ServiceNow, Inc. stock fell more than 3% on Thursday, underperforming a broader market rally as investors took profits after a recent rebound and reassessed the stock’s longer-term technical outlook. The decline occurred despite the Nasdaq gaining 2.48% and the S&P 500 advancing 1.22%. The technology sector led gains across major sectors, yet ServiceNow moved sharply lower, indicating stock-specific selling rather than broader market weakness.

Technical Analysis

ServiceNow shares traded at $102.71, leaving the stock about 4% below its 20-day simple moving average of $107.93 and roughly 2.4% below its 100-day average of $106.14. These levels suggest the stock is still struggling to regain intermediate-term momentum. However, the shares remain about 4.2% above the 50-day moving average of $99.44, indicating the latest pullback follows a recent recovery attempt rather than a fresh breakdown.

The relative strength index stood at 49.08, a neutral reading that suggests momentum is neither overbought nor oversold. The longer-term trend remains a concern for bulls, as the 50-day moving average remains below the 200-day moving average, a bearish “death cross” that formed in August 2025. Key resistance sits near $111, while support is around $85.50, just above the stock’s 52-week low area of $81.24.

Strategic Partnership Expansion

Separately, International Business Machines Corp. and ServiceNow expanded their partnership on Thursday to help enterprises modernize legacy systems, improve data readiness, and deploy AI at scale. The collaboration combines IBM’s AI, data, and automation tools with the ServiceNow AI Platform, focusing on application modernization, enterprise data governance, and autonomous IT operations. The companies said the joint solutions will help customers unlock enterprise data, automate workflows, and support agentic AI adoption. The offerings are expected to be available in the second half of 2026.

Earnings and Analyst Outlook

The company’s next earnings report is expected on July 22, 2026. Analysts expect earnings of 76 cents per share, compared with 82 cents a year earlier. Revenue is projected to rise to $3.93 billion from $3.21 billion in the prior-year period. ServiceNow trades at about 63.1 times earnings, reflecting a premium valuation relative to many software peers.

Wall Street maintains a Buy consensus rating on the stock, with an average price forecast of $139 based on 50 analyst ratings. Recent analyst actions include:

ServiceNow Inc shares traded higher on Wednesday, outperforming the broader market as investors focused on resilient demand and artificial intelligence monetization potential. The stock gained about 2% while the Nasdaq Composite fell 1.3% and the S&P 500 declined 0.9%. This relative strength highlights investor confidence in the company's ability to navigate macroeconomic headwinds, even as the Technology Select Sector SPDR Fund (XLK) traded lower.

BNP Paribas analyst Stefan Slowinski said ServiceNow remains on a path toward more than $30 billion in subscription revenue by fiscal 2030. This target is supported by resilient demand, AI monetization, and growth across newer product areas. Slowinski noted that the company has not seen major macro-related demand pressure beyond on-premise deal slippage flagged in the first quarter in the Middle East. He added that at least one delayed deal closed early in the second quarter, and the company expects all delayed deals to close this year.

Technical Levels and Trend Analysis

ServiceNow's gains appear driven by technical resilience, with the stock holding above several key moving averages. Shares remain above the 20-day simple moving average of $107.08, the 50-day SMA of $99.42, and the 100-day SMA of $106.40. However, the longer-term picture remains mixed, as the stock trades 22.2% below its 200-day SMA of $139.52. A "death cross" that formed in August 2025 continues to act as a technical overhang.

Momentum indicators suggest consolidation rather than a breakout. The relative strength index sits at 50.06, a neutral reading. The next resistance level sits near $111, while support around $98 remains critical.

AI Products Support Long-Term Targets

The 2026 Financial Analyst Day targets call for subscription revenue of more than $30 billion in the base case and about $32 billion in the bull case by fiscal 2030. This outlook assumes slower growth in mature businesses such as core ITSM and ITOM, offset by faster growth in AI Control Tower/Data Analytics, Security & Risk, and CRM/front office. ServiceNow sees each of those newer areas potentially growing at compound annual growth rates of more than 25%.

Slowinski said customers are moving from broad AI experimentation toward tools that help monitor usage and manage risk. ServiceNow's new Foundation, Advanced, and Prime packaging now includes AI at every level. The company expects a 20% to 30% price uplift on base seat pricing when customers adopt AI features. ServiceNow remains confident it can monetize AI while keeping gross margins above 80% through fiscal 2030.

M&A will support results, with Armis contributing 125 basis points and Moveworks adding 100 basis points to both subscription revenue growth and cRPO growth in the second quarter and fiscal 2026. Wall Street maintains a Buy consensus rating on the stock, with an average price forecast of $139 based on 50 analyst ratings.