ServiceNow Gets Buy Rating as Cramer Urges Long-Term Hold After Q3 Beat

Overview

• CMB International’s Saiyi He reaffirmed a Buy rating with a $1,180 price target, highlighting 103 $1 million-plus net new ACV deals and 553 customers above $5 million in ACV, up 18% year over year.
• Q3 revenue grew 22% to $3.4 billion, with subscription revenue up 21.5% to $3.2 billion and cRPO rising 21% to $11.35 billion.
• Non-GAAP operating margin reached 33.5%, roughly 300 basis points above guidance, aided by AI-driven operating efficiencies and disciplined spending.
• Management guided Q4 subscription revenue to $3.42–$3.43 billion and projected 23% year-over-year cRPO growth.
• Jim Cramer told long-term investors to hold the stock, praising fundamentals and CEO Bill McDermott, and noting shares were about 24% below their January high at the time of his remarks.