ServiceNow Inc (NOW) Sees Subscription Sales Accelerating in 2026

Group 1: Company Performance - ServiceNow Inc reported Q4 2025 results with revenue of $3.57 billion, a 20.5% year-over-year increase, surpassing Wall Street expectations of $3.53 billion [3] - Earnings per share (EPS) for Q4 2025 was $0.92, exceeding the expected $0.88 [3] - The subscription business, which constitutes the majority of ServiceNow's revenue, grew 21% year-over-year to $3.47 billion [3] Group 2: Future Guidance - ServiceNow anticipates subscription sales for Q1 2026 to be between $3.65 billion and $3.66 billion, indicating a year-over-year growth of 21.5% at the midpoint [4] - The acquisition of Moveworks is expected to enhance subscription revenue by 100 basis points in Q1 2026 and for the full year [4] Group 3: Market Position and Analyst Opinions - Oppenheimer identified ServiceNow as one of the top US software stocks to watch, highlighting its potential to regain momentum through improved execution and strategic initiatives [1] - Truist reduced its price target for ServiceNow from $240 to $175 but maintained a Buy rating, emphasizing the importance of AI adoption for long-term value [2] - The software industry has faced challenges in monetizing AI, but companies like ServiceNow are seen as having significant upside potential [1][2]