NEW YORK, Jan 2, 2026, 12:47 ET — Regular session
ServiceNow Inc (NYSE: NOW) shares fell 3.3% to $148.10 in midday trading on Friday. The stock has ranged from $145.65 to $154.69, with about 4.6 million shares traded.
The move underscores how quickly investors are repricing high-growth cloud software names as 2026 gets underway. ServiceNow is widely watched as a gauge of enterprise software demand because its workflow products sit deep inside corporate IT operations.
Attention is also shifting to next week’s catalysts, led by the U.S. monthly employment report on Jan. 9 and consumer price index data on Jan. 13, Reuters reported. Fourth-quarter earnings season begins in earnest with results from JPMorgan and other major banks on Jan. 13, sharpening focus on growth and guidance — and the outlook for U.S. Federal Reserve policy.
Broader U.S. equities were steady: the S&P 500 proxy SPY was up about 0.1%, while the Nasdaq-tracking QQQ slipped roughly 0.2%.
Software shares lagged. The iShares Expanded Tech-Software Sector ETF (IGV) fell about 2.4%, while Salesforce dropped about 2.9% and Workday slid nearly 5%.
Growth software stocks often trade like “long-duration” assets — investors value them mainly on profits expected years into the future. That makes them sensitive to shifts in interest-rate expectations, which can quickly change how much investors are willing to pay for future cash flows.
ServiceNow sells subscription software — known as software-as-a-service, or SaaS — that helps companies run and automate IT and business workflows over the internet. Demand for those subscriptions can cool if customers pull back on discretionary tech spending.
In early trading, investors kept a close eye on the rates outlook. “The next Fed Chair is probably going to be much more dovish than Jerome Powell,” said Dennis Dick, chief market strategist at Stock Trader Network. 1
ServiceNow has also been pitching more AI features in its platform to speed up work such as handling employee and customer requests. Investors have been looking for clearer evidence that those tools can lift subscription growth without pressuring margins.
ServiceNow said on Dec. 23 it agreed to acquire cybersecurity firm Armis for about $7.75 billion in cash, and expects to fund the deal with a mix of cash on hand and debt. The company said the transaction is expected to close in the second half of 2026, subject to regulatory approvals and other closing conditions. 2
For now, traders are treating the first week of the year as a test of risk appetite across software, after a volatile stretch late in 2025. Next week’s economic data and early earnings updates will help set the tone for valuation-sensitive names like ServiceNow.
ServiceNow was last down about 3% at midday, underperforming a largely flat broader market. Investors will be watching next week’s jobs and inflation readings for clues on rates — and whether software shares regain traction.
