Why Stifel Turned More Cautious on ServiceNow (NOW) Despite Keeping a Buy Rating

As of the April 2, 2026 close, ServiceNow shares were down 30.8% twelvemonth to date, finishing astatine $102.00 versus $147.45 connected January 2, 2026.

Stifel turned much cautious connected April 2, adjacent portion keeping its bullish stance. Analyst Brad Reback maintained a Buy standing but chopped his terms people to $135 from $180. The steadfast said its system-integrator checks had “once again down-ticked modestly” from the anterior quarter. Reback added that respective checks pointed to a seasonal rebuilding of pipelines aft an assertive year-end push, portion besides describing the U.S. national spending situation arsenic “very weak.” Stifel’s wide work connected first-quarter transmission checks was “somewhat lackluster.”

That softer near-term commentary stands successful opposition to ServiceNow’s latest reported results. On January 28, the institution said fourth-quarter 2025 subscription gross roseate 21% twelvemonth implicit twelvemonth to $3.466 billion, full gross accrued 20.5% to $3.568 billion, and existent remaining show obligations climbed 25% to $12.85 billion.

ServiceNow, Inc. (NYSE:NOW) provides cloud-based bundle that helps enterprises automate workflows crossed IT, lawsuit service, HR, security, and different concern functions.

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