Overview
- Stifel lowered its price target to $135 and kept a Buy rating, citing softer U.S. federal demand and typical first‑quarter slowdown, with shares trading near $104 and close to a 52‑week low.
- Wells Fargo trimmed its target to $185 and stayed Overweight, and Benchmark began coverage at Buy with a $125 target, leaving most Wall Street recommendations positive despite the selloff.
- Fourth‑quarter results beat expectations with $3.568 billion in revenue and a 31% non‑GAAP operating margin, and the company reported $12.85 billion in current remaining performance obligations, a backlog measure up 25% year over year.
- AI monetization is accelerating as Now Assist more than doubled net new annual contract value and logged 244 transactions over $1 million in the quarter.
- Strategic moves include an expanded NVIDIA tie‑up that links ServiceNow’s AI Control Tower with NVIDIA’s Enterprise AI Factory and a wider Carahsoft reseller push to more than 10,000 partners, with the next earnings report later in April seen as a key check‑in.