New York, June 17, 2026, 17:08 (EDT)
- ServiceNow was last seen at $95.48, off $5.86, or roughly 5.8%. Shares earlier hit $95.13 at the session low.
- U.S. equities moved sharply lower after the Federal Reserve kept rates unchanged, but hinted at a more hawkish approach. That suggests policy could remain tighter or even see another rate hike.
- Benchmark’s Yi Fu Lee lifted the ServiceNow target to $130 from $125 on June 15. Shares still traded lower two days after the update.
ServiceNow shares dropped almost 6% late Wednesday, sliding for a second day as traders dumped software names following the Fed’s first meeting led by Chair Kevin Warsh. Shares last traded at $95.48, with more than 31.8 million shares changing hands.
ServiceNow is still valued like a long-term growth stock, so the move made a difference. Rising interest-rate expectations can weigh on these names, since higher yields cut the present value of future earnings.
The S&P 500 dropped 1.21% and the Nasdaq Composite slid 1.34%, LSEG data showed, according to Reuters. Michael James at Rosenblatt Securities called the Fed message a “hawkish tilt,” citing what he said was a “commitment to deliver price stability” from the central bank. Reuters
ServiceNow dropped 2.71% Tuesday, settling at $101.33. The Dow climbed while the S&P 500 slipped but didn’t fall as much. MarketWatch noted ServiceNow’s shares dropped more than Salesforce or Oracle on the day, both enterprise software rivals.
Software stocks fell across the board. Salesforce slid 4.1%, Oracle gave up 2.5%, Adobe tumbled 5.3%. The iShares Expanded Tech-Software Sector ETF, which tracks software names, dropped 2.3%.
Sell-side support stayed in place. Benchmark’s Yi Fu Lee raised the ServiceNow price target to $130 from $125 after a fireside chat with Darren Yip, ServiceNow’s head of investor relations and market insights. The firm called ServiceNow a “top large cap value pick” and pointed to what it called one of the “cleanest operating models” in SaaS, short for software delivered online by subscription. TipRanks
ServiceNow’s first-quarter numbers are still the company’s dominant story. Subscription revenue climbed 22% to $3.67 billion. Current remaining performance obligations, which is contracted revenue due in the next year, increased 22.5% to $12.64 billion.
ServiceNow CEO Bill McDermott said the company’s AI growth was “far exceeding even our own expectations.” CFO Gina Mastantuono said ServiceNow beat the high end of its guidance, increased free cash flow, and “returned capital to shareholders.” ServiceNow Newsroom
The downside is still on the table. Reuters said in April that first-quarter subscription revenue growth took a 0.75 percentage point hit from Middle East deal delays. The Armis buy is set to pressure 2026 cash flow and margins. COO Amit Zavery told Reuters, “I am not worried about the narrative,” pushing back on worries that AI tools could cut into traditional software demand. Reuters
The trading calendar could spur sharper action. Nasdaq wraps up the regular session at 4 p.m. Eastern. With U.S. equity markets shut on Friday, June 19 for Juneteenth, Thursday is the week’s last full regular session.
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