New York, Feb 2, 2026, 11:55 ET — Regular session
- ServiceNow shares rose in late-morning trade after last week’s sharp software-sector selloff.
- A planned $2 billion accelerated buyback and AI roadmap remain key talking points.
- Investors are watching for clearer demand signals as earnings season rolls on.
ServiceNow Inc shares were up 3.7% at $121.33 on Monday, after swinging between $115.65 and $121.61 earlier in the session.
The move outpaced the iShares Expanded Tech-Software Sector ETF, which was up about 0.6%. Salesforce and Adobe also edged higher, while Microsoft was down.
ServiceNow has become a pressure point in the argument over whether generative AI will chip away at the subscription model that underpins software-as-a-service, or SaaS. “Pricing a worst-case scenario that software is dead because AI is disrupting the space,” Adam Turnquist of LPL Financial said in a note during last week’s slide. (Reuters)
The Santa Clara, California-based company last week reported fourth-quarter subscription revenue of $3.466 billion and total revenue of $3.568 billion. It also said its board approved an additional $5 billion for share repurchases, including an “imminent” $2 billion accelerated share repurchase — a buyback executed quickly, typically through a bank. Bill McDermott said ServiceNow “significantly beat Q4 expectations, accelerated net new business,” while Gina Mastantuono called it “another strong quarter, concluding a remarkable year of AI innovation.” (ServiceNow Newsroom)
In a separate report on Jan. 28, ServiceNow forecast fiscal 2026 subscription revenue of $15.53 billion to $15.57 billion, above LSEG estimates, and pointed to deeper AI ties with Anthropic and OpenAI. Rebecca Wettemann of Valoir said the company was “growing both organically and by acquisition,” after moves that include planned deals for Armis and Veza and the recently closed Moveworks purchase. Subscription revenue is the recurring fee customers pay for access to the software. (Reuters)
The wider market was unsteady, with investors juggling a busy earnings calendar and fresh U.S. labor-market data, while a sharp drop in gold and silver rippled through risk sentiment. (Reuters)
Still, Monday’s bounce does not wipe away the debate over valuations and deal strategy. Analysts have warned that integration work and acquisition costs can blur underlying growth, even when headline results beat expectations. (Barron’s)
For traders, the next tell is whether the rally holds once the buyback starts to show up in the tape, and whether pricing and renewals stay firm in coming weeks. A stumble there would likely bring the “AI disruption” question straight back onto the screen.
The next big public stage is ServiceNow’s Knowledge conference in Las Vegas on May 5-7, when investors will scan for product updates and customer demand signals. (ServiceNow)
