ServiceNow (NOW) PT Lowered to $1,050 at Goldman Sachs

Goldman Sachs analyst Kash Rangan lowered the price target on ServiceNow (NYSE: NOW) to $1,050.00 (from $1,200.00) while maintaining a Buy rating.

The analyst comments "ServiceNow reports F1Q25 results on 4/23. We reiterate our Buy rating and lower our PT to $1,050 ($1,200 prior). ServiceNow has been one of the weaker performers in our coverage group YTD (-22% vs. coverage average -14%) as investors grapple with sub-20% FY25 guidance, the potential rationalization of PubSec IT spending, and knock-on effects from tariff policy volatility. Looking to F1Q, we believe ServiceNow can deliver +20.2% CC Subscription Revenue growth (modestly above guidance for +19.5% to +20%) and CC cRPO growth in-line with guidance (+20.5%). While F1Q guidance likely contemplated ongoing PubSec dynamics and closed before any tariff-related announcements, we acknowledge there may be some risk to F2Q and FY25 guidance. We see the potential for ServiceNow to modestly reduce growth expectations in response to predominantly tariff but also PubSec-related demand volatility (though the 90-day tariff pause adds further complexity). However, with NOW -29% off all-time highs (and at 33x EV/FCF CY26), we believe the stock provides an attractive entry point, notwithstanding the turbulent macro period. ServiceNow is the standard for selling on customer value, amplified by its expanding AI portfolio (AI ACV >$200M) and recent Moveworks acquisition, which has consistently supported growing share of IT budgets. Furthermore, ServiceNow offers a strong and expanding FCFM profile (>30%) and maintains a solid balance sheet, meeting the key characteristics of a defensive software asset while still providing a bend toward high-growth at scale."

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