UBS analyst Karl Keirstead downgraded ServiceNow (NYSE: NOW) from Buy to Neutral with a price target of $100.00 (from $170.00).

The analyst comments: "To date, our view has been that ServiceNow is better-positioned for this AI era relative to other application software firms and hence it has been our only Buy-rated application software stock as we’ve been quite cautious on the broader group. Given that our confidence in that view has weakened and we’re hearing more anecdotes of non-AI apps software budget pressure, we’re moving to a Neutral rating despite the material YTD de-rating in the stock to 15x 2026 FCF. We now also expect skinnier-than-normal beats in the coming quarters, more limited upside to the guidance for stable organic c/c sub revs growth of 19% in 2026 and we’re trimming our cRPO growth estimates to exit 2026 at 16% c/c, down from our previous estimate of 20%."

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Shares of ServiceNow closed at $89.81 yesterday.