-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
NOW posted mixed Q1 results, with revenue of $3.77B beating consensus by $20M, and non-GAAP EPS of $0.97 in line with estimates. Total revenues grew 22% Y/Y, while Subscription revenues of $3.671B increased 22% Y/Y, at the high end of the constant currency guidance. AI product adoption surged, with Now Assist customers spending over $1M in ACV growing 130%+ Y/Y, reflecting strong AI monetization momentum, alongside 16 transactions over $5M in net new ACV (up 80% Y/Y). Current RPO of $12.64B grew 22.5% Y/Y, exceeding the 20% constant currency target by 100 bps, demonstrating solid bookings momentum. However, management lowered 2026 guidance incorporating the early closure of the $2.4B Armis acquisition and geopolitical headwinds from delayed Middle East deals. The Armis deal adds 125 bps to growth but creates near-term margin pressure of ~75 bps to operating margin and ~200 bps to FCF margin, with trajectories expected to normalize in 2027.