New York, Jan 27, 2026, 21:15 EST — The market has closed.
- Shares of ServiceNow dipped on Tuesday as investors braced for the upcoming quarterly earnings report.
- The enterprise workflow software maker is set to report after Wednesday’s close, followed by a conference call later that day.
- Traders zero in on subscription growth, contract backlog, and any changes to full-year guidance.
ServiceNow (NYSE:NOW) shares slipped 3.33% on Tuesday, closing at $131.80. The stock hit an intraday low of $130.86 as selling pressure increased toward the end of the day. 1
The decline hits ahead of the company’s Q4 and full-year 2025 earnings report, scheduled for release after Wednesday’s market close. A conference call is set for 5 p.m. ET. 2
The timing is crucial since the market’s focus is locked on two key events: the Federal Reserve’s upcoming decision and a wave of major tech earnings that could jolt sentiment around software stocks. On Tuesday, the S&P 500 hit yet another record high as the Fed began its two-day policy meeting. 3
Analysts expect revenue to hit around $3.53 billion, marking a roughly 19% rise from the same quarter last year, with adjusted earnings near 89 cents per share, according to an earnings preview released late Monday. The preview also noted that ServiceNow topped revenue forecasts last quarter but fell short on “billings”—a key metric investors use to gauge new business booked during the period. 4
Some on the Street believe a rebound could be in play if management beats modest expectations. David Wagner of Aptus Capital Advisors highlighted ServiceNow’s push into customer-service management. Jefferies analyst Samad Samana suggested that a forecast of 19% organic growth might ignite “real enthusiasm” among buy-side investors. 5
ServiceNow usually moves in step with other big enterprise software players like Salesforce, Microsoft, Adobe, and Workday. Updates on forecasts or deal rumors tend to send waves through the whole group. 6
M&A remains in focus. ServiceNow announced in late December its plan to acquire cybersecurity company Armis for roughly $7.75 billion in cash. The deal will be financed through existing cash reserves and debt, with a closing expected in the second half of 2026. 7
That said, the risks run both ways. A cautious take on subscription growth or another slip in billings or contracted backlog might weigh on the shares, especially in a market quick to punish software companies for the slightest shortfall.
Investors are turning to Wednesday’s results and the conference call for a clear update on full-year subscription trends, demand for the latest AI-driven offerings, and new insights into how the Armis acquisition will impact spending and margins.
