New York, Feb 9, 2026, 11:17 EST — Regular session
ServiceNow (NOW) climbed 2.3% to $103.04 by late morning Monday, having swung from a low of $98.69 up to $103.10 earlier in the session.
Investors are scrambling to gauge where U.S. software stocks might stabilize after last week’s steep drop—sparked by a new legal move related to Anthropic’s Claude model that reignited fears about AI’s impact on established software revenues. Over the past three months, the software and services sector has trailed the S&P 500 by almost 24 percentage points, according to a Reuters analysis. ServiceNow is down over 40% since the tech rally in late October; meanwhile, 30-day implied volatility on the iShares Expanded Tech-Software Sector ETF remains elevated near 41%. 1
Choppy action is colliding with a loaded stretch of data releases. Wall Street’s major indexes wobbled as traders waited for both the delayed January U.S. payrolls numbers and the latest CPI print. The spotlight also stays on whether the tech giants’ heavy bets on AI will actually deliver. “Investors are less comfortable with the amount of spending, but more comfortable with those companies that can do it with free cash flow,” said Art Hogan, chief market strategist at B Riley Wealth. 2
Software stocks split directions. IGV, the software ETF, rose 2.3%. Oracle surged close to 10%. Salesforce tacked on 1.5%. Workday, though, dropped 7.8%.
ServiceNow shares remain under pressure along with the broader software sector, despite the company rolling out bullish targets in late January and ramping up its AI collaborations. The company is projecting subscription revenue between $15.53 billion and $15.57 billion for fiscal 2026, and it’s boosting its buyback authorization. “ServiceNow is growing both organically and by acquisition to expand its market opportunity,” said Valoir CEO Rebecca Wettemann. 3
Part of the action on the tape comes down to mechanics. Investors trim their stakes in high-growth software stocks, but then they swoop back in on sudden dips. The result? Brief, sturdy-looking rallies that tend to fizzle out within the hour.
Beneath the headlines, a more fundamental argument simmers. Should these new AI tools lower the barrier for creating or switching software, the math behind subscription models could turn on a dime—pricing takes a hit, renewals become a tougher sell, and growth starts to lose its usual reliability.
The upside scenario isn’t without risk. Should this week’s data drive rate expectations up, software names usually feel it first—multiples get clipped, even with no fresh headlines from the companies themselves.
ServiceNow investors will be watching for any additional commentary from management outside the regular earnings calendar. According to the company, executives are set for appearances at the Bernstein TMT Forum on Feb. 25 and the Morgan Stanley TMT Conference on March 4. 4
