ServiceNow Price Target Cut to $185 by BTIG as FY26 Revenue Growth Guidance Draws Scrutiny

ServiceNow (NYSE:NOW | NOW Price Prediction) stock is drawing fresh analyst scrutiny in early April, with BTIG analyst Allan Verkhovski cutting his price target to $185 from $200 while keeping a Buy rating on the shares. The FY26 subscription revenue growth guidance offers limited upside and appears aggressive, with outperformance more likely to hinge on Now Assist Packs and M&A activity rather than organic momentum. ServiceNow shares have declined 33% year-to-date, trading near $102 currently.

The price target cut arrives as multiple Wall Street firms reassess their outlooks. Goldman Sachs (NYSE:GS) trimmed its target to $188 from $216, and Stifel (NYSE:SF) cut to $135 from $180, citing “somewhat lackluster” Q1 channel checks and a “very weak” U.S. federal spending environment. That said, the consensus analyst target across 43 analysts sits at $185.04, with 43 Buy ratings versus just 3 Holds and 1 Sell.

The Analyst’s Case

BTIG’s core concern isn’t the current business performance but rather what comes next. BTIG believes consensus FY27 and FY28 subscription revenue growth estimates are too high, suggesting the market hasn’t fully priced in a deceleration beyond FY26. Any near-term upside surprise would likely require Now Assist token consumption to accelerate meaningfully or pending acquisitions like Armis and Veza to contribute faster than expected.

The FY26 guidance itself projects subscription revenues between $15.53 billion and $15.57 billion, representing 19.5% to 20% constant currency growth. That’s a solid number, but it includes approximately 100 basis points of contribution from the Moveworks acquisition, which tempers the organic growth picture.

Company Snapshot

ServiceNow is an enterprise cloud platform company focused on digital workflow automation. In Q4 FY2025, it posted revenue of $3.568 billion, up 20.66% year-over-year, with EPS of $0.92 beating estimates of $0.89. Now Assist, its generative AI suite, surpassed $600 million in annual contract value and is tracking toward a $1 billion-plus target for 2026.

CEO Bill McDermott stated on the earnings call: “There is no AI company in the enterprise better positioned for sustainable profitable revenue growth than ServiceNow.” The company also holds over $10 billion in cash and investments and authorized a $5 billion incremental share repurchase program in January.

What It Means for Your Portfolio

If you’re a long-term investor watching ServiceNow stock, the BTIG cut reflects a recalibration of growth expectations rather than a fundamental breakdown. NOW stock’s 33% year-to-date decline has compressed the valuation significantly, with a forward P/E ratio of roughly 24x compared to a trailing P/E ratio of 61x.

You’d want to own ServiceNow stock if you believe Now Assist token consumption accelerates and M&A integration delivers on its promised contribution. If you think consensus growth estimates for FY27 and FY28 are indeed too rich, BTIG’s cautious recalibration deserves weight. No matter how you slice it, the gap between analyst targets and today’s price tells you the Street still sees value here, but the path forward depends on execution.