BTIG reaffirmed its Buy rating on ServiceNow (ticker: NOW) and kept a $200 price objective following the software company’s strong year-end performance and an upbeat outlook for 2026. ServiceNow shares were trading at $129.62, well below their 52-week peak of $234.08, representing a 43.33% decline over the past year.
ServiceNow reported 20% organic constant currency current remaining performance obligation - cRPO - growth, outpacing its prior guidance of 19%. For 2026 the company provided an organic constant currency subscription revenue growth midpoint of 18.75%, slightly above consensus estimates of 18.45%. These figures sit alongside the company’s recent revenue momentum, with revenue growth of 21.05% over the last twelve months.
On product traction, ServiceNow said its Now Assist annual contract value - excluding Moveworks - has topped $600 million, comfortably ahead of the firm’s $500 million target. During the earnings call, CEO Bill McDermott addressed investor questions around the company’s positioning in artificial intelligence.
BTIG highlighted valuation and margin characteristics in its assessment. When treating stock-based compensation as a cash expense, BTIG shows ServiceNow trading at 29x calendar-year 2027 enterprise-value-to-free-cash-flow (EV/FCF) while generating a 21% margin in 2025, versus a peer-group estimated margin of 3%.
Separately, InvestingPro analysis cited by the company’s disclosures shows gross profit margins of 78.05% and assigns ServiceNow an overall financial health score of GOOD. The stock’s price-to-earnings ratio stands at 78.61.
Management also authorized further capital return to shareholders, announcing an additional $5 billion repurchase authorization. The company said a $2 billion accelerated share repurchase (ASR) program is scheduled to begin on Monday.
Analyst targets and valuations on ServiceNow vary. InvestingPro notes a range of analyst price targets from $120 up to $266.40. BTIG’s Buy rating and $200 target sit within that span.
ServiceNow’s most recent reported quarter - fourth-quarter 2025 - delivered results above Wall Street forecasts. The company posted earnings per share of $0.92, compared with the $0.89 expected by analysts, and reported revenue of $3.57 billion versus consensus of $3.53 billion. For the first quarter of 2026 ServiceNow provided subscription revenue guidance between $3.650 billion and $3.655 billion, above the consensus figure of $3.575 billion.
Several brokerage firms weighed in following the results. Citizens analyst Patrick Walravens reiterated a Market Outperform rating with a $260 price target, citing guidance that exceeded expectations. BMO Capital kept an Outperform rating but trimmed its price target to $170, characterizing the fourth quarter as "solid if unspectacular." Jefferies maintained a Buy rating and $175 target, pointing to robust subscription revenue performance. RBC Capital also stayed at an Outperform rating while reducing its target to $185, calling the quarter a "clean beat."
Investors and market participants will be watching the interplay between the company’s continued top-line momentum, gross margins and its valuation multiples. The combination of buyback activity, above-consensus guidance and continued product traction in Now Assist informed analysts’ and BTIG’s positive posture.
Summary of key metrics cited:
- Share price: $129.62
- 52-week high: $234.08 (43.33% decline over the past year)
- Organic constant currency cRPO growth: 20% (vs. 19% guidance)
- 2026 organic constant currency subscription revenue growth midpoint: 18.75% (consensus 18.45%)
- Revenue growth last twelve months: 21.05%
- Now Assist ACV (ex-Moveworks): > $600 million (target $500 million)
- EV/FCF (CY27, treating SBC as cash): 29x
- Margin (2025): 21% (peer group estimate: 3%)
- Gross profit margin: 78.05%
- P/E ratio: 78.61
- Repurchase authorization: $5 billion; ASR program: $2 billion starting Monday
- Analyst target range cited: $120 to $266.40
The company’s combination of a modestly better-than-expected outlook, product ACV progress and a sizable new repurchase program underpinned BTIG’s decision to maintain its Buy rating and $200 price target.
For readers seeking additional analyst notes and the full set of InvestingPro commentary, the platform lists more detailed research materials and ProTips on the company’s page.