ServiceNow Boosts Buyback to $6.4B, Earmarks $2B Accelerated Repurchase
ServiceNow authorized a $5 billion buyback, raising total repurchase capacity to $6.4 billion (6.1% of its $105 billion market cap) and allocating $2 billion to an accelerated share repurchase. Its shares have fallen over 40% in three months despite beating sales and earnings estimates and forecasting 100 basis-point margin expansion for 2026.
1. Buyback Program Details
ServiceNow approved a new $5 billion share repurchase, adding to $1.4 billion of unused capacity for a total of $6.4 billion. This represents 6.1% of its $105 billion market capitalization, with $2 billion earmarked for an accelerated share repurchase to quickly capitalize on the lower share price.
2. Stock Performance and Fundamentals
Over the past three months, ServiceNow shares have declined more than 40% amid investor concerns over emerging AI competition. The company continues to deliver robust results, beating sales and adjusted EPS estimates in its latest quarter and projecting a 100 basis-point increase in operating and free cash flow margins in 2026.
3. Analyst Outlook and Upside
Despite the stock’s recent slide, analysts maintain bullish price targets near $193, implying roughly 91% upside, and an average target around $182 indicating about 81% potential gain. This sustained optimism underscores confidence in ServiceNow’s growth trajectory and strategic capital return initiatives.