As the broader software sector grapples with fears of AI-driven disruption, ServiceNow stands out as a study in contrasts. While the SaaS group has lagged behind infrastructure stocks by roughly 40 percentage points since early 2025, this particular equity is drawing intense, albeit conflicted, attention from Wall Street. The stock, trading around $94.20, has shed about 38% of its value year-to-date, yet it managed a 7% rebound in the last five trading sessions.
This volatility has triggered a significant wave of price target reductions from major banks, even as their fundamental buy ratings largely hold firm. In adjustments dated April 15, analysts recalibrated their expectations. Citigroup cut its target from $237 to $177, Oppenheimer lowered its from $175 to $130, and Mizuho reduced its from $190 to $150. BMO and RBC also made substantial downward revisions to $120 and $121, respectively. Despite these cuts, the average analyst price target remains in a band between $174 and $184, suggesting a wide gap between current price and perceived value.
Paradoxically, Mizuho has named ServiceNow a “Top Pick” for the current earnings season, placing it alongside Cloudflare and Atlassian. Analyst Gregg Moskowitz points to robust activity in large enterprise deals, driven by sustained adoption of the AI-powered “Pro Plus” subscription tiers. The firm’s newly introduced agentic AI solutions, sold via specialized “Assist Packs,” are also gaining early traction in sales channels. This operational strength is expected to manifest in the upcoming quarterly report.
Should investors sell immediately? Or is it worth buying ServiceNow?
All eyes are on the company’s current remaining performance obligations (cRPO), a critical indicator of future revenue. Management has guided for currency-adjusted cRPO growth of 20% year-over-year for the quarter. Mizuho believes strong demand data points to potential upside against this forecast. The official figures will be released after the U.S. market closes on Wednesday, April 22, 2026, with a management conference call scheduled for 2:00 p.m. Pacific Time.
The recent financial backdrop provides a solid foundation. In the fourth quarter of 2025, ServiceNow exceeded profit expectations with earnings of $0.92 per share, while revenue climbed nearly 21% year-over-year to $3.57 billion. This performance is attracting institutional investors. Transcend Capital Advisors, for instance, boosted its position by a staggering 456% in the final quarter of 2025, building a holding worth approximately $1.5 million. Over 87% of the company’s shares are held by institutional owners.
The upcoming earnings report is more than a routine update; it represents a key operational milestone following ServiceNow’s strategic shift to embed AI natively across its entire product line, rather than offering it as isolated add-ons. Investors will scrutinize the details on “Pro Plus” user growth and large-deal closures to assess whether the company can continue defying the sector’s downward pressure.
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