CMB International Securities Maintains Buy Rating on ServiceNow (NOW) Stock

Core Viewpoint - ServiceNow, Inc. is recognized as a fundamentally strong stock with a maintained "Buy" rating and a price target of $1,180.00, supported by strong financial performance and strategic advancements [1]. Financial Performance - In Q3 2025, ServiceNow reported a total revenue of $3.4 billion, reflecting a 22% year-over-year increase, which met market expectations [2]. - Subscription revenue grew by 21.5% year-over-year to $3.2 billion, contributing to the overall revenue growth [2]. - The company's current remaining performance obligations (cRPO) increased by 21% year-over-year to $11.35 billion [2]. Operational Efficiency - The non-GAAP operating margin was reported at 33.5%, exceeding guidance by 300 basis points, driven by top-line outperformance and operational efficiencies [3]. - The growth in subscription revenues was primarily due to increased purchases from both new and existing customers [3]. Customer Growth - In Q3 2025, ServiceNow had 103 transactions with over $1 million in net new annual contract value and ended the quarter with 553 customers having over $5 million in annual contract value, marking an 18% year-over-year growth [4]. - For Q4 2025, the company anticipates subscription revenues between $3,420 million and $3,430 million, with cRPO growth projected at 23% year-over-year [4].