NEW YORK, Jan 2, 2026, 19:15 ET — After-hours
- ServiceNow shares closed down 3.75% at $147.45, extending a three-day slide.
- The stock edged up 0.05% to $147.53 in after-hours trading, MarketWatch data showed.
- Wall Street started 2026 mixed, with chipmakers leading and investors turning to next week’s labor-market updates.
ServiceNow (NYSE: NOW) shares fell 3.75% on Friday to close at $147.45, underperforming a broader market that finished mostly higher in the first session of 2026.
The drop matters because investors began the year rotating into areas of the market showing the strongest momentum, with chip stocks rallying while several big tech names and some software shares struggled for traction.
Joe Mazzola, head of trading and derivatives strategy at Charles Schwab, said investors “might be a little bit more conscious about some of the valuations that they’re paying for some of the AI plays.” Reuters
In after-hours trading — the session after the 4 p.m. market close when stocks continue to trade electronically — MarketWatch showed ServiceNow up 0.05% at $147.53.
The stock traded between $145.64 and $153.20 during the session and posted its third straight daily decline, MarketWatch data showed. Trading volume was about 9.6 million shares, above its 50-day average of 8.6 million.
Other enterprise-software names were also under pressure. Salesforce fell 4.26% in the session, while Oracle rose 0.41%, according to MarketWatch.
The Dow ended up 0.66% and the S&P 500 gained 0.19%, while the Nasdaq slipped 0.03%, Reuters reported. Chipmakers helped lead the market higher, with the Philadelphia SE Semiconductor index up 4%.
Investors are now watching the Federal Reserve outlook and next week’s labor-market data for clues on interest rates, a key driver for high-growth technology valuations. Reuters also flagged potential tariff surprises as another early-year risk for markets.
For ServiceNow, the next catalyst is its upcoming quarterly report and the outlook it gives on subscription growth, the recurring revenue stream that drives most software-as-a-service companies. Analysts tracked by Zacks expect earnings per share — profit on a per-share basis — of $0.87 on revenue of $3.52 billion in the next release.
Valuation is also on traders’ radar. Zacks said ServiceNow was trading at about 38 times forward earnings, meaning the stock price relative to expected profits over the next year.
Technically, the shares finished near the lower end of their $135.73 to $239.62 52-week range. The stock remains about 38% below its 52-week high, MarketWatch data showed.
ServiceNow’s market value stood at about $159 billion, putting it among the largest enterprise-software companies in the U.S. With after-hours trading continuing and macro data approaching, investors are likely to stay focused on whether the stock can hold above recent lows while the market’s leadership remains concentrated in chip-related names.
