New York, Jan 24, 2026, 06:09 EST — Market closed.
- Shares of ServiceNow closed Friday higher by 3.5%, finishing at $133.11.
- The workflow-software company will release its quarterly results after the bell on Jan. 28.
- Analysts are cutting price targets amid investor skepticism over software valuations and the actual returns from AI.
ServiceNow shares climbed 3.5% on Friday, ending the day at $133.11, as investors braced for next week’s earnings amid choppy trading in high-priced software stocks.
This matters since ServiceNow’s upcoming report is a key test for enterprise software demand. The stock’s been trading as if it’s a referendum on whether AI features can maintain pricing power while companies hold IT spending steady.
U.S. stocks closed mixed Friday, with the Nasdaq nudging up thanks to gains in tech, despite a drag from Intel’s disappointing forecast. “We’re going to be in a ‘show-me’ period,” said Janus Henderson portfolio manager Julian McManus, as investors zero in on revenue growth amid earnings season. 1
ServiceNow clawed back some ground after falling earlier this week, jumping 2.6% on Thursday. Still, the stock remains over 46% shy of its 52-week peak, according to MarketWatch. 2
ServiceNow will report its fourth-quarter and full-year 2025 results after the U.S. market closes on Wednesday, Jan. 28, the company said. It plans to hold a conference call later that day. Investors are closely watching subscription growth, which reflects recurring revenue from cloud contracts, along with the company’s outlook. 3
ServiceNow has unveiled a multi-year deal with OpenAI, aiming to embed OpenAI models directly into its platform. Amit Zavery from ServiceNow described this move as “the future of AI experiences” for its users. OpenAI’s COO Brad Lightcap added that the goal is to integrate “agentic AI into workflows” capable of handling tasks end-to-end. 4
ServiceNow has been leaning heavily on partners to expand the reach of its tools. The company announced upgrades to its global partner program and revamped its Build Program to bring more developers and independent software vendors into the fold. At the same time, it’s promoting the ServiceNow Store as the go-to marketplace for AI agents created by partners. 5
Analysts haven’t been idle. Cantor Fitzgerald dropped its price target to $200 from $240 on Friday but held onto an “Overweight” rating—a sign they expect the stock to outperform its peers, MarketScreener reports. On Thursday, BNP Paribas Exane slashed its target even more sharply, from $186 down to $120, yet maintained a Neutral rating, according to the same source. This shift reflects the so-called “multiple compression” investors are seeing—put simply, they’re paying less for each dollar of anticipated sales or earnings. 6
ServiceNow isn’t alone in feeling the squeeze. The wider software sector has been reacting to shifts in rate expectations and risk appetite. This week’s volatility in ServiceNow shares happened alongside steep, index-led moves that also dragged major enterprise players like Salesforce and Oracle.
Bulls face a hurdle: a strong quarter might fall short if the company signals caution or if customers hold back on big workflow deployments. The OpenAI partnership and partner efforts could also take a while to impact billings, leaving the stock vulnerable if investors feel the AI hype is already baked in.
U.S. markets reopen Monday, and traders are expected to keep a close eye on ServiceNow, tracking earnings news across the tech sector and any swings in risk appetite. ServiceNow’s calendar is particularly packed.
The next major event is Jan. 28, when ServiceNow reports earnings and fields investor questions. Investors will be watching closely for guidance and any specifics on how quickly AI features are converting into paid users, which could shape the stock’s momentum heading into February.
