Overview
- Guggenheim analyst John DiFucci upgraded ServiceNow to Buy with a $125 target, and the stock rose about 4% on Wednesday after the change.
- ServiceNow told investors it expects Q2 cRPO growth of roughly 19.5% on a constant-currency basis, a figure that includes revenue from the recent Moveworks and Armis acquisitions.
- Evercore and several other brokers kept constructive ratings and higher price targets, with Evercore’s $150 target noting organic cRPO growth is nearer the low-to-mid 17% range once acquisitions are stripped out.
- At its Financial Analyst Day ServiceNow outlined an ‘AI Control Tower’ strategy and AI-native packaging and set a goal to exceed $30 billion in subscription revenue by fiscal 2030.
- Analysts warn that the firm’s near-term outlook depends on execution: investors will watch the upcoming Q2 print for signs that organic growth is stabilizing and that AI products can be monetized without heavy reliance on more acquisitions.