AI expansion, buyback move, and strong earnings

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Servicenow jumps 5.45% today to $120

Highlights

ServiceNow posted over 20% revenue growth in Q4 2025 with $3.57 billion in revenue and strong EPS, surpassing analyst forecasts.
The company expanded its AI offerings with Autonomous Workforce, new integrations, FedRAMP approval, and initiated a $2 billion share repurchase after boosting buyback authorization.
ServiceNow’s price showed short-term bullish momentum but technical indicators signal overbought conditions, suggesting a likely pullback with an expected range of $114.00 to $124.00 in the near term.

Buyback surge and strong guidance as product launches spur optimism

ServiceNow expanded its AI platform in late February and early March 2026 with the launch of Autonomous Workforce and EmployeeWorks, new telecom roaming and security integrations, and achieved FedRAMP Authorization for its Moveworks product. The company initiated a $2 billion accelerated share repurchase after increasing its buyback authorization by $5 billion. ServiceNow reported over 20% revenue growth in Q4 2025, with quarterly revenue reaching $3.57 billion and adjusted earnings per share of 92 cents, both exceeding analyst expectations. Recent insider share purchases and an upcoming Morgan Stanley conference appearance are also attracting attention.

Bullish short-term signals amid split momentum and pullback risks

Short-term technicals show bullish momentum for NOW, with the current price far above the MA-20 and just above the Ichimoku Kijun level at $117.02, which now serves as immediate support. However, the price remains below both the MA-50 and MA-200, maintaining medium- and long-term bearish pressure. Momentum indicators are divided: the MACD and ADX indicate persistent seller dominance, while RSI sits at 50.70 and provides a buy signal. Stochastic RSI and Commodity Channel Index both show strongly overbought conditions, and the Bull/Bear Power points to strong intraday buying, all against a neutral stance from the Awesome Oscillator. High intraday volatility and proximity to the session’s highs highlight ongoing upside strength but also present a heightened risk of a technical pullback due to divergence between oscillators and price action.

Elevated downside risk as volatility bands constrain outlook

For the next five sessions, NOW is expected to trade within a typical volatility band of $114.00 to $124.00. The likelihood of further price increases remains very low (less than 20%), so downside risks are elevated with bias toward sideways movement inside this $10 range. A breakout above $124.00 would require a clear shift in momentum, while a drop below $114.00 could trigger renewed selling and further downside. Medium- and long-term indicators remain bearish, so caution is warranted after the recent sharp move higher.

Viktoras Karapetjanc, expert at Traders Union, sees ServiceNow’s strong revenue beat, AI expansion, and aggressive buybacks as major positives aligning with supportive corporate sentiment. He notes short-term momentum is bullish, but the price holds below key medium- and long-term averages, and technical risks persist. Macro and regulatory developments, like FedRAMP authorization, add to institutional confidence. However, sideways action is likely barring a clear break above $124.00. "I remain constructive on NOW, but advise waiting for sustained strength above $124.00 before chasing further upside."

Previously it was reported that ServiceNow, Inc. is exhibiting short-term bullish momentum, trading above its 20-day moving average while remaining below its 50-day and 200-day averages, signaling persistent medium- and long-term downtrend pressures. Despite strong insider buying and strategic acquisitions, technical indicators including a bearish MACD and overbought oscillators highlight ongoing volatility, with key resistance near $117 and downside risks contained within a volatility band of $108 to $118.

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.