New York, January 23, 2026, 11:17 ET — Regular session
- ServiceNow shares climbed roughly 3% in late-morning trading, rebounding after Thursday’s bounce ended a string of losses
- Cantor Fitzgerald and Jefferies lowered their price targets but maintained positive ratings
- Investors are eyeing next week’s earnings and guidance for signs of demand and AI-driven spending
ServiceNow shares climbed roughly 3.4% on Friday, defying the cautious mood in U.S. stocks ahead of next week’s earnings. The stock last traded up 4.32 points at $132.88, moving within a range of $128.29 to $132.91.
This matters as ServiceNow approaches earnings with its stock still struggling to find footing after a tough run. Traders are also eyeing if software valuations can withstand a wave of target cuts hitting the sector.
Markets jittered after Intel dropped on a disappointing forecast, while investors eyed the Federal Reserve and a packed earnings calendar. “Guidance now is more critical than ever,” noted Peter Cardillo, chief market economist at Spartan Capital Securities. (Reuters)
Cantor Fitzgerald cut its price target on ServiceNow to $200 from $240 on Friday, while maintaining an “Overweight” rating. The firm cited “multiple compression” — with investors valuing software stocks less per dollar of sales — as a key factor. ServiceNow’s shares have dropped about 16% year-to-date, compared to the S&P 500’s modest 1% gain. (Investing)
Jefferies analyst Samad Samana lowered his price target to $175 from $230 but kept a Buy rating, per GuruFocus. Citi and Mizuho have also recently trimmed their targets, according to the same source. (GuruFocus)
ServiceNow climbed 2.6% Thursday to close at $128.56, ending a six-day skid. Still, it trailed several enterprise-software rivals that outpaced it on the session, according to MarketWatch data. Trading volume exceeded the stock’s recent norm. (MarketWatch)
ServiceNow is stepping up its AI game with fresh partnerships to keep its product narrative alive. On Jan. 20, ServiceNow and OpenAI announced an expansion of their strategic collaboration to embed OpenAI models into ServiceNow workflows. Amit Zavery of ServiceNow described the effort as “building the future of AI experiences,” while OpenAI COO Brad Lightcap emphasized the goal of delivering agentic AI to enterprise workspaces that’s both “secure” and “scalable.” (ServiceNow Newsroom)
Investors are shifting focus from catchy slogans to hard data. They want to see subscription growth, hear management’s outlook on renewals, and determine if AI features are driving new demand or simply being packaged into current contracts.
The risk is well-known for richly valued software stocks: a cautious forecast can quickly backfire. If customers delay approvals or drag out renewal periods, what looks like a brief bounce could swiftly turn into a renewed downturn.
ServiceNow will release its fourth-quarter and full-year earnings after the market closes on Wednesday, January 28, followed by a conference call the same day. (ServiceNow Newsroom)
