Here’s why ServiceNow is sliding

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Servicenow slides 5.95% today

Highlights

ServiceNow reported robust Q4 2025 results with total revenue up 20.7% year-over-year to $3.57 billion, surpassing $10 billion annual revenue for the first time.
The company deepened its strategic AI footprint by integrating Anthropic's Claude models and strengthening its partnership with Microsoft for enterprise AI solutions.
NOW trades at $110.98, well below MA-20 ($133.55), MA-50 ($150.06), and MA-200 ($178.64), with bearish momentum and oversold RSI signaling continued downside risk.

Record revenue milestone and AI expansion drive positive sentiment

ServiceNow reported strong fourth quarter 2025 financial results, with total revenue rising 20.7% year-over-year to $3.57 billion and subscription revenue climbing 21% to $3.47 billion. The company surpassed $10 billion in annual revenue for the first time and expanded its strategic AI partnerships, integrating Anthropic's Claude models and enhancing collaboration with Microsoft for enterprise AI. ServiceNow also increased its share repurchase authorization to $9.5 billion, underscoring its focus on organic growth and innovation-driven acquisitions.

Anton Kharitonov, expert at Traders Union, notes a sharp decline as ServiceNow trades far below its key moving averages. He finds the downward momentum reinforced by technicals and sees the oversold condition persisting, despite strong quarterly figures and AI-focused partnerships. Kharitonov highlights the lack of meaningful buy signals and suspects recent news may not offset technical headwinds. He warns that the current structure favors further downside unless a clear reversal above $134.41 occurs. "Given this setup, traders should remain defensive and avoid premature long entries until technical confirmation emerges," he says.

Viktoras Karapetjanc, expert at Traders Union, views ServiceNow’s strong revenue growth and expansion into enterprise AI as a powerful foundation for the stock’s long-term performance. He points to the company’s record annual revenue and AI partnerships as evidence of continued innovation and market leadership. Karapetjanc remains confident that the bullish structure remains intact despite the recent volatility. "Further growth is expected as ServiceNow leverages innovation to capture new demand in the digital enterprise market," he asserts.

Jainam Mehta, market strategist, observes that ServiceNow is oversold relative to both short- and long-term moving averages. He sees a tactical opportunity if the price rebounds above $134.41, but cautions that failure to hold recent lows could accelerate further selling. "A potential breakout above resistance may signal a shift, but traders should wait for confirmation before acting," he advises.

Bearish outlook as price falls below all major technical levels

The current price of NOW at $110.98 is trading well below the MA-20 ($133.55), MA-50 ($150.06), and MA-200 ($178.64), indicating sustained downward pressure across short-, medium-, and long-term trends. The nearest dynamic resistance is at the Ichimoku Kijun level of $134.41, while the price is currently below all major moving averages, confirming ongoing bearish sentiment.

Previously it was reported that ServiceNow, Inc. trades markedly below its key moving averages, with negative momentum across major indicators such as MACD, ADX, and deeply oversold RSI, underscoring pronounced bearish pressure despite recent session firmness. Key resistance remains at $134.61, and with momentum and oscillators reinforcing downside risk, the outlook favors continued consolidation or further declines unless a decisive breakout occurs.

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

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