EL7.AI
StocksMediumUpdated×4•Originally published 16 April 2026•Updated 17 April 2026•
1 min read

Citi and Goldman Sachs Slash ServiceNow Price Targets Amid Valuation Concerns

Key Facts

1Citi analysts significantly slashed the price target for ServiceNow (NOW) to $177.
2Two analyst firms trimmed their price targets on the same day while maintaining positive ratings.

ServiceNow (NOW) faces intensifying operational headwinds as widespread corporate layoffs pose a direct threat to its seat-based revenue model. The company is increasingly identified as a primary victim of the 'SaaSpocalypse' due to its role as an integrator and manager for other software systems that are facing consolidation. To counter these risks, ServiceNow is pivoting toward 'Agentic AI' to create a competitive moat by automating complex internal workflows. While the company's AI solutions have already secured $600 million in annual contract value, the market remains wary of structural shifts in software licensing. Despite ongoing insider selling, institutional backing from firms like Lakehouse Global Growth suggests a complex tug-of-war between long-term AI potential and immediate macroeconomic pressures.