New York, January 17, 2026, 06:05 EST — The market has closed.
- ServiceNow shares dropped 2.94% on Friday, marking their fourth straight day of losses
- U.S. markets are closed Monday in observance of Martin Luther King Jr. Day; trading picks back up Tuesday
- All eyes on ServiceNow’s earnings due January 28, alongside the rate decision that week
Shares of ServiceNow Inc dropped 2.94% on Friday, closing at $127.31 and extending their losing streak to four sessions. The enterprise software maker’s stock underperformed Salesforce, whereas Oracle and Synopsys saw gains. Trading volume surged well above its recent average.
The decline is significant given that the next U.S. cash session won’t open until Tuesday, as markets shut Monday for Martin Luther King Jr. Day. That break leaves investors holding onto a softening large-cap software sector right as the calendar tightens later this month.
ServiceNow is frequently seen as a barometer for hefty IT budgets—those greenlit in boardrooms but vulnerable to cuts when caution sets in. Stocks like these also move with changes in interest rate forecasts, since rising rates reduce the present value of future earnings.
The broader market closed almost unchanged on Friday ahead of the long weekend, with the week wrapping up in the red as quarterly earnings season kicked off, Reuters reported. “Historically the middle part of January tends to be pretty choppy,” said Bruce Zaro, managing director at Granite Wealth Management. Next week, heavyweights like Netflix, Johnson & Johnson, and Intel are set to report. Reuters
ServiceNow marked Jan. 28 as its key date, planning to release fourth-quarter and full-year results after market close, with a conference call set for 2 p.m. Pacific Time. Investors will be watching closely for insights on demand, large deals, and subscription trends—comments that could steer the stock’s direction into February.
Rate bets are shifting. Federal Reserve Vice Chair Philip Jefferson said he favors holding borrowing costs steady at the Fed’s Jan. 27-28 meeting, describing the current policy stance as “well positioned,” Reuters reported. Reuters
authID announced a new integration with ServiceNow designed to boost identity verification in contact centers, which are often vulnerable to fraud. “Digital identity verification at the contact center accelerates business transformation,” said Rhon Daguro, authID’s CEO, according to an Investing.com report.
None of that shifts the short-term picture: ServiceNow’s next move will probably depend on its update regarding customer budgets and renewal speeds. If it offers a cautious outlook—or even just signals uncertainty—software stocks could take a sharp hit given the current fragile sentiment.
Tuesday’s reopen will put the market to its first real test, particularly if investors continue shifting focus from software to other tech sectors. Keep an eye on whether ServiceNow can hold its ground early or if selling pressure picks up again as the holiday-shortened week kicks off.
ServiceNow is set to report earnings after the market closes on Jan. 28, the very day the Federal Reserve wraps up its policy meeting. This pairing could spark a volatile session for NOW and other software stocks midweek.
Related articles: NYSE:NOW
