Analysts Lower ServiceNow Targets, Keep Positive Ratings Before AI-Focused Q1

Overview

• Oppenheimer cut its price target to $130 and kept an Outperform rating due to lower software valuation multiples.
• The firm expects strong AI usage metrics and higher margins from internal AI efficiencies and slower hiring, though it says the Q1 update may not settle disruption worries.
• Truist lowered its target to $125 and maintained a Buy rating based on customer checks that position ServiceNow as a key partner in enterprise AI plans.
• ServiceNow says its full portfolio is now AI‑enabled, including a Context Engine that surfaces relationships and decision history and new Build Agent tools for in‑platform development.
• Investors will watch the April 22 earnings for signs that AI adoption is driving paid subscription growth, backlog gauges such as current remaining performance obligations, margins, and capital returns.