Strong earnings and AI partnerships fail to impress

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Servicenow slides 7.08% to $109.65 today

Highlights

ServiceNow reported Q4 2025 revenue of $3.57 billion and adjusted EPS of $0.92, exceeding forecasts and surpassing $10 billion in annual revenue for the first time.
Expansion of AI-enabled Now Assist, strategic collaborations with Anthropic and Microsoft, and a $9.5 billion share repurchase program underscore aggressive growth and capital return initiatives.
NOW shares trade at $109.65, well below MA-20 ($133.55), with a strong bearish trend, oversold momentum, and downside risk toward $106.00.

AI adoption and buybacks boost sentiment after record results

ServiceNow reported strong fourth-quarter 2025 results, with total revenue rising to $3.57 billion and subscription revenue reaching $3.47 billion. Adjusted EPS of $0.92 exceeded forecasts, and annual revenue surpassed $10 billion for the first time, supported by increased adoption of the AI-enabled Now Assist platform. The company expanded AI partnerships, notably with Anthropic and Microsoft, and approved a $9.5 billion share repurchase program alongside a $2 billion accelerated buyback. ServiceNow also set new subscription revenue guidance and highlighted strategic acquisitions such as Moveworks, Armis, and Veza.

Persistent oversold readings and gap down fuel downward pressure

Momentum signals remain firmly negative, with strong bearish readings from both the MACD and ADX on the daily timeframe. RSI, Stochastic RSI, and CCI all indicate oversold conditions, suggesting an intensified sell-off, while Bull/Bear Power points to clear seller dominance. The Awesome Oscillator also supports the downward trend. After opening at $115.02 — below the prior close of $118.00, confirming a clear gap down — NOW has continued to move lower and is currently at the bottom of today’s range ($109.62 — $115.02), reflecting high intraday volatility and sustained downside pressure from the open.

Limited rebound prospects as oversold signals favor further decline

For the coming week, the expected price range is $106.00 to $112.00, adjusted to reflect current levels and observed volatility. The probability of a price increase is very low (less than 20%), making further declines more likely. The baseline scenario is for NOW to consolidate sideways between $106.00 and $112.00. In a bullish scenario, a rebound above $112.00 would test resistance near $115.00, but this outcome is not supported by current momentum signals, while further declines below $106.00 remain the favored scenario given persistent oversold conditions.

Viktoras Karapetjanc, expert at Traders Union, sees ServiceNow maintaining robust fundamentals despite its current bearish momentum. He notes that AI-driven expansion and record revenue growth signal strong institutional adoption and strategic direction. The negative sentiment and technical weakness still dominate in the short term, limiting the probability of a near-term rebound. Karapetjanc believes tactical patience is needed but retains a positive long-term outlook. "Strong fundamentals support my constructive view — I would monitor for reversal cues, as the setup favors recovery when sentiment turns."

Last time, analysts noted that ServiceNow Inc. continues to exhibit bearish momentum, trading well below its major moving averages and encountering sustained downward pressure across technical indicators. Key resistance remains at the $134–$135 level, with negative momentum and oversold conditions suggesting the potential for 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

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.