New York, January 30, 2026, 11:10 EST — Regular session
ServiceNow shares edged up 0.3% to $117.12 in late-morning trading on Friday, after fluctuating between $115.51 and $118.78 earlier in the session.
The modest bounce comes after Thursday’s steep drop, when the workflow-software company fell roughly 10%, despite beating estimates and delivering a 2026 outlook that exceeded forecasts. Piper Sandler’s Rob Owens described it as “another quarter of strong execution for NOW,” though some analysts highlighted investor jitters over the slower organic growth once the impact of recent acquisitions is removed. 1
Why it matters now: ServiceNow is increasingly seen as a bellwether for enterprise software spending and the rush to capitalise on “agentic” AI—tools that don’t just respond to prompts but actually take action. The Santa Clara, California-based firm projected 2026 subscription revenue between $15.53 billion and $15.57 billion, beating analysts’ $15.21 billion forecast. It also highlighted expanded collaborations with Anthropic and OpenAI amid rising pressure from autonomous AI agents. “With investments in industry workflows, AI and security, ServiceNow, we believe, is best positioned to be resilient in the face of competition,” said Rebecca Wettemann, CEO at Valoir. 2
ServiceNow reported a 21% jump in fourth-quarter subscription revenue, reaching $3.466 billion. Total revenue climbed 20.5% to $3.568 billion. The company’s current remaining performance obligations (cRPO), which represent contracted revenue expected within the next year, hit $12.85 billion. Notably, Now Assist’s net new annual contract value (ACV) more than doubled compared to the previous year. 3
During the earnings call, the company forecasted first-quarter subscription revenue between $3.65 billion and $3.655 billion, while reaffirming its full-year subscription outlook. It noted that a mix shift toward hosted revenue weighs on growth by about 1.5 percentage points, with Moveworks contributing roughly one point to the increase. 4
A recent regulatory filing revealed the board approved an extra $5 billion for its share repurchase program, adding to roughly $1.4 billion still left unused as of Dec. 31. ServiceNow noted buybacks might take place via open-market purchases or through an accelerated share repurchase, where a bank supplies shares immediately and settles the transaction afterward. 5
ServiceNow and payments processor Fiserv announced an expanded partnership, with Fiserv planning to ramp up its use of ServiceNow’s Now Assist in financial-services operations and IT service management. The rollout is slated for the first quarter. “Financial institutions operate in environments with zero tolerance for disruption,” said ServiceNow executive Paul Fipps. 6
Still, the downside can’t be ignored. ServiceNow’s annual report highlighted risks around data and privacy regulations, fast-changing tech in a cutthroat market, and operational plus regulatory hurdles from integrating AI into its offerings. The company also flagged the chance that acquisitions or investments might not pay off as hoped. On top of that, it cautioned that cybersecurity incidents — even just perceived ones — could lead to customer churn and legal troubles. 7
Investors are eyeing two upcoming events for fresh insights from management: a Bernstein TMT Forum panel on Feb. 25 and a Morgan Stanley TMT Conference fireside chat on March 4, the company confirmed. 8
