NEW YORK, Jan 11, 2026, 05:08 EST — Market closed
ServiceNow shares dropped 3% on Friday, ending the day at $141.80 and marking a second consecutive decline despite gains in U.S. indexes. The stock underperformed Salesforce and lagged behind Oracle and Synopsys. Trading volume hit 11.7 million shares, surpassing its 50-day average, according to MarketWatch data. This close leaves ServiceNow about 41% shy of its 52-week high of $239.62, reached on Jan. 28 last year. 1
ServiceNow’s slump stands out because it’s one of the market’s high-priced software giants, and the stock is still caught up in the debate over whether companies will keep expanding their “seats” — or paid user subscriptions — as automation spreads through back offices. On Friday, KeyBanc stuck to its “Underweight” rating, predicting the stock will trail the sector, with a $155 price target. Analyst Jackson Ader noted that investor resistance to the earlier downgrade was softer than expected but pointed to faster organic growth in 2026 as a potential upside to the bearish thesis. 2
Tuesday brings the next key test: the U.S. consumer price index, set for release at 8:30 a.m. ET. Last year’s government shutdown threw a wrench into inflation data collection. Wells Fargo’s Sarah House, Michael Pugliese, and Nicole Cervi noted that “data collection issues led to a surprisingly soft November CPI report,” but expect most of those distortions to clear in December’s figures. If inflation comes in hotter than anticipated, bond yields could spike, putting pressure on high-multiple software stocks. 3
ServiceNow dropped 3.12% Thursday, closing at $146.19 and ending its three-day rally. The stock underperformed despite modest gains in the broader market. Volume was lighter than normal, reflecting caution as the week winds down. 4
U.S. stocks closed Friday at new highs despite a mixed jobs report, with the S&P 500 rising 0.6% and the Dow climbing 0.5%, according to the Associated Press. Hiring came in softer than expected, but the unemployment rate beat forecasts, leaving investors divided on whether the Federal Reserve will soon ease rates. 5
ServiceNow has been fielding investor questions amid its acquisition spree. Back in December, the company struck a deal to buy cybersecurity startup Armis for $7.75 billion in cash, with the deal expected to close in the second half of 2026, according to Reuters. “Our security stack, with the acquisition of Armis, is very well positioned,” CFO Gina Mastantuono told Reuters. Valoir CEO Rebecca Wettemann described the move as part of a “buying spree” aimed at advancing orchestration and governance. 6
Against this backdrop, the stock faces pressure from two angles: interest rates and execution. Higher yields typically push investors to devalue companies with cash flows projected further into the future—software firms usually take the blunt of that shift.
Demand is another daily concern. ServiceNow offers tools that manage IT service desks, human resources, and other internal workflows. These budgets often shift in line with customer hiring plans, particularly within corporate support roles.
The setup works both ways. Should inflation ease and yields drop, investors could rush back into battered software leaders. But if inflation stays stubbornly high, mounting valuation pressure might weigh heavily during earnings season.
ServiceNow is set to release its fourth-quarter and full-year results on Jan. 28, after the market closes. The company will host a conference call at 2 p.m. Pacific. Investors will focus on subscription growth, margins, and any updates on the timing and financing of the Armis acquisition. 7
