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

• ServiceNow (NOW) shares plunged 18% after earnings on geopolitical deal slippage in the Middle East, though subscription revenue climbed 22% year-over-year to $3.67 billion and the company generated $2 billion in free cash flow.

• Seven Wall Street firms cut price targets on NOW stock while maintaining Buy ratings, with Canaccord calling the stock “ridiculously cheap” and Piper Sandler highlighting AI traction from Now Assist aimed at a $1.5 billion annual contract value target.

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Shares of ServiceNow (NYSE:NOW) stock were hammered after the company’s latest earnings print, with at least seven Wall Street firms trimming price targets overnight. Most kept Buy ratings intact, framing the post-earnings selloff as an overreaction to temporary geopolitical deal slippage rather than a break in the underlying growth story.

ServiceNow stock traded near $84.84, off 18% on the session and down 45% year to date. For long-term investors, the question is whether this reset is capitulation or a rare entry point into a high-quality compounder.

Canaccord called the reaction “a punitive reaction to a quarter that seemed fine” and attributed softness to a 75 bps subscription revenue drag from large on-premise deals in the Middle East slipping due to ongoing conflict. The firm described ServiceNow as “ridiculously cheap”, citing a “durable 20% growth business compounding at 35% free cash flow margins.”

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Piper Sandler emphasized ServiceNow’s continued AI traction, noting the Now Assist ACV target was raised to $1.5 billion. KeyBanc was the outlier, sticking with an Underweight rating and cutting its target to the current share price.

ServiceNow reported subscription revenue up 22% year over year to $3.67 billion and total revenue of $3.77 billion (+19% YoY). Management recently closed the Moveworks and $7.75 billion Armis acquisitions, extending the platform into AI agents and operational-technology security.