NOW slides around 3.5% as stock trades below key moving averages and sellers dominate

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Servicenow slides 3.59% today on earnings risk

Highlights

ServiceNow is set to announce Q2 2026 earnings amid strong demand for its AI-driven NowAssist and workflow automation solutions.
Wall Street anticipates potential upward revisions to full-year 2026 subscription revenue guidance and cRPO targets as early renewals support solid growth.
Shares face persistent selling pressure, trading below major trend indicators, with a 74% probability of further declines and a near-term price range of $94.69 to $102.11.

Subscription strength faces skepticism as sellers dominate ahead of earnings

ServiceNow is preparing to report its second-quarter earnings, scheduled for release on Wednesday, July 22, 2026. The announcement follows a period of increased adoption of its AI-powered NowAssist products and continued demand for enterprise workflow automation. Wall Street expects that ServiceNow could raise its full-year 2026 subscription revenue guidance and meet cRPO targets, supported by early renewals and a solid subscription growth outlook, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees persistent weakness in ServiceNow’s price action. He notes the stock trading below all key moving averages, underlining a broad loss of confidence among investors. The upcoming earnings and increased adoption of NowAssist products have yet to offset the negative sentiment, with heavy technical resistance looming at $98.43 and $101.59. Kharitonov warns that the probability of further downside, given the 74% estimate, should keep traders defensive. "Current momentum suggests caution is warranted until ServiceNow regains key support levels or reverses its bearish structure."

Viktoras Karapetjanc, expert at Traders Union, believes ServiceNow’s long-term fundamentals remain robust amid strong enterprise demand and solid subscription growth. He highlights that early renewals and AI-powered product adoption may pave the way for positive revenue guidance revisions. Despite near-term pressure, Karapetjanc sees further growth potential if the company meets cRPO targets and lifts its outlook. "With expanding workflow automation demand, I expect ServiceNow to deliver upside surprises that could reignite bullish momentum."

Parshwa Turakhiya, analyst, observes strong short-term bearish signals with ServiceNow trending firmly beneath the $98.43 resistance. He points to sideways volatility, hinting at tactical setups for range traders ahead of earnings. With risk skewed to the downside, Turakhiya remains neutral, advising focus on price response near key levels. "This is a waiting game — if we see strength above $98.43, quick upside trades open up, but a drop below $97.88 gives bears clear short-term control."

Persistent downside bias as price holds beneath all major averages

ServiceNow is trading well below its 20-day ($103.34), 50-day ($103.83), and 200-day ($128) moving averages, signaling persistent seller pressure across short-, medium-, and long-term timeframes. The nearest resistance is at $98.43 and support is at $97.88, with the Ichimoku Kijun ($101.59) acting as additional resistance. This strong bearish alignment below all moving averages confirms weakness in the medium- to long-term structure.

Earlier, analysts noted that ServiceNow’s stock was experiencing persistent bearish pressure despite strategic growth initiatives. The latest technical setup confirms this negative trend, making a sustained break below $97.88 the pivotal downside risk traders should monitor in the days ahead.

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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