ServiceNow (NOW) PT Lowered to $175 at Wells Fargo

Wells Fargo analyst Michael Turrin lowered the price target on ServiceNow (NYSE: NOW) to $175.00 (from $190.00) while maintaining a Overweight rating.

The analyst comments "Mgmt emphasizing diverging trends between cRPO & subs revs, adding more layers of adjustments: Mgmt highlighted increasing T4C headwinds that have added onto the model from 1) acquired companies with different contractual provisions (highlighting strength of bookings from those companies), 2) Fed customers who intend to go direct. Contracts w/ T4C unable to be incl in cRPO. AI professional services carveouts may also not be incl in cRPO. Cyber becoming a bigger platform wedge for NOW: Security + Risk showed broad momentum in 3Q, landing in 16 of the top 20 deals with 13 deals >$1M, while Security/ Risk AI NNACV grew >4.5x y/y. Management is positioning Superintelligence Control Tower + SecOps as a unified governance/security layer for enterprise AI, pairing discovery/ visibility with remediation while Veza & Armis extend into identity and OT/device security. Control Tower Action Fabric activity/consumption grew ~500% m/m. Model Updates: FY26E revs unchanged at $16.2B, but FCF to $5.8B from $5.7B, EPS to $3.90 from $3.96. FY27E revs unchanged at $19.2B, FCF to $7.1B from $6.9B, EPS to $4.64 from $4.76."

You May Also Be Interested In

• ServiceNow (NOW) PT Lowered to $160 at TD Cowen
• Generac Holdings (GNRC) PT Raised to $235 at Citi
• Waste Management (WM) PT Lowered to $251 at Raymond James