New York, Jan 14, 2026, 12:49 EST — Regular session
- ServiceNow shares dropped roughly 2.6% by midday, deepening their steep decline from earlier this year.
- Evercore ISI stuck with its Outperform rating, noting steady demand and highlighting interest in “Now Assist” AI tools.
- Investors are zeroing in on the Jan. 28 results, expecting updates on guidance and the acquisition pipeline.
ServiceNow shares dropped 2.6% to $134.64 on Wednesday, after hitting a low of $134.43 earlier in the session. The stock had closed at $138.19 on Tuesday.
This move is significant as the stock has been dropping alongside the wider software sector, with traders growing nervous ahead of earnings. Around this price point, even a slight shift in demand outlook can quickly move the tape.
ServiceNow is set to release its quarterly results in two weeks. The stock has turned into a key gauge of whether large firms continue investing in workflow software or hold back on projects once more.
Evercore ISI maintained its Outperform rating on ServiceNow, holding the price target at $225. The firm pointed to solid demand and growing interest in the company’s “Now Assist” product. They also emphasized “annual recurring revenue,” a subscription-based metric that annualizes contracted revenue, as a crucial measure for tracking ServiceNow’s AI efforts. 1
ServiceNow offers enterprise software designed to streamline IT and business workflows through its cloud platform, increasingly promoting AI capabilities to boost automation. 2
Investors are absorbing ServiceNow’s $7.75 billion deal to acquire cybersecurity startup Armis, marking the company’s largest acquisition yet, expected to finalize in the latter half of 2026. “Our security stack, with the acquisition of Armis, is very well positioned,” CFO Gina Mastantuono told Reuters. 3
In a separate note this week, Omdia analyst Adam Holtby described the Armis deal as “a platform power play,” designed to boost ServiceNow’s influence across security, risk, and AI governance. Holtby cautioned that success will depend heavily on how seamlessly Armis is woven into ServiceNow’s data and workflow layers. 4
The near-term risk is clear: if management downplays renewals, signals deal slippage, or reports slow adoption of new AI add-ons, the stock could remain stuck near its lows. On top of that, heavy M&A rumors wouldn’t provide any relief.
Investors are now focused on the upcoming earnings and guidance, not the buzzwords. For ServiceNow, the key points are subscription growth, insights on AI attach rates, and clues about customer budgets as companies finalize their plans for 2026.
ServiceNow will report its fourth-quarter and full-year 2025 earnings after the market closes on Jan. 28. A conference call is scheduled for 2 p.m. Pacific. 5
