"Barclays characterized Q1 2026 as near-perfect execution for ServiceNow, with subscription revenue reaching $3.671 billion and an operating margin of 32%. The renewal rate remained strong at 97%, indicating robust customer retention."
"CEO Bill McDermott emphasized the accelerating adoption of Now Assist, raising its 2026 target to $1.5 billion. The number of customers spending over $1 million on Now Assist increased by over 130% year over year."
"ServiceNow's total addressable market now exceeds $600 billion, encompassing IT, security, CRM, and employee experience. A significant portion of new business operates under a non-seat-based pricing model that scales with AI usage."
Barclays raised ServiceNow's price target to $134, citing strong Q1 2026 earnings driven by AI product innovation. The company reported $3.671 billion in subscription revenue and a 32% operating margin. CEO Bill McDermott highlighted the growth of Now Assist and expanding deal sizes. The analysis suggests the target increase confirms existing bullish sentiment rather than indicating new catalysts. ServiceNow's total addressable market exceeds $600 billion, with a significant portion of new business utilizing a non-seat-based pricing model that benefits from AI usage.
Read at 24/7 Wall St.
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