ServiceNow Posts Q4 Beat, Unveils $5 Billion Buyback as 2026 Outlook Tops Street

Overview

• The company reported Q4 revenue of $3.57 billion up 20.66% year over year and EPS of $0.92, with management saying it exceeded guidance and RBC calling it a clean beat on metrics including roughly 20% organic constant-currency cRPO growth.
• ServiceNow guided to about 18.75% organic subscription revenue growth at the 2026 midpoint, described by analysts as slightly ahead of consensus.
• The board authorized a $5 billion share repurchase program that includes a $2 billion accelerated buyback beginning immediately.
• Sell-side firms largely kept positive ratings while trimming targets, with Bernstein at Buy ($219), RBC at Outperform after cutting to $185, and Piper Sandler at Overweight with a $200 target highlighting AI leadership and CRM share gains.
• Shares moved lower after the report as software valuations reprice on AI concerns, and Cantor Fitzgerald characterized downside risk as limited with a worst-case decline of about 12%.