New York, Jan 21, 2026, 19:19 EST — After-hours
- After slipping earlier in the regular session, shares climbed roughly 0.5% in late after-hours trading
- Oppenheimer lowered its price target to $175, citing worries over ServiceNow’s recent acquisitions
- Investors are focused on the Jan. 28 results for updates on AI rollout, cash flow, and how well acquisitions are being integrated
Shares of ServiceNow edged up roughly 0.5% to $125.92 in after-hours trading Wednesday, despite Oppenheimer lowering its price target. The firm flagged concerns that an acquisition push slated for late 2025 might pressure the company’s valuation.
Shares of ServiceNow dropped 1.5% during Tuesday’s regular session, marking a fifth straight day of losses. The stock now sits almost 48% below its 52-week peak, according to MarketWatch data.
Next week’s results carry more weight because of that weakness. Investors are eager to find out if the latest AI products will boost demand without hurting free cash flow—the cash remaining after expenses and investments.
ServiceNow’s shares slipped 0.08% to $125.30 during Wednesday’s regular session, hitting a low of $123.78 earlier in the day. After-hours trading saw the stock edge up slightly to $125.92 following the 4 p.m. ET close.
Oppenheimer’s Brian Schwartz cut his price target on ServiceNow (NOW) to $175 from $200 but maintained an Outperform rating. He noted, “NOW is not a cheap stock and investors tend to lower multiples for software companies that embark on an M&A spree.” StreetInsider.com
Valuation multiples reflect what investors pay compared to profits or cash flow. Schwartz noted that before betting on quicker growth, investors need to see deal synergies materialize in upcoming reports.
ServiceNow and OpenAI announced on Tuesday a multi-year deal that broadens customer access to OpenAI’s latest models, including GPT-5.2, integrated directly into ServiceNow workflows. Brad Lightcap, OpenAI’s Chief Operating Officer, described the aim as developing “agentic AI” — AI that performs actions within systems instead of merely responding to queries. OpenAI
The company is pushing to expand its reach through partners. At its Partner Kickoff event in Las Vegas, ServiceNow unveiled a revamped Build Program, aiming to have over 1,000 partners transition by March. This is part of a global network now exceeding 2,700 partners. The firm also announced a shift to a single annual membership fee for partners. “We’re making it easier than ever for partners to create differentiated AI-powered solutions,” said Michael Park, senior vice president of global partnerships and channels. Business Wire
Competition to integrate AI agents into enterprise software is heating up, as Salesforce, SAP, and Workday all roll out comparable capabilities. The partnership between OpenAI and ServiceNow marks another step in OpenAI’s drive to embed its models into business workflows, where providers are fiercely vying for distribution.
The stock’s trajectory now depends on execution. Investors want proof that the acquisition won’t hurt cash flow and that AI features will drive steady subscription growth—not just one-off pilot projects.
ServiceNow is set to release its fourth-quarter and full-year 2025 earnings after the market closes on Jan. 28, followed by a 2 p.m. Pacific conference call. Investors will be watching closely for insights on AI demand, deal integration progress, and free cash flow.
