ServiceNow Falls 6% After UBS Cuts Price Target by 40% to $100
ServiceNow shares fell about 6% after UBS downgraded the company to Neutral and cut its price target to $100 from $170, citing budget pressures and weaker confidence in its AI-era positioning. The stock declined 19% over the week, marking its worst S&P 500 performance since 2016.
1. UBS Downgrades to Neutral and Slashes Price Target
UBS lowered its rating on ServiceNow to Neutral from Buy and cut its price target from $170 to $100. The firm trimmed its remaining performance obligations growth forecast to 16% by end-2026, down from 20%, citing rising customer anecdotes of core software budget constraints and uneven support at the agent orchestration layer.
2. Shares Plummet with Worst Weekly Performance Since 2016
ServiceNow shares dropped about 6% in a single session and plunged 19% over the week, marking the largest weekly decline since 2016 on the S&P 500. The selloff reflects a broader de-rating of high-multiple software stocks and shifting IT budgets toward AI projects at the expense of traditional workflow software.