ServiceNow stock fell 2.54 percent as valuation concerns returned

Published on 10/04/2026 at 13:45 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

ServiceNow stock reported Q2 subscription revenue of USD 3.877 billion, up 23 percent in constant currency. A 42-analyst consensus sets USD 147.00 as its average target.

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ServiceNow stock (ISIN US81762P1021) fell 2.54 percent to USD 134.27 on October 2, 2026, at the NYSE. As MarketBeat reported on October 2, valuation concerns and limited margin progress weighed on the shares.

Q2 growth remains the anchor

ServiceNow's Q2 2026 subscription revenue reached USD 3.877 billion, growing 23 percent year over year in constant currency, according to Fortune on July 22, 2026. Current remaining performance obligations reached USD 13.2 billion, an increase of 21.5 percent in constant currency, while operating margin was 29.5 percent on a non-GAAP basis.

Management raised full-year 2026 subscription revenue guidance to USD 15.760 billion to USD 15.780 billion, compared with the previous midpoint of USD 15.7625 billion, according to Fortune. The Q3 outlook calls for subscription revenue of USD 3.975 billion to USD 3.980 billion and 20 percent growth in constant currency.

Analyst targets stay above the price

According to MarketBeat, 42 analysts give ServiceNow a Moderate Buy consensus, with an average target of USD 147.00, a high of USD 248.00 and a low of USD 72.00. The average target lies 9.5 percent above the October 2 price, leaving valuation as the main counterweight to the growth case.

Cantor Fitzgerald raised its target from USD 141.00 to USD 174.00 on September 21, 2026, while keeping an Overweight rating, according to Markets Insider. The target revision shows how strongly analysts are tying ServiceNow's valuation to AI adoption and enterprise software demand.

ServiceNow stock closes below its yearly high

ServiceNow stock closed at USD 134.27 on the NYSE on October 2, 2026, at 3:59 p.m. ET. Its 52-week range was USD 81.24 to USD 192.97, while market capitalization stood at USD 138.8 billion.