ServiceNow stock: Upbeat results and acquisitions fuel 3.2% gain despite technical weakness

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ServiceNow rises 3.20% to $120.76

Highlights

ServiceNow's Q4 2025 revenue reached $3.57 billion with adjusted EPS of $0.92, beating expectations and supported by AI partnership expansions with Anthropic and OpenAI.
Fiscal 2026 subscription revenue is guided to $15.53–$15.57 billion, and share repurchase authorization was raised to $9.5 billion alongside Moveworks and Armis acquisitions to bolster cybersecurity.
NOW trades at $120.76, well below key moving averages (MA-20 at $135.03, MA-50 at $150.98, MA-200 at $178.86), with technicals signaling pronounced downside pressure and a bearish outlook.

AI partnerships and acquisitions boost outlook as investor caution persists

ServiceNow reported fourth-quarter 2025 results in late January 2026, with revenue of $3.57 billion and adjusted earnings per share of $0.92 that beat expectations. The company expanded its artificial intelligence business by deepening partnerships with Anthropic and OpenAI, and issued fiscal 2026 subscription revenue guidance between $15.53 billion and $15.57 billion. Management increased share repurchase authorization to $9.5 billion and announced the acquisitions of Moveworks for about $3 billion and the planned $7.75 billion deal for Armis to strengthen its cybersecurity strategy. Despite these achievements, some investors remain cautious about the long-term returns of heavy sector-wide AI investment.

Widespread technical weakness as oversold momentum amplifies downside risk

NOW is trading well below key moving averages — MA-20 at $135.03, MA-50 at $150.98, and MA-200 at $178.86 — which confirms downward pressure over short, medium, and long horizons. The Ichimoku Kijun level at $134.61 acts as dynamic resistance. Momentum remains negative on the daily chart, with MACD and ADX both indicating further downside risk and no bullish reversal signs. RSI stands deep in oversold territory at 25.34, alongside a deeply oversold CCI, while the Bull/Bear Power indicator shows continued seller dominance. The Awesome Oscillator also supports the prevailing bearish trend. Stochastic RSI signals oversold conditions on higher timeframes, and although the stock opened with a moderate gap higher and trades close to session highs, the negative momentum and oscillator readings underline divergence between short-term firmness and the broader downtrend.

Limited rebound probability as indicators project sideways or lower action

In the short term, the expected trading range for NOW is $116 – $125, reflecting typical volatility relative to current levels. Probability of a meaningful upward move remains under 20%, as nearly all weekly momentum and trend indicators point to persistent weakness. Sideways consolidation within a narrow band is the baseline scenario; a bullish case would require a confident move above $134.61 (Ichimoku Kijun), while a drop below $116 could trigger further declines.

Viktoras Karapetjanc, analyst at Traders Union, sees current pessimism in ServiceNow’s price driven mainly by technical pressure, despite the company’s strong Q4 results and ambitious AI expansion. He notes that institutional moves such as share buybacks and large acquisitions reflect management’s confidence and provide a constructive backdrop. Karapetjanc rates the odds of a bullish reversal in the near term as low, but highlights that sentiment could shift quickly if key resistance is reclaimed. "ServiceNow remains fundamentally strong, and once market sentiment shifts, the stock could surprise to the upside if it breaks above $134.61."

Previously it was reported that ServiceNow, Inc. continues to trade firmly below key weekly moving averages, with strong bearish momentum confirmed by deeply oversold RSI and multiple aligned technical indicators. Despite positive earnings and expanded AI initiatives, the price remains pressured with dynamic resistance near $134.61 and further downside risk likely, as technical signals favor sellers in the upcoming week.

Source of Data: NOW Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.