NEW YORK, Jan 23, 2026, 18:47 EST — After-hours trading
- ServiceNow shares ended the day up 3.54% at $133.11, with after-hours trading holding steady.
- Cantor Fitzgerald lowered its price target, pointing to “multiple compression” hitting the software sector
- Jan. 28 brings earnings reports and a Fed decision, setting up volatility for high-valued tech stocks
ServiceNow shares rose 3.54% on Friday, finishing at $133.11. The stock fluctuated between $128.29 and $133.82 during the day and saw minimal movement in after-hours trading.
ServiceNow is set to release its fourth-quarter and full-year 2025 earnings after the market closes on Wednesday, Jan. 28. A conference call will follow at 2 p.m. Pacific.
At 2 p.m. Eastern, the U.S. Federal Reserve will release its policy update, with Chair Jerome Powell holding a press conference at 2:30 p.m. That schedule is especially crucial for software stocks sensitive to interest rates.
Cantor Fitzgerald lowered its price target on ServiceNow to $200 from $240 on Friday but kept its Overweight rating. The firm pointed to falling valuation “multiples” across the software sector—meaning investors are paying less per dollar of earnings or sales. The broker also highlighted concerns over recent acquisitions and noted that federal business accounts for roughly 10% of ServiceNow’s sales, while the stock still trades at a high earnings multiple. Investing.com
Since its Jan. 20 announcement, ServiceNow’s AI strategy has remained front and center. The company unveiled a multi-year partnership with OpenAI to develop “agentic AI” tools—software designed to perform actions within workflows, not just respond to queries. “ServiceNow leads the market in AI-powered workflows,” said President and COO Amit Zavery. OpenAI COO Brad Lightcap added the collaboration focuses on embedding “agentic AI into workflows” tailored for enterprise applications. ServiceNow Newsroom
Friday’s trading was nervous. The Dow dropped 0.58%, the S&P 500 held steady, and the Nasdaq climbed 0.28%. Intel weighed on the market after offering a gloomy outlook. Investors are bracing for a packed week of major tech earnings. “Going into results, we’re going to be in a ‘show-me’ period,” said Julian McManus, portfolio manager at Janus Henderson. Reuters
Salesforce held steady among enterprise-software stocks, while Oracle dipped 0.57%. ServiceNow stood out as a relative winner in the sector.
Next week, investors are looking for one thing: clear demand signals, signs of changes in deal cycles, and guidance confirming customers remain locked into multi-year projects. Others will focus on remaining performance obligations—contracted work yet to show up on the income statement—for hints on backlog strength and renewal traction.
That said, the setup isn’t one-sided. Should ServiceNow’s guidance disappoint or if investors push software valuations lower, Friday’s rally could vanish quickly. Next week’s interest rate decisions might amplify that downside risk.
ServiceNow is set to report after the close on Jan. 28, with its earnings call scheduled for 2 p.m. Pacific. Earlier that day in Washington, the Fed will release its policy statement and Powell will speak, a combo that could spark big moves in tech stocks.
