Overview
- Wolfe Research lowered its ServiceNow target to $125 from $175 and kept an Outperform rating, citing delayed on‑premise deals in the Middle East.
- ServiceNow said it beat the high end of its first‑quarter revenue and profit guidance, increased free cash flow, and returned capital to shareholders.
- Booked future revenue rose, with remaining performance obligations for the next 12 months at $12.6 billion, up 21% year over year, and total RPO at $27.7 billion, up more than 23%; RPO reflects contracted revenue not yet recognized.
- The company closed its Armis acquisition early to bolster cybersecurity, planning to pair Armis’s real‑time asset discovery and exposure management with ServiceNow’s AI Control Tower and automated workflows.
- Shares trade more than 50% below their July peak as investors worry AI agents could cut paid seats or shorten contracts, a concern Jim Cramer spotlighted while looking to an upcoming analyst meeting.