ServiceNow falls after BMO trims PT on potential reduction in federal contracts

Brokerage BMO Capital Markets cuts PT on digital workflow company ServiceNow NOW.N to $990 from $1,185, rating remains unchanged at "outperform"

Shares of NOW fall 4.3% to $739.08

Brokerage flags uncertainties for co surrounding lesser contracts from the U.S. federal government as well as broader risks to global GDP growth from tariffs

Brokerage believes along with IBM IBM.N and Accenture ACN.N, NOW has high exposure to the U.S. Federal government, which accounts for around 10% of its Annual Contract Value and subscription revenues

Brokerage says co's Fed business has slowed down in early 2025, which could impact company's subscription revenue growth

Forty one out of 47 brokerages rate the stock "buy" or higher, 5 rate "hold", 1 rate "strong sell"; their median PT is $1,145 as per data compiled by LSEG

Including session's move, NOW stock down 30.3% YTD