New York, Jan 28, 2026, 15:01 EST — Regular session
- ServiceNow shares dipped roughly 1.2% in afternoon trading as investors braced for earnings due after the bell.
- Wall Street zeroes in on subscription growth and backlog—crucial indicators of enterprise software demand.
- The Fed paused on rate hikes, maintaining pressure on pricey growth stocks.
Shares of ServiceNow (NOW.N) slipped 1.2% to $130.24 by Wednesday afternoon, erasing earlier gains as investors stayed cautious ahead of the company’s upcoming quarterly earnings report.
This report is crucial since ServiceNow straddles two heated areas: enterprise software budgets and the rush to embed “AI agents” in business processes. Its guidance often jolts the stock, particularly with the market already loaded up on upbeat tech expectations.
The wider market remained volatile. The S&P 500 edged down following the Federal Reserve’s decision to keep rates unchanged, giving little indication on the timing of future cuts. Investors are also gearing up for a slew of big-tech earnings reports after the bell. 1
Investors tracking ServiceNow often focus on subscription revenue—the steady stream from cloud software sales—and backlog figures. A crucial metric here is remaining performance obligations, which represents the contracted revenue the company hasn’t recognized yet.
Analysts are forecasting revenue around $3.53 billion for the quarter, marking about a 19% increase year-over-year, based on a recent preview that also set adjusted earnings at $0.89 per share. That preview highlighted that ServiceNow’s stock has fallen over the last month, lagging behind a wider sell-off among its peers. 2
The company has been pushing to clarify its AI narrative. This theme runs through enterprise software, where investors demand evidence that AI upgrades boost renewals and pricing, not just add expenses.
On Jan. 20, ServiceNow announced an expanded partnership with OpenAI, focusing on developing more “agentic” tools—software designed to handle multi-step tasks within business workflows. ServiceNow president and chief product officer Amit Zavery described the aim as creating AI capable of “taking end-to-end action” in complex enterprise settings. Meanwhile, OpenAI COO Brad Lightcap emphasized the importance of solutions that are both “secure” and “scalable.” 3
Salesforce and Workday, among others, have been rolling out comparable AI-powered automation, pushing customer expectations higher for upgrades and add-ons.
The setup cuts both ways. When customers tighten budgets, hold off on rollouts, or resist pricing, it typically hits bookings, billings, or backlog first — and markets often react before the full picture emerges.
Traders’ next focus: ServiceNow’s earnings release after the bell, followed by the company’s conference call at 5 p.m. ET. 4
