ServiceNow stock drops 6.41% as weak technicals outweigh revenue growth and buyback news

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Servicenow slides 6.41% to $99.65

Highlights

ServiceNow reported 21% year-over-year subscription revenue growth in Q4 FY2025, underscoring robust business momentum and ongoing customer demand.
The company launched a $5 billion share repurchase program, including a $2 billion accelerated buyback, and appointed Danielle Fontaine as Chief Accounting Officer in February 2026.
NOW trades at $99.65, well below major moving averages, with strong bearish momentum and an expected trading range of $96.00–$104.00 over the next five days.

Business momentum and buybacks as leadership and AI initiatives expand

ServiceNow recently reported 21% year-over-year subscription revenue growth for the fourth quarter of its 2025 fiscal year, highlighting ongoing business momentum. The company authorized a new $5 billion share repurchase program, including a $2 billion accelerated buyback, and further strengthened its finance leadership by appointing Danielle Fontaine as Chief Accounting Officer and Corporate Controller in February 2026. Additionally, ServiceNow has accelerated the integration of Anthropic’s Claude AI models to drive productivity gains and invested in its enterprise platform through targeted acquisitions.

Oversold signals and absent supports as bearish momentum persists

NOW’s technical landscape remains bearish, with the current price substantially below the MA-20, MA-50, and MA-200, and facing the nearest dynamic resistance at the Ichimoku Kijun level of $125.06. There is no nearby established support on the daily chart. Momentum indicators such as the MACD and ADX confirm strong downward pressure, while RSI (28.93) and CCI (-92.67) reflect oversold conditions. The Bull/Bear Power indicator is also oversold, signaling persistent seller dominance, and the Awesome Oscillator remains neutral but does not contradict the bearish trend.

Limited upside potential as range-bound outlook dominates

For the next five trading days, NOW is expected to trade within a typical volatility band of $96.00 to $104.00. The probability of a price increase is low, with continued sideways movement between $96.00 and $104.00 as the baseline scenario. A sustained recovery would require a move above the $104.00 – $105.00 area and could target resistance at $110.00, but the technical outlook makes this unlikely. If the price falls below $96.00, a deeper decline toward $92.00 could occur.

Anton Kharitonov, expert at Traders Union, sees ServiceNow’s technical picture as firmly bearish, with strong downward pressure confirmed by both price structure and momentum indicators. The company’s solid fundamentals, including strong subscription growth and an aggressive buyback, have not shifted negative sentiment or changed the technical setup. He maintains a defensive stance while prices sit below all major moving averages and with no clear support in sight. "Base case is sideways action between $96.00 and $104.00 — without a break above $104.00, I remain cautious on any recovery attempts."

Last time, analysts noted that ServiceNow Inc. (NOW) is trading well below all major moving averages, with persistent bearish momentum reflected in oversold RSI and weak MACD readings. Immediate dynamic resistance is identified at the Ichimoku Kijun level, with volatility and downside risk elevated due to the lack of nearby support.

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.