ServiceNow stock drops nearly 3% as security flaw headlines linger ahead of Jan. 28 earnings

ServiceNow stock drops nearly 3% as security flaw headlines linger ahead of Jan. 28 earnings

New York, Jan 16, 2026, 18:18 EST — Trading after the bell.

  • ServiceNow shares dropped 2.94% to $127.31, marking another day of declines for the software company this week.
  • Enterprise software peers dipped while U.S. stocks finished mostly flat ahead of the Martin Luther King Jr. Day market shutdown.
  • Investors are tracking developments on a newly revealed AI vulnerability and are also eyeing ServiceNow’s earnings report set for Jan. 28.

Shares of ServiceNow, Inc. dropped 2.9% on Friday, closing near $127.31 in after-hours trading. During the day, the stock swung between $126.88 and $132.21, with roughly 19.9 million shares changing hands.

The stock now trades roughly 47% below its 52-week peak, ramping up pressure ahead of the long weekend when thin liquidity often amplifies market moves. (MarketWatch)

ServiceNow grabbed attention recently when researchers flagged a critical software flaw linked to its AI tools. It’s a sharp reminder that security issues can emerge fast in enterprise software.

U.S. stocks closed virtually unchanged on Friday during a volatile session before the holiday. The S&P 500 slipped 0.06%, the Nasdaq also lost 0.06%, and the Dow dropped 0.17%. “Most investors will take that as a win,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial. (Reuters)

ServiceNow stumbled, mirroring dips across software stocks—Salesforce fell around 2.8%, Workday dropped close to 3.0%, and Atlassian slid roughly 7.7%.

Security firm AppOmni revealed a flaw called “BodySnatcher,” tracked as CVE-2025-12420, that allows attackers to impersonate users and manipulate AI-agent actions. Aaron Costello, AppOmni’s chief of security research, called it “the most severe AI-driven vulnerability uncovered to date.” (SecurityBrief Australia)

ServiceNow responded to the vulnerability by rolling out a security update across most hosted instances and issuing patches to partners and self-hosted customers, according to a TechRadar report referencing the company’s advisory. The firm stated there is no indication the flaw has been exploited. (TechRadar)

Partner moves kept coming quietly. Biometric security company authID rolled out an integration with ServiceNow aimed at identity verification in contact centers. CEO Rhon Daguro said the partnership boosts confidence for companies before processing account changes. (GlobeNewswire)

ServiceNow plans to release its fourth-quarter and full-year 2025 earnings after the market closes on Wednesday, Jan. 28. The company will host a conference call at 2 p.m. Pacific time. (ServiceNow Newsroom)

The road ahead looks complicated. Should customers with self-hosted setups delay applying patches, or if new vulnerabilities come to light, the stock might remain pressured despite a steadier market. Weaker demand signals in earnings could weigh even more heavily.

After Monday’s market holiday, trading picks up again Tuesday. Investors will be eyeing ServiceNow’s results and outlook due Jan. 28 as their next major checkpoint.

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