ServiceNow Gains Analyst Support on AI Traction, Faster Subscription Outlook

Overview

• The company reported Q4 2025 revenue of $3.57 billion, up 20.5% year over year, with EPS of $0.92 beating estimates.
• Management guided Q1 2026 subscription sales to $3.65–$3.66 billion, implying about 21.5% growth, and expects Moveworks to add roughly 100 basis points to subscription revenue in Q1 and for 2026.
• Needham reaffirmed a Buy rating and cited Now Assist adoption, noting annual contract value above $600 million, while Oppenheimer listed ServiceNow among top U.S. software stocks to watch.
• Truist lowered its price target to $175 but kept a Buy rating as investors reassess long-term valuations and seat-based models across software.
• ServiceNow expanded its repurchase authorization by $5 billion and named Danielle Fontaine chief accounting officer and corporate controller effective February 17.