ServiceNow stock: Stellar earnings and partnerships trigger a 3.75% rise despite persistent selling pressure

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Servicenow jumps 3.75% to $107.76 today

Highlights

ServiceNow surpassed $10 billion in annual revenue with Q4 sales growing 20% year-over-year and achieved a 98% retention rate.
The company announced a $5 billion share buyback, following a prior $2 billion repurchase, and generated $600 million in AI-related annual contract value.
NOW trades at $107.76, well below MA-20/50/200, with negative momentum and likely to oscillate between $102–$112; short-term upside probability is below 20%.

AI expansion and buyback strategy drive robust financial momentum

ServiceNow reported strong financial results, surpassing $10 billion in annual revenue with a 20% year-over-year increase in Q4 sales and a 98% retention rate. The company authorized a $5 billion share buyback following a prior $2 billion accelerated repurchase, while maintaining a robust Q4 free cash flow margin of 57%. ServiceNow is expanding its AI capabilities through partnerships with Anthropic and OpenAI and integrating Claude AI models, resulting in substantial productivity gains and $600 million in annual contract value from AI-related projects.

Deep oversold levels challenged by volatility amid strong downtrend

NOW is trading well below all major moving averages, with the nearest resistance marked by the daily Ichimoku Kijun at $125.95 and no immediate support below. Momentum remains negative as the daily MACD is at -14.95, and the strong ADX (40.24) highlights a prevailing downtrend. Deeply oversold conditions are signaled by the RSI (24.91), Commodity Channel Index (-132.99), and Bull/Bear Power (-11.43), although a strong buy flag from the Stochastic RSI points to possible short-term mean reversion. The Awesome Oscillator supports the bearish outlook, but today's gap up and trading near highs underscore intraday volatility and buyers' short-term interest.

Downside favored as volatility bands restrict near-term upside

For the next five trading days, NOW is likely to oscillate in a typical volatility band between $102 and $112. The probability of a short-term price increase remains under 20%, favoring further downside risk. If resistance at $112 is breached, a push to $115 is possible, while a close below $102 could accelerate losses toward $99 given ongoing bearish signals across multiple timeframes.

Anton Kharitonov, expert at Traders Union, sees ServiceNow's strong fundamentals as overshadowed by persistent technical weakness and heavy selling pressure. He notes that the stock remains deeply oversold, with negative momentum dominating despite intraday volatility and today’s uptick. The analyst stays cautious, given the clear downtrend and lack of firm support below. "Until $112 is convincingly broken to the upside, any rebound attempts look fragile and I remain defensive."

Previously it was reported that ServiceNow, Inc. remains under persistent selling pressure, trading below all major weekly moving averages, with oversold technical indicators such as RSI and MACD reinforcing the prevailing downtrend. Despite recent gains, the asset is expected to consolidate between support at $98.00 and resistance at $108.00, as broader momentum signals limit the probability of a near-term breakout.

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.