UBS downgrades ServiceNow to Neutral and cuts target to $100 from $170

UBS cut ServiceNow to Neutral from Buy and lowered its price target to $100 from $170, a cut of about 41%. The analysts said their confidence in ServiceNow's edge in AI had weakened and that enterprise budgets were shifting toward AI at the expense of core software. They lowered their forecast for current remaining performance obligations growth at the end of 2026 to 16% from 20%. The shares fell about 8% that day to around $83.

• Rating changed from Buy to Neutral; price target $100, down from $170
• End-2026 cRPO growth estimate cut to 16% from 20%
• UBS says more than half of its enterprise customer calls mention pulling back on core software spend
• Shares fell about 8% on the day