ServiceNow: 2Q26 Preview: Expecting More of the Same

Research evidence excerpt

ServiceNow: 2Q26 Preview: Expecting More of the Same

Deutsche Bank

Research

Rating Company Date

Buy ServiceNow 16 July 2026

North America Reuters Bloomberg Rating Buy

United States NOW.N NOW US Price target (USD) 135.00 Price at 14 Jul 26 104.85

52-week range 199.24 – 7.50

TMT

Software Valuation & Risks

2Q26 Preview: Expecting More of the Same

Brad Zelnick

We expect ServiceNow’s 2Q results to reflect a stable demand environment and Research Analyst

+1-212-250-8563 a broadly solid quarter. Our partner conversations indicate the core business

remains healthy, supported by increased interest in ITAM and CMDB Bhavin Shah, CFA

remediation. Importantly, we are not hearing evidence of customers delaying Research Analyst

deals because of AI-induced budgetary uncertainty or other macro factors. +1-212-250-6775

Instead, enterprises are investing in AI readiness assessments and getting their

Chris Fountain data estates solidified in preparing to deploy agents more effectively over time. Research Associate

Partners also described strong demand following Knowledge (see our recap), +1-212-250-1575

particularly around Control Tower, including multiple seven-figure transactions

and at least one seven-figure Now Assist commitment. AI adoption remains early Nick Giovacchini

as customers are beginning to move pilots into production and experiment with Research Associate

+1-212-250-9075

more agentic use cases, but scaled deployments and consumption have yet to

meaningfully inflect. Overall, the quarter appears consistent with our thesis of

durable core demand and promising AI optionality on the horizon, but meaningful

AI monetization likely remains a 2027 development. We continue to see favorable

risk/reward with shares trading at 10x Street EV/CY27E uFCF and 14x ex-SBC.