New York, Feb 6, 2026, 11:33 EST — Regular session
- ServiceNow shares dipped in late-morning trading, following a tough week for software stocks
- Investors have divided the AI trade, favoring data-center “suppliers” while viewing some software companies as vulnerable
- Attention turns to new signs of enterprise demand and ServiceNow’s customer conference in May
ServiceNow, Inc. shares slipped 1.3% to $101.25 in late-morning trading on Friday, after fluctuating between $99.02 and $105.54 earlier in the session. The stock closed Thursday at $102.63.
The shift unfolds as investors rethink the “AI trade”—the broad wager on firms tied to artificial intelligence—and trim stakes in software stocks. ServiceNow, for instance, dropped roughly 12% this week. The market is drawing clearer distinctions between the enablers and those at risk, noted Charu Chanana, chief investment strategist at Saxo. 1
U.S. stocks found some footing Friday following a tech sell-off that stretched over the week, though doubts about AI infrastructure spending are gaining ground. “There’s a period of greater discernment,” said Kristina Hooper, chief market strategist at Man Group, as the S&P 500’s software and services index faced its steepest weekly decline since March 2020. 2
One major pressure point has been the speed of new AI releases. On Thursday, Anthropic rolled out Claude Opus 4.6, boasting the ability to handle much larger prompts — these “tokens” are pieces of text AI systems process — along with better performance in coding and finance tasks. Salesforce and Workday each slipped about 3%. Scott White, Anthropic’s head of enterprise products, said the aim is to link AI with legacy tools and “get more value” from them. 3
ServiceNow insists its models will boost demand for workflow software, not replace it. OpenAI announced a multi-year deal positioning its models as the preferred AI choice for enterprises handling over 80 billion workflows annually on ServiceNow, including upcoming native voice features. 4
In late January, ServiceNow reported it “significantly beat” fourth-quarter estimates and set a 2026 subscription revenue forecast between $15.53 billion and $15.57 billion. The company also approved an extra $5 billion for share buybacks and noted that a 5-for-1 stock split took effect on Dec. 17. 5
An investor filings log reveals the company submitted its annual report on Form 10-K on Jan. 29, following a results-related Form 8-K filed the day before. 6
A separate filing revealed that Chairman and CEO William R. McDermott was granted 40,014 restricted stock units linked to performance targets, with vesting scheduled for Feb. 7, contingent on ongoing service. 7
The tape confirms the selling, not just the headlines. The iShares Expanded Tech-Software ETF has tumbled roughly 19% over eight sessions, marking its steepest slide in nearly six years. Investors are wrestling with whether rapidly advancing AI tools will supplant tasks traditionally handled by specialized software. 8
Still, traders remain fixated on the downside risk: if AI continues to automate tasks behind software subscriptions and data services, clients might delay renewals and new projects. That would keep valuation multiples pressured. Anthropic’s recent upgrade shook up players like FactSet and S&P Global, highlighting how fast “replacement” worries can ripple through the sector. 9
ServiceNow’s next big moment won’t hinge on one news item but on laying out its future plans openly. The company’s Knowledge conference is set for May 5–7 in Las Vegas, featuring keynotes from CEO Bill McDermott and other top execs. 10
