ServiceNow (NYSE:NOW | NOW Price Prediction) is drawing fresh scrutiny from Wall Street as two analyst firms trimmed their price targets on the same day, even while maintaining positive ratings. Citi analyst Tyler Radke lowered his price target on ServiceNow stock to $177 from $237, while keeping a Buy rating on the shares. The cut is steep, but the bull case hasn’t been abandoned.
Separately, Mizuho also lowered its price target on ServiceNow to $150 from $190, while maintaining an Outperform rating. Two firms trimming targets on the same name in the same session tends to get investors’ attention even when underlying ratings stay positive.
For long-term investors, the key question is whether the fundamentals still support owning NOW stock through the current turbulence.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| NOW | ServiceNow | Citi | Price Target Cut | Buy | Buy | $237 | $177 |
| NOW | ServiceNow | Mizuho | Price Target Cut | Outperform | Outperform | $190 | $150 |
The Analyst’s Case
Citi’s Q1 partner fieldwork indicated ServiceNow came in slightly ahead of plan, with some deal delays and federal softness noted as headwinds. The firm expects the company to report a slight beat when Q1 results arrive, which softens the blow of the target reduction considerably.
Mizuho’s channel checks were solid overall, with cloud and consumption data points described as “generally good” and AI adoption remaining “very strong.” Cybersecurity demand was mixed, though Mizuho named ServiceNow as one of its favorite stocks to own heading into Q1 reports, alongside Cloudflare (NYSE:NET) stock and Atlassian (NASDAQ:TEAM) shares. You can read more about Mizuho’s broader software sector coverage from April 14.
Company Snapshot
ServiceNow is an enterprise cloud platform company specializing in AI-powered workflow automation. CEO Bill McDermott has positioned the company around what he calls a “Rule of 55+” profile, combining revenue growth and free cash flow margin.
ServiceNow generated $13.3 billion in FY2025 revenue, growing 21% year over year, with free cash flow of $4.6 billion growing 34% year over year. Its Now Assist AI suite saw net new ACV more than double year over year in Q4 2025, and the company ended the year with 603 customers carrying more than $5 million in ACV.
Why the Move Matters Now
NOW stock has declined 39% year to date, falling from $153.19 to $93. Against that backdrop, the broader analyst consensus target sits at $182.29, with 43 Buy ratings and just 1 Sell among 47 analysts covering the stock.
ServiceNow’s forward price-to-earnings ratio stands at 21x, a meaningful compression from where the stock traded a year ago. Federal spending softness and macro uncertainty appear to be driving near-term caution even among bulls.
What It Means for Your Portfolio
Both Citi and Mizuho are trimming targets, not abandoning the thesis. Retirement-focused investors evaluating whether to add, hold, or step aside should note that both firms kept positive ratings. ServiceNow’s FY2026 guidance calls for subscription revenue of $15.53 to $15.57 billion, with a non-GAAP operating margin of 32% and free cash flow margin of 36%. The underlying business trajectory remains intact.
Deal delays and federal softness are real headwinds worth monitoring. Watch for whether ServiceNow’s Q1 results confirm Citi’s expectation of a slight beat, and whether AI deal momentum holds up amid broader enterprise spending caution.
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