ServiceNow Got Hammered by Wall Street After Earnings. Is the Selloff a Gift for Patient Buyers?

Shares of ServiceNow (NYSE:NOW) banal were hammered aft the company's latest net print, with astatine slightest 7 Wall Street firms trimming terms targets overnight. Most kept Buy ratings intact, framing the post-earnings selloff arsenic an overreaction to impermanent geopolitical woody slippage alternatively than a interruption successful the underlying maturation story.

ServiceNow banal traded adjacent $84.84, disconnected 18% connected the league and down 45% twelvemonth to date. For semipermanent investors, the question is whether this reset is capitulation oregon a uncommon introduction constituent into a high-quality compounder.

Canaccord called the absorption "a punitive absorption to a 4th that seemed fine" and attributed softness to a 75 bps subscription gross resistance from ample on-premise deals successful the Middle East slipping owed to ongoing conflict. The steadfast described ServiceNow arsenic "ridiculously cheap", citing a "durable 20% maturation concern compounding astatine 35% escaped currency travel margins."

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Piper Sandler emphasized ServiceNow's continued AI traction, noting the Now Assist ACV people was raised to $1.5 billion. KeyBanc was the outlier, sticking with an Underweight standing and cutting its people to the existent stock price.

ServiceNow reported subscription gross up 22% twelvemonth implicit twelvemonth to $3.67 cardinal and full gross of $3.77 cardinal (+19% YoY). Management precocious closed the Moveworks and $7.75 cardinal Armis acquisitions, extending the level into AI agents and operational-technology security.