Selling pressure pushes ServiceNow stock lower in today's trading

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Servicenow declines 4.11% to $106.40

Highlights

ServiceNow exceeded revenue forecasts with free cash flow jumping 34% to $4.6 billion and remaining performance obligations up 25% to $12.85 billion.
The company expanded share buybacks, accelerated AI-driven product innovation, and grew enterprise accounts amid renewed institutional investor interest.
NOW/USD trades well below major moving averages under heavy selling pressure; indicators signal further downside with a potential trading range of $102.32–$105.96.

Institutional accumulation and product innovation offset by persistent price weakness

ServiceNow reported stronger-than-expected quarterly revenue and a 34% increase in free cash flow to $4.6 billion, with remaining performance obligations up 25% to $12.85 billion. The company launched new share buyback programs and highlighted continued product development in AI-driven solutions, including the Now Assist product line and partnerships with Cohesity and Anthropic around AI governance and security. New and increased positions were reported by institutional investors, and ServiceNow continued expanding its enterprise customer base and strategic partnerships, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees persistent selling pressure as ServiceNow trades below all major moving averages. He notes the decisive bearish momentum across technical indicators, with little immediate support and price action weighed down by negative sentiment. Despite strong revenue and free cash flow, the market ignores positive news, signaling investor distrust. Kharitonov highlights the risk of further declines if $102.32 is breached. "Current structure favors bears — I would exercise caution until a real reversal signal emerges," Kharitonov says.

Viktoras Karapetjanc, expert at Traders Union, views ServiceNow's fundamentals as strong, thanks to robust revenue growth, expanded free cash flow, and increased institutional support. He emphasizes the company's forward-thinking efforts in AI, strategic partnerships, and buyback plans as positive catalysts. Karapetjanc is confident broader adoption and high RPO growth set the stage for a recovery. He says, "Despite near-term pressure, the bullish structure remains intact and further upside is achievable as fundamental drivers take precedence."

Bearish momentum confirmed as technical support remains absent

NOW/USD is trading well below its 20-day, 50-day, and 200-day moving averages ($113.29, $116.30, and $164.54, respectively), indicating strong and persistent pressure from sellers in the short, medium, and long term. The nearest dynamic resistance is marked by the Ichimoku Kijun level at $112.93, while there is no immediate support from major moving averages nearby. Momentum signals are decisively bearish, with the MACD and Average Directional Index (ADX) both calling for further downside pressure. The Relative Strength Index (RSI), Commodity Channel Index (CCI), and Stochastic RSI all indicate oversold conditions on the daily chart, highlighting the risk of a near-term technical bounce but showing no reversal signals. Bull/Bear Power (BBP) is negative, confirming sellers dominate the intraday session, and also flags an oversold scenario. The day's session opened with a downside gap of about $1.82 and has seen the price slip 4.11% to $106.40, putting NOW/USD in the lower part of the daily range with intraday volatility at 4.25%. Intraday tone remains heavy, with persistent pressure after the open and little evidence of stabilization.

Earlier, analysts noted that ServiceNow continued to face broad technical weakness despite positive operating trends and expansion in AI initiatives. With the latest session showing deepened bearish momentum amid fresh institutional activity and strategic partnerships, traders should monitor for a decisive break below $102.32, which would signal further downside and likely continuation of the prevailing downtrend.

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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