ServiceNow, Inc. (NOW.N): Checks Add Optimism Into Year End

Citi approaches Q3 earnings for ServiceNow (NOW.N) with increased confidence and modestly raises its 2H cRPO and 2027-28 estimates. While fieldwork still surfaced mixed partner feedback, sentiment improved modestly, particularly around new AI SKUs and federal, while the CIO survey suggests broader IT budget improvements. This, along with a conservative guidance philosophy signaled by management, gives more confidence in a beat/raise with potential for a slight organic cRPO acceleration in Q3. Partners remained mixed but turned modestly more constructive, with improving interest in new AI SKUs and a more optimistic Q4 renewal pipeline;