ServiceNow price target raised to $236 from $226 at Bernstein

Bernstein analyst Peter Weed raised the firm’s price target on ServiceNow (NOW) to $236 from $226 and keeps an Outperform rating on the shares. The firm notes ServiceNow’s Analyst Day on one hand added a bullish tailwind, putting out a base long term 2030 guidance they would INCREASE their Rule of 40 to 60-plus, with free cash flow margins implicitly rising 900bps vs. 2025, and SBC percentage of revenue drops to less than 10% by 2029. Unfortunately, “they also fed the bears” which believe any level of deceleration is intolerable, as their 2030 subscription revenue target of $30B suggested growth decelerates towards mid-teens, Bernstein adds.