ServiceNow, IncNYSE: NOW
Information Technology · Systems Software
$91.35
+3.44%
Vol: 20.5M
Research Digest
Friday, May 1, 2026
ServiceNow Q1 beats revenue with 22% subscription growth; stock down 40% YTD on large deal delays.
ServiceNow Q1 2026 revenue $3.77B vs $3.75B consensus, EPS at $0.97. Reported 22% subscription revenue growth and continues aggressive acquisition with $7.75B Armis cybersecurity deal. Investors focused on negatives: delays in large deals (Middle East) and rising AI investment costs. Stock carries Strong Buy consensus with 32 Buys vs 1 Sell, average 12-month PT $138.06 (~56% upside).
Previous Market Intelligence
13 daysApr 30ServiceNow stock tumbled 17.7% after Q1 earnings revealed margin drag from $7.75B Armis acquisition and Middle East deal delays.Mixed▶
ServiceNow reported strong Q1 2026 results with $3.671 billion subscription revenue (up 22% YoY) and record backlog of $8B, but the stock plummeted on margin pressure from the $7.75B Armis cybersecurity acquisition and Middle East deal delays. The company closed the acquisition with $4B borrowed financing and repurchased 20M+ shares at record pace. Now Assist AI product reached $1.5B annual contract value run rate. Stock is down approximately 40% year-to-date, with analysts maintaining mixed sentiment despite solid fundamentals and 21.8% average YoY growth.
Apr 16ServiceNow plunges 46% YTD on AI seat compression fears; mixed analyst sentimentNegative▶
ServiceNow down 46% YTD on concerns about AI-driven seat compression reducing per-user licensing revenue. UBS downgraded to Neutral from Buy on Apr 16, cutting PT from $170 to $100, citing Fortune 500 budget shifts toward AI infrastructure. Bernstein reiterated Outperform, defending foundational AI platform thesis. Stock at $93.57 (up 5.78% on Apr 15 on risk-on sentiment). Q1 earnings Apr 22. Analysts forecast EPS $0.97, revenue $3.75B.
Apr 15ServiceNow rallies on Bernstein Outperform, but faces 22.48% monthly decline after UBS downgrade to Neutral citing AI threat.Negative▶
ServiceNow shares jumped 6.2% on April 13 after Bernstein reiterated Outperform. However, the stock faces significant headwinds, declining 22.48% over the past month and 39.9% YTD to $88.13. UBS downgraded on April 10 from Buy to Neutral with $100 price target, warning that AI poses a bigger threat than initially believed. Q1 2026 earnings scheduled for April 22. Consensus remains Buy with $187.06 target.
Apr 14ServiceNow downgraded by UBS to Neutral on AI disruption risks, but stock rebounds on AI-enabled product announcements.Mixed▶
UBS downgraded ServiceNow to Neutral from Buy on April 9-10, citing AI as a bigger threat than previously believed. However, the stock surged 8.07% as investors bought the dip. Now Assist annual contract value exceeded $600 million. Q1 earnings due April 22. Analyst consensus remains Buy with price target of $187.06.
Apr 13ServiceNow downgraded by UBS on April 10 amid AI competitive threats; Q1 2026 earnings set for April 22.Negative▶
UBS cut its ServiceNow price target to $100 and downgraded the stock, raising concerns about competitive pressure from AI tools and potential revenue pressure from automation. The stock dropped 9.4% following the downgrade. Q4 2025 EPS of $0.92 beat estimates by 27.78%, but analyst concerns about AI-driven disruption have tempered sentiment. Q1 2026 results expected April 22.
Apr 10ServiceNow reports Q1 earnings forecast and announces AI-enabled product portfolio but stock declines on automation fears.Negative▶
ServiceNow announced Q1 2026 earnings release for April 22 after market close with Q1 EPS projected at $0.95 and revenue guidance of $3.75 billion. Company announced entire product portfolio will be AI-enabled and entered multi-year partnership with DXC Technology for agentic AI deployment. However, stock fell 7.56% as sector sold off on AI automation impact concerns. BTIG lowered price target to $185 from $200 maintaining Buy.
Apr 9ServiceNow partners with Anthropic to integrate Claude AI models; board appoints Zoom founder Eric Yuan.Mixed▶
ServiceNow deepened its enterprise AI positioning by announcing a collaboration with Anthropic to integrate Claude models into the Now Platform, powering Build Agent and agentic workflows. Zoom founder Eric Yuan joined ServiceNow's board, signaling strategic focus on AI and collaboration. The company faces headwinds with a 30.5% YTD decline and a new 52-week low of $97.99, though Now Assist ACV stands at $600M with path to $1B by 2026. Citizens maintained a Market Outperform rating with $260 price target. Upcoming Q1 2026 earnings on April 22 are expected to show 21.39% revenue growth and $0.95 EPS (+17.28%), but recent guidance cuts have raised execution concerns.
Apr 8Goldman Sachs lowers ServiceNow price target to $188; mixed sentiment amid AI execution concernsMixed▶
Goldman Sachs lowered its price target for ServiceNow from $216 to $188 on April 2026, though the firm maintained a Buy rating. Stifel also reduced its price target to $135 from $180, citing seasonally slow Q1 combined with weaker federal government spending. ServiceNow stock has declined 30.5% YTD and faces concerns over revenue growth and AI execution risks. Morgan Stanley analyst Keith Weiss maintains a Buy rating with a $210 price target. ServiceNow will announce Q1 2026 financial results on April 22, 2026, with analysts forecasting $0.54 EPS, a 17.4% increase YoY. The company is expanding AI capabilities through partnerships with Carahsoft.
Apr 7ServiceNow expands partnerships with Carahsoft and Cohesity; stock rises on AI platform momentumPositive▶
ServiceNow expanded its partnership with Carahsoft on March 16 to make its AI platform available across Carahsoft's reseller ecosystem in US and Canada. The company announced a strategic partnership with Cohesity for autonomous AI agent resilience. ServiceNow unveiled EmployeeWorks and Autonomous Workforce solutions for public sector agencies. The stock trades at $102 with a market cap of $106.63B, having fallen from a 52-week high of $211.48. Morgan Stanley maintains a Buy rating with a $210 price target. Analyst consensus shows a Strong Buy rating with an average 12-month price target of $230.84, implying 125% upside.
Apr 6ServiceNow maintains Strong Buy consensus despite 16% YTD decline amid AI competition concernsMixed▶
ServiceNow stock trading at $102.00 with market cap of $106.63B, near bottom of 52-week range. Despite recent stock declines and AI competition fears, 32 analysts maintain Strong Buy rating with $230.84 average 12-month target (126.31% upside). Q1 2026 earnings expected with $0.54 EPS forecast, up 17.4% YoY. 2025 revenue up 20.88% to $13.28B with earnings up 22.67% to $1.75B. Company enhancing AI capabilities and partnerships.
Apr 3ServiceNow scheduled to report Q1 2026 earnings on April 22 with revenue projected at $3.75B; expanded Carahsoft partnership and new AI solutions.Positive▶
ServiceNow (NOW) announced April 1, 2026 that Q1 2026 earnings will release on April 22 after market close. Analysts project revenue at $3.75B (+21.4% YoY) and EPS of $0.95. ServiceNow expanded partnership with Carahsoft to extend AI Platform access to U.S. and Canadian reseller channels. Launched EmployeeWorks and Autonomous Workforce solutions. Announced $3B unsecured revolving credit facility. Collaborated with Anthropic to integrate Claude models into ServiceNow AI Platform.
Apr 2ServiceNow plunges 10% on April 2 amid software sector volatility; Q1 2026 earnings scheduled for April 22.Mixed▶
ServiceNow experienced volatile trading, surging 5.5% on April 1 then plunging 10.4% on April 2, 2026, reflecting broader enterprise software sector turbulence. The company expanded its partnership with NVIDIA at GTC 2026 for AI Control Tower and Enterprise AI Factory integration. Now Assist AI revenue crossed $600M ACV, on track for $1B run rate by end of 2026. ServiceNow raised subscription revenue guidance for 2026 to $15.530-$15.570B (19.5%-20% growth). The stock is down 32% year-to-date. Q1 2026 earnings release is set for April 22. Analyst consensus is Strong Buy with a $232.29 price target (123% upside).
Apr 1ServiceNow partnerships with Fiserv and Anthropic expand AI platform reach; acquisition spree continues with Armis and Veza deals.Positive▶
ServiceNow announced expanded partnerships with Fiserv to scale Now Assist across Financial Services Operations and IT Service Management. The company also revealed collaboration with Anthropic to integrate Claude models into the ServiceNow AI Platform, powering agentic workflows. ServiceNow completed acquisition of Moveworks for AI capabilities and announced Armis and Veza acquisitions for security expansion. BNP Paribas upgrade drove 5.6% stock jump.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| MSFTMICROSOFT | $414.02 | +1.53% | +9.4% | 21.2x | 1.11 | $3.03T |
| PANWPALO | $181.42 | +1.17% | +10.7% | 45.2x | 0.77 | $145.4B |
| CRWDCROWDSTRIKE | $455.81 | +2.26% | +11.8% | 72.2x | 1.07 | $113.0B |
| NOWSERVICENOW | $91.35 | +3.44% | -13.8% | 17.6x | 1.00 | $91.1B |
| FTNTFORTINET | $86.32 | +2.38% | +2.5% | 25.5x | 1.00 | $62.4B |
| GENGEN | $19.35 | +0.29% | -0.4% | 6.7x | 1.15 | $11.7B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.