ServiceNow is heavily investing in AI adoption, causing rising delivery and partner costs that reduce gross margins from 86% in 2022 to an expected 81% in 2026. Although subscription revenue grows steadily at 21%, the increasing expenses pressure profitability. Management remains optimistic about AI-driven revenue growth, but unclear revenue attribution and ongoing cost increases limit near-term upside. The current stock price around $106 appears overvalued against risks, with a price target of $87 and a sell rating advised.
As of Nov 04, 2026 21:21 WIB, ServiceNow shares are trading at USD 112.00 on Pluang, up 2.60% for the day with a market cap of $113.30 billion. Despite the article's note of a $106 stock price and a sell rating, Pluang investors show a 72% buy order activity, indicating stronger demand. The typical hold time on Pluang is 56 days, reflecting moderate-term investor interest.
ServiceNow maintains a Strong Buy rating due to strong AI-driven growth and increased Annual Contract Value (ACV) targets, with AI net new ACV growing 65% year-over-year and a raised 2026 AI ACV target of $1.7 billion. Although Q4 current Remaining P...
Technology stocks fell sharply, with the NASDAQ dropping nearly 3%, driven by worries over accelerating negative free cash flow at major AI-focused companies like Alphabet and Amazon. Despite some firms like ServiceNow and Intel beating expectations,...
