New York, July 1, 2026, 10:03 (EDT)
- ServiceNow, Inc. NYSE:NOW last traded up $3.53 at $102.81, up 3.6%. The gain put on about $3.7 billion in market value.
- Guggenheim upgraded the stock to Buy from Neutral, setting a $125 price target. That’s 21.6% over the last quote.
- NOW has dropped 35% since Guggenheim put out a neutral call in December. The software ETF was down 16% over the same period, while the S&P 500 gained 10%.
ServiceNow, Inc. NYSE:NOW traded higher Wednesday after Guggenheim’s John DiFucci upgraded the stock. Shares were last at $102.81, climbing 3.6%. The stock opened at $104.00 and hit $104.99 at the high. Volume reached 4.4 million shares as of 9:47 a.m. EDT.
The New York Stock Exchange was open for normal trading at the time. Regular hours are 9:30 a.m. to 4 p.m. ET. For 2026, the exchange has July 3, a Friday, marked as the Independence Day holiday, rather than July 1.
The move topped the rest of software, with the iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) up 2.0%. Major indexes traded down, with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) off 0.4% and the Invesco QQQ Trust NASDAQ:QQQ down 1.0%.
| Security | Last price | Move |
|---|---|---|
| ServiceNow, Inc. NYSE:NOW | $102.81 | up 3.6% |
| iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) | $92.45 | up 2.0% |
| SPDR S&P 500 ETF Trust (NYSEARCA:SPY) | $743.81 | down 0.4% |
| Invesco QQQ Trust NASDAQ:QQQ | $728.79 | off 1.0% |
The key here isn’t another AI boost for ServiceNow. The story is that a long-term skeptic has changed his mind. DiFucci said the recent selloff has gotten overdone, calling the current price “an attractive opportunity” to pick up a profitable company that can still grow at double digits, according to Investing.com. Investing.com
| Since Guggenheim bumped NOW from Sell to Neutral in Dec. 2025 | Change |
|---|---|
| ServiceNow, Inc. NYSE:NOW | -35% |
| iShares Expanded Tech-Software Sector ETF (NYSEARCA:IGV) | -16% |
| S&P 500 | +10% |
| NOW lag to IGV | -19 percentage points |
| NOW lag to S&P 500 | -45 percentage points |
The gap is key here since Guggenheim’s Wednesday upgrade is mainly about valuation. Their $125 target for ServiceNow is still under the Street’s median. According to WSJ, there are 41 Buys, five Overweights, three Holds and one Sell on the name. Median target sits at $135, average at $140.38.
| Valuation marker | Figure |
|---|---|
| Shares closed Tuesday | $99.28 |
| Guggenheim price target | $125.00 |
| Potential gain to target from Tuesday’s close | 25.9% |
| Potential gain to target from last trade | 21.6% |
| WSJ median price target | $135.00 |
| WSJ average price target | $140.38 |
DiFucci didn’t put ServiceNow in the AI winner group. MarketWatch said he called AI a “major threat” for software companies but stopped short of calling it a “death knell.” DiFucci also said he isn’t upgrading ServiceNow right now because he doesn’t see it as getting a big AI boost. He pointed to some expected improvement in U.S. government business following federal spending disruptions. MarketWatch
ServiceNow’s April figures leave room for bulls. Subscription revenue rose 22% to $3.671 billion in the first quarter. Current remaining performance obligations climbed 22.5% to $12.64 billion. The company said customers paying more than $1 million a year for Now Assist jumped over 130%. CEO Bill McDermott said the results “beat the high end of our guidance once again.” ServiceNow Investor Relations
The risk factor is still there. Back in April, Reuters said big government deals in the Middle East got delayed, cutting around 75 basis points from subscription revenue growth. The $7.75 billion Armis buy could also hit 2026 free cash flow margin by about 200 basis points. COO Amit Zavery told Reuters, “I am not worried about the narrative,” and pointed to new business coming in from usage-based billing instead of traditional user licenses. Reuters
Investors on Wednesday rewarded ServiceNow less for new AI sales proof, more for fading AI-related worries. The real test comes from operating numbers: Reuters reported ServiceNow’s Q2 subscription revenue outlook is $3.815 billion to $3.820 billion, topping the $3.75 billion LSEG consensus after Q1 results.
