By Senad Karaahmetovic

ServiceNow (NYSE) had its Analyst Day yesterday. The company raised FY24- and FY26 target numbers from last year’s mid-term guidance.

The company now expects over $11billion in subscription revenues. This represents a significant increase on the previous forecast of $10billion. Similar to the FY26 goal for subscription revenues, it has been increased from $15 billion down to $16billion.

For Citi’s Tyler Radke, ServiceNow’s analyst day struck a confident tone in a choppier market.

“We reiterate our Buy rating as we see NOW poised to continue to deliver hi-20s to 30%+ organic growth at scale with continued margin expansion as it leverages a large enterprise install base with a broadening portfolio of new products that can help modernize key organizational workflows,” the analyst said in a client note.

Evercore ISI analyst Kirk Materne believes NOW is “in a unique position to become the ‘platform of digital business’ and why its growth is durable even in a more uneven macro backdrop.”

“While we expect software could remain at the mercy of the broader market in the near-term (NOW included), we believe the six-month outlook for some of the scaled, cash generative SaaS names looks extremely attractive at current levels and this includes NOW,” Materne added.

Keith Bachman, a BMO analyst, reiterated his Outperform rating for NOW shares.

“While we remain defensive, given that NOW currently trades at a reasonable FCF valuation of about 28x EV/FY23 FCF, we think NOW stock is intriguing even in a weak tech tape,” the analyst told clients in a note.