and artificial intelligence development.
ServiceNow
A cloud-based platform provider that automates enterprise workflows through agentic AI and security management tools.
The details
Microsoft is managing infrastructure demand through accelerated capacity rollouts and internal architecture optimizations that group security and cloud development services. ServiceNow’s growth is anchored in agentic AI—autonomous software systems capable of executing complex workflows—which necessitates deep integration into existing enterprise platforms to handle data security and operational logic.
Timeline
September 21, 2026: Thomas Blakey published the updated price targets for both Microsoft and ServiceNow.
The Tech Race
The market remains heavily weighted toward the hardware layer, where the PHLX Semiconductor Sector Index has surged 65.7% year-to-date. Software providers like Microsoft and ServiceNow are currently racing to prove that infrastructure-heavy AI investments can translate into comparable organic enterprise growth.
Enterprise customers should anticipate faster rollouts of AI-integrated security and cloud features as these firms optimize their stacks to meet capacity demands. Businesses relying on Azure or ServiceNow platforms may experience shifting service costs as both companies emphasize high-demand AI tools.
The takeaway
Investors and enterprise leaders should monitor whether Microsoft’s efficiency gains allow infrastructure output to finally catch up to market demand. Watch for upcoming quarterly guidance to see if ServiceNow’s organic growth remains in the 18% to 20.5% range as agentic AI deployments scale.
Further reading
For more on the current enterprise market trajectory, see the latest updates on Software.
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