Overview
- UBS downgraded ServiceNow to Neutral and lowered its price target to $100 from $170, citing weaker demand signals for non‑AI software and less room for earnings beats.
- The bank also cut its forecast for remaining performance obligation growth to 16% from 20%, a watchlist metric because it reflects future contracted revenue.
- Shares tumbled to a new 52‑week low of $81.24 and closed the week at $83, extending a multi‑month slide as investors reassessed the company’s near‑term upside.
- ServiceNow points to strong recent results, including Q4 subscription revenue of $3.47 billion, current RPO of $12.85 billion, and a $5 billion buyback authorization.
- The company has made AI standard across its products and introduced a Context Engine that links live enterprise data, policies, and workflows, while analysts remain split with several target cuts and at least one Outperform rating still in place.