UBS Downgrades ServiceNow to Neutral, Slashes Price Target t (NOW)

UBS Downgrades ServiceNow to Neutral, Slashes Price Target to $100

Apr 10, 2026 20:18 UTC

NOW

Short term

ServiceNow (NYSE: NOW) experienced a sharp sell-off on Friday after UBS downgraded the software-as-a-service (SaaS) provider from 'Buy' to 'Neutral.' The firm significantly lowered its price target for the stock, dropping it from $170 to $100. The downgrade comes as UBS expresses uncertainty over whether ServiceNow is better positioned to capitalize on the artificial intelligence computing boom than its industry peers. Additionally, the firm indicated that it no longer expects the company to consistently exceed analyst expectations in upcoming quarters as it has in the past. As of mid-afternoon Friday, shares were trading down 7.1%, capping a week of consistent declines. The new $100 price target represents an approximate 11% upside from the previous day's closing price of $89.81. Despite the downgrade, ServiceNow's internal projections for 2026 remain optimistic. The company expects subscription revenue growth to exceed 20% year-over-year. Furthermore, it forecasts a free cash flow margin of 36% for 2026, an increase from 31.5% in 2024 and 35% in 2025. The current price action reflects a shift in investor sentiment as the market weighs long-term AI potential against immediate valuation concerns and analyst skepticism.

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UBS Downgrades ServiceNow to Neutral, Slashes Price Target to $100

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