BTIG Cuts ServiceNow Price Target Amid Revenue Growth Concerns

BTIG has reduced its price target for ServiceNow to $185 due to concerns about revenue growth. The target cut is based on a review of ServiceNow's FY26 revenue growth guidance. This decision reflects a shift in the investment view of BTIG on the company based on its financial expectations.

BTIG analyst Allan Verkhovski cut his NOW price target from $200 to $185 on April 7, 2026 — a 7.5% reduction — while maintaining a Buy rating, citing concerns that ServiceNow's FY2026 organic constant-currency subscription revenue growth guidance of ~19% is "comparatively aggressive" relative to the underlying business momentum.

The core concern is that near-term results depend heavily on Now Assist AI feature token consumption accelerating and M&A contributions rather than the base business. Verkhovski models FY2027 and FY2028 subscription growth at 17.5% and 16.5% respectively, below street consensus of 18.5% and 18.0% — a modest but meaningful deceleration thesis. NOW shares were trading around $102, near their 52-week low of $98 versus a high of $211.48, reflecting a broader de-rating of high-multiple enterprise SaaS names.

BTIG's cut follows a pattern of analysts recalibrating ServiceNow growth assumptions as the Now Assist AI upsell cycle proves slower to monetize than initially modeled. For bulls, the counter-argument is that AI workflow automation is still in early innings and contract expansion cycles are long; for bears, a stock still trading at elevated multiples relative to a 17–19% growth rate leaves limited margin of safety if guidance misses.