现在服务公司：4Q25 results: solid AI business and margin expansion-20260130

Investment Rating - The report maintains a BUY rating for ServiceNow, indicating a potential return of over 15% over the next 12 months [17]. Core Insights - ServiceNow reported a total revenue increase of 21% YoY to US$3.57 billion in 4Q25, aligning with Bloomberg consensus estimates. Non-GAAP operating income grew by 26% YoY to US$1.10 billion, exceeding consensus by 3% due to AI-enhanced efficiencies and disciplined expense control [1]. - For FY26E, management guided subscription revenue to increase by 20.5%-21% YoY to US$15.53-15.57 billion, with a further 100bps expansion of both non-GAAP operating profit and free cash flow margin to 32% and 36%, respectively, driven by AI-enabled efficiency gains [1]. - The AI product momentum remains strong, with Now Assist annual contract value (ACV) surpassing US$600 million in 4Q25, ahead of the previous target of US$500 million and on track to reach US$1 billion by FY26-end [1]. - The target price for ServiceNow has been lowered to US$215.00 based on a 40x FY26E EV/EBITDA, down from US$236.00 based on a 45x FY26E EV/EBITDA, reflecting sector valuation impacts due to increased competition from AI and LLM service providers [1][12]. Financial Summary - For FY26E, total revenue is projected at US$15.973 billion, with adjusted net profit expected to reach US$4.518 billion, resulting in an adjusted EPS of US$4.36 [2]. - The company’s market capitalization is approximately US$122.22 billion, with a current share price of US$116.73, indicating an upside potential of 84.2% to the target price [3][4]. - The non-GAAP operating profit margin expanded by 1.4 percentage points YoY to 30.9% in 4Q25, attributed to improved efficiency and disciplined expense control [9]. Growth Projections - Subscription revenue is expected to grow by 20.3% in FY26E, with adjusted net profit growth projected at 23.2% [15]. - The company anticipates a revenue growth rate of 20.5%-21% for FY26E, with further growth expected in subsequent years [1][14]. Valuation - The valuation of ServiceNow is set at US$215.00 per share based on a target EV/EBITDA of 40x for FY26E, which is at a premium to the sector average of 29x, justified by the strong earnings growth outlook [12][13].