New York, Jan 12, 2026, 13:22 EST — Regular session
- ServiceNow shares edged up roughly 0.2% in afternoon trading, hovering around $142 following last week’s drop.
- Goldman Sachs has kicked off coverage with a Buy rating and set a $205 price target, per Investing.com.
- All eyes are on the company’s Jan. 28 earnings report for clues about 2026 growth and demand.
ServiceNow shares ticked up on Monday following Goldman Sachs’ initiation of coverage, providing a rare lift after the stock dropped for two days straight last week. The shares last traded around $142.06, up about 0.2%.
This matters as the workflow software company has been hovering near the low end of its recent trading range, making investors uneasy about the next move. A fresh, high-profile analyst call could shape sentiment heading into earnings, particularly for a stock that’s lagged behind the wider tech rally.
ServiceNow will release its fourth-quarter and full-year 2025 results after the market closes on Jan. 28. The company also plans to hold a conference call that same afternoon, it announced last week.
Goldman kicked off coverage with a Buy rating and set a $205 price target, according to an Investing.com report quoting analyst Gabriela Borges. The firm projects ServiceNow will maintain roughly 20% organic compound annual growth through 2029, driven by its push into adjacent software markets.
Goldman Sachs labeled 2026 the “decade of agentic workflow” in a fresh sector note, naming ServiceNow among its Buy-rated stocks alongside Microsoft and Oracle. Adobe and Datadog, however, landed on its Sell list. Borges expressed a “constructive” view on AI adoption as a strong tailwind but warned that annual “datapoints may be uneven.” Investing.com Nigeria
Investors are set to scrutinize the upcoming earnings report to see if the AI hype is actually converting into bookings and renewals, rather than just more product demos. Subscription revenue and current remaining performance obligations, or cRPO—a backlog-like metric of contracted but unrecognized revenue—will also be key gauges of demand stretching into early 2026.
ServiceNow slipped 3% to $141.80 on Friday, marking its second day in a row of losses, despite gains in the wider market, MarketWatch data revealed. The stock also fell behind certain enterprise software rivals, notably Salesforce, on that day.
But the near-term picture looks messy. On Friday, Stifel lowered its price target to $200, though it maintained a Buy rating. The firm flagged concerns that ServiceNow’s U.S. federal business might stay flat year-over-year, and noted that shorter federal contract lengths could weigh on first-quarter cRPO growth.
Uncertainty cuts deep here since management’s take on federal demand can quickly shift expectations. Washington’s spending patterns are notoriously uneven. If there’s any hint that big contracts are slipping or terms are getting tougher, the stock would probably take another hit.
Traders are now focused on Jan. 28. That’s when the company will release its numbers and provide an early 2026 outlook. Investors will also be listening closely to management’s take on how customers are paying for AI features — whether as add-ons, bundled, or usage-based — as budgets get reshuffled.
