NEW YORK, June 29, 2026, 05:05 EDT
- ServiceNow, Inc. NYSE:NOW closed Friday at $98.34, up 9.85%, after opening at $90.44 and trading as high as $98.92.
- The one-session gain added about $9.1 billion of equity value, equal to about 72% of the company’s $12.64 billion first-quarter current remaining performance obligations.
- The NYSE core session had not opened at the dateline time; NYSE core trading runs from 9:30 a.m. to 4:00 p.m. ET.
ServiceNow, Inc. NYSE:NOW goes into Monday’s pre-core session with a cleaner test than most software stocks: whether Friday’s sharp move priced in a real bookings shift, or just a one-day break from the AI selloff.
The stock closed at $98.34 on Friday, up $8.82, or 9.85%, with volume near 27.3 million shares. That was still 53.5% below its 52-week high of $211.48, based on MarketWatch’s listed range.
Using MarketWatch’s 1.03 billion shares outstanding, the Friday gain added about $9.1 billion in market value. That is the part that matters. ServiceNow’s first-quarter cRPO, the contract revenue due over the next 12 months, was $12.64 billion. Its total remaining performance obligations were $27.7 billion.
| Friday ServiceNow move | Figure | Investor read-through |
|---|---|---|
| Share gain | $8.82 | One-day reset in software risk |
| Implied equity value added | ~$9.1 bln | Roughly 72% of Q1 cRPO |
| Q1 subscription revenue | $3.671 bln | Friday value add was about 2.5 quarters of Q1 subscription sales |
| Q1 cRPO | $12.64 bln | Contracted 12-month revenue base |
| Q1 RPO | $27.7 bln | Market cap is about 3.7 times this backlog measure |
Friday was not a full tech rebound. The S&P 500 fell 0.05%, the Nasdaq lost 0.24%, and the PHLX chip index dropped 5.3%, Reuters reported. David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, told Reuters that “questions around profitability and the capex story” in AI were “not going away.” Reuters
Software got the other side of that trade. MarketWatch said software stocks were Friday standouts as traders weighed a report that OpenAI could delay an IPO until next year due partly to financial strains. Barron’s said the iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) beat the VanEck Semiconductor ETF (NASDAQ:SMH) as Wall Street rotated out of some AI-linked winners.
| Friday move in selected software names | Close | Move |
|---|---|---|
| ServiceNow NYSE:NOW | $98.34 | +9.85% |
| Workday, Inc. NASDAQ:WDAY | $124.21 | +9.18% |
| Datadog, Inc. NASDAQ:DDOG | $239.77 | +8.52% |
| AppLovin Corp. NASDAQ:APP | $477.08 | +6.99% |
A near-term ServiceNow-specific marker sits on Tuesday. Raymond James analyst Adam Tindle wrote last week that customer checks showed “early data points” around price increases. ServiceNow had disclosed a 20% to 30% pricing uplift for customers moving from legacy tiers to new Foundation, Advanced and Prime tiers, while Raymond James saw signs that actual increases could come in above that range. Investing.com
Tindle said June 30 may be the last date to buy legacy tiers, with those offers expected to be retired over 12 to 18 months. That could pull renewals forward. It also gives investors a narrow thing to watch when ServiceNow next reports bookings.
The company’s April numbers give bulls a base for that argument. ServiceNow reported first-quarter subscription revenue of $3.671 billion, up 22%, and said customers spending more than $1 million in annual contract value on Now Assist grew more than 130% from a year earlier.
Chairman and CEO Bill McDermott said in that release that AI growth was “far exceeding even our own expectations.” President and CFO Gina Mastantuono said the early close of the Armis acquisition “meaningfully expands our TAM.” SEC
The risk is that Friday’s gain already paid for too much before fresh bookings data. The stock traded at about 6.9 times annualized first-quarter subscription revenue and about 8.0 times cRPO after Friday’s close, using the latest reported market cap and contract data. Short interest stood at 59.49 million shares, or 5.82% of the float, MarketWatch data showed.
The U.S. week is short. NYSE markets list July 3 as closed for the observed Independence Day holiday, while Nasdaq’s schedule also shows the market shut that day. The June payrolls report is due Thursday because U.S. stock and bond markets are closed Friday.
