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UBS Downgrades ServiceNow (NOW) Price Target From $170 to $100

UBS has downgraded ServiceNow (NOW) from Buy to Neutral, significantly reducing its price target to $100 from $170. This adjustment reflects concerns over tightening budgets for non-AI software, which could adversely affect ServiceNow's revenue. ServiceNow projects subscription revenue growth of 18.5% to 19% for 2026, but lower estimates for remaining performance obligations growth to 16% from 20% signal slowing demand. UBS expects smaller earnings beats in the coming quarters, indicating a potential shift in market dynamics for AI-driven companies.