"BTIG's core concern isn't the current business performance but rather what comes next. They believe consensus FY27 and FY28 subscription revenue growth estimates are too high, suggesting the market hasn't fully priced in a deceleration beyond FY26."
"The FY26 guidance itself projects subscription revenues between $15.53 billion and $15.57 billion, representing 19.5% to 20% constant currency growth. This includes approximately 100 basis points of contribution from the Moveworks acquisition, which tempers the organic growth picture."
ServiceNow's stock is under analyst scrutiny as price targets are cut by firms like BTIG and Goldman Sachs. BTIG lowered its target to $185, citing aggressive FY26 subscription revenue growth guidance. The company has seen a 33% decline in shares year-to-date. Analysts express concerns about future revenue growth estimates for FY27 and FY28, suggesting they may be too high. The FY26 guidance projects subscription revenues of $15.53 billion to $15.57 billion, indicating solid growth but tempered by acquisition contributions.
Read at 24/7 Wall St.
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