New York, January 27, 2026, 11:46 (ET) — Regular session
- ServiceNow shares slipped roughly 3% in late-morning New York trading, underperforming the stronger Nasdaq.
- ServiceNow earnings and U.S. monetary policy announcements collide on an already busy midweek schedule.
- Investors are focused on guidance and subscription growth to gauge whether enterprise spending remains steady.
Shares of ServiceNow (NOW) slipped 2.9% to $132.39 in late-morning trading Tuesday, deepening their retreat ahead of the software company’s quarterly earnings report on Wednesday. The stock fluctuated between $130.95 and $137.42, with roughly 4.3 million shares traded.
The timing is crucial. ServiceNow is set to report during a packed earnings week, where investors have been quick to punish software companies that miss guidance or signal weaker demand.
Rate expectations are under fresh scrutiny, and growth stocks often react sharply to even minor tweaks in interest-rate forecasts. This happens even when the updates aren’t directly related to those sectors.
Zacks projects ServiceNow’s Q4 revenue at roughly $3.52 billion, with earnings per share hitting 87 cents, based on consensus estimates. Traders typically zero in on subscription revenue, the steady stream from software contracts, which Zacks puts at $3.43 billion. 1
Beyond the raw numbers, some bulls are focusing on the company’s move past its IT origins. David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, pointed to ServiceNow’s push into customer-service management. Jefferies analyst Samad Samana added that a forecast of 19% organic growth would ignite “real enthusiasm” among buy-side investors, MarketWatch reported. 2
Markets showed a mixed picture Tuesday: the S&P 500 and Nasdaq edged up, while the Dow slipped as investors digested early earnings from key firms. “The impetus for markets to continue to rise is going to be an earnings story rather than a multiples story,” noted Charlie Ripley, senior investment strategist at Allianz investment management. 3
The Federal Reserve wraps up its two-day meeting Wednesday, with rates expected to stay put between 3.50% and 3.75%. Investors are zeroing in on the Fed’s guidance and the chatter around its leadership and independence. Michael Pearce, chief U.S. economist at Oxford Economics, described the near-term outlook as “benign,” though he cautioned that external developments could still alter the course. 4
ServiceNow provides cloud software designed to streamline and automate workflows across IT, customer service, and other business areas. Its Now Platform remains central to digital back-office initiatives at major enterprises, while CEO Bill McDermott is driving expansion into wider AI-related applications. 5
The flip side is clear: if ServiceNow signals slower deal cycles, more challenging renewals, or tighter budgets, its stock could drop sharply. Investors are already jittery over what “normal” growth will actually mean in 2026.
On Wednesday, ServiceNow will report its earnings after the market closes and hold a conference call at 2 p.m. Pacific time. Investors will be focused on the 2026 outlook and any shifts in demand sentiment. 6
