New York, Jan 15, 2026, 11:32 ET — Regular session
- Shares of ServiceNow dropped roughly 1.4% during late morning trading
- Oppenheimer lowered its price target to $200 but maintained an Outperform rating
- Investors are gearing up for ServiceNow’s Jan. 28 earnings and watching closely for any news on demand for its AI tools
ServiceNow shares dropped Thursday following a price target cut from Oppenheimer, adding to the pressure on the workflow software company’s stock, which has struggled to hold steady this month.
Shares slipped 1.4% to $132.68 by late morning, after dipping as low as $132.46 earlier. Oppenheimer’s Brian Schwartz cut his price target from $230 to $200 but maintained an Outperform rating, indicating he still expects the stock to outpace its peers despite the downgrade. 1
Why it matters now: ServiceNow approaches its quarterly earnings later this month amid heightened investor scrutiny on enterprise software spending. The focus is on whether new AI add-ons are delivering consistent revenue or just generating buzz through demos.
The stock closed Wednesday down 2.6%, hovering roughly 44% below its 52-week peak, according to MarketWatch data. ServiceNow plans to release its fourth-quarter and full-year earnings after the market closes on Jan. 28, with a conference call to follow. 2
Security issues have once again hit the headlines. ServiceNow revealed a critical flaw in its AI Platform that “could enable an unauthenticated user to impersonate another user,” according to an advisory highlighted by The Hacker News. Aaron Costello from AppOmni described the vulnerability, dubbed BodySnatcher, as “the most severe AI-driven vulnerability uncovered to date.” The Hacker News reported that ServiceNow rolled out a fix in late October. AppOmni advised self-hosted customers to update to patched versions, while those on the cloud platform don’t need to act. 3
On Thursday, authID announced a new integration with ServiceNow designed to verify caller identity in contact centers. The app is now available on the ServiceNow Store. “Digital identity verification at the contact center” can help cut down on fraud, said authID CEO Rhon Daguro. 4
ServiceNow shares fell despite gains across U.S. equities. The S&P 500 climbed roughly 0.6%, while the Nasdaq rose around 0.9% in late morning trading. 5
Shares in Salesforce dropped roughly 1.4%, contrasting with Workday’s 0.6% gain. Microsoft edged up around 0.3%.
ServiceNow offers subscription software designed to streamline IT and employee workflows. Lately, it has been ramping up its focus on “AI agents” — software capable of acting autonomously for users. Investors are keen to see if this strategy boosts subscription growth and if management comments on deal cycle improvements or signs of tighter budgets among clients.
They’ll also zero in on remaining performance obligations, which tracks contracted future revenue, and watch closely to see if operating margins stay steady as ServiceNow invests in product development and go-to-market efforts.
The coming weeks hold some risks. A cautious forecast on Jan. 28 might extend the streak of target cuts. Security concerns—even after fixes—could also undermine confidence among big clients that channel critical workflows through one platform.
ServiceNow’s earnings drop on Jan. 28 after the market closes, followed by its conference call the same day, stands out as the next key catalyst.
