Overview
- ServiceNow reported Q4 revenue of $3.57 billion, up 20.66% year over year, with EPS of $0.92, topping consensus on both metrics.
- Management launched a $5 billion repurchase authorization that includes a $2 billion accelerated buyback starting immediately.
- The company issued an initial 2026 organic outlook calling for roughly 18.75% subscription revenue growth at the midpoint, which it said is above consensus.
- Shares fell after the report and are down nearly 24% so far in 2026, with the IGV software ETF in bear-market territory as investors debate AI’s impact on incumbents.
- Analysts largely kept positive ratings but trimmed targets—Bernstein (Buy, $219), RBC (Outperform, cut to $185), and Piper Sandler (Overweight, $200)—while CEO Bill McDermott argued AI needs workflow platforms like ServiceNow.