"Bernstein highlighted ServiceNow's revised long-term framework, which lifts the Rule of 40 target toward Rule of 60-plus by 2030. Free cash flow margins are implicitly rising 900 basis points versus 2025, and stock-based compensation is set to fall to less than 10% of revenue by 2029."
"The $30 billion 2030 subscription target points to mid-teens growth, which bears read as confirmation that the days of 20%-plus growth are ending."
"ServiceNow, led by CEO Bill McDermott, runs an AI-driven workflow platform now positioned as an 'AI control tower for business reinvention.' Q1 2026 subscription revenue reached $3.671 billion, growing 19% year-over-year in constant currency."
Bernstein analyst Peter Weed increased ServiceNow's price target to $236, maintaining an Outperform rating. The Analyst Day revealed a long-term margin and free cash flow win, but also a $30 billion subscription revenue target for 2030, indicating growth may slow to the mid-teens. ServiceNow's revised framework aims for a Rule of 60-plus by 2030, with rising free cash flow margins. Despite positive metrics, the growth forecast has raised concerns among analysts, as the company faces a significant stock decline year-to-date.
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