NEW YORK, Jan 3, 2026, 12:48 ET — Market closed
- ServiceNow shares closed down 3.75% on Friday, the first trading day of 2026.
- Enterprise software names lagged even as the Dow and S&P 500 ended higher.
- Investors next look to Jan. 9 U.S. jobs data and ServiceNow’s next earnings update.
ServiceNow, Inc. shares closed down $5.71, or 3.7%, at $147.45 on Friday, after trading as high as $154.69 and as low as $145.65. Volume was about 9.9 million shares, according to trade data.
The decline marked a third straight daily drop for ServiceNow and left the stock about 38% below its 52-week high, according to MarketWatch. The pullback came even as the S&P 500 rose 0.19% and the Dow gained 0.66%, while peers in enterprise software also fell, including Salesforce, which dropped 4.26%. 1
Why it matters now: investors began 2026 repositioning, with money flowing to “value” shares — companies seen as cheaper relative to profits — over high-growth tech. “Value is outperforming growth,” said Jed Ellerbroek, a portfolio manager at Argent Capital in St. Louis, as U.S. Treasury yields rose and markets looked ahead to a fresh run of economic data. 2
That rotation can weigh on subscription software stocks, which tend to trade on expectations of long-run growth. When bond yields rise, investors often demand more near-term profit to justify higher valuations.
ServiceNow sells software through subscriptions, a model often described as software-as-a-service, or SaaS — software delivered over the cloud for a recurring fee. The group has been sensitive to swings in risk appetite as investors debate how quickly customers will turn AI spending into measurable productivity gains.
Friday’s trading showed sellers active from the open, with the stock finishing near the lower end of its intraday range. The session also featured heavier-than-usual activity for ServiceNow, according to market data.
Investors have also been calibrating expectations after ServiceNow’s late-December agreement to buy cybersecurity firm Armis for about $7.75 billion in cash. ServiceNow said it expects the deal to close in the second half of 2026, subject to regulatory approvals and other conditions. 3
Separately, a December SEC filing detailed an amendment to CEO Bill McDermott’s employment agreement that took effect on Jan. 1, 2026, allowing him to serve as CEO or co-CEO, among other roles, at the board’s discretion and with his agreement. 4
For now, traders appear focused on whether the broader tech tape stabilizes after a choppy finish to 2025, and whether enterprise software can regain footing if rate expectations ease.
Before next session, investors are likely to key on U.S. labor-market data due Jan. 9, a release that can shift expectations for Federal Reserve policy and, by extension, valuations for growth stocks. 5
On the company calendar, the next quarterly report remains a near-term focal point. Nasdaq’s earnings page shows an algorithm-derived estimate for ServiceNow’s next report on Feb. 4, though such dates can change once the company confirms its schedule. 6
Technically, traders will be watching whether ServiceNow can hold above Friday’s $145.65 low and reclaim the $153 area, where it opened the session. A break below the week’s lows would keep pressure on the stock heading into the next round of data and earnings.
