Q2 earnings beat with 24% revenue growth: NOW resistance levels in focus

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ServiceNow surges 9.1% to $107.77 today

Highlights

ServiceNow posted a 24% year-over-year revenue increase to $3.99 billion, powered by robust demand and operational execution.
Upgraded 2026 guidance, new AI partnerships, and strategic acquisitions underline a focus on generative AI growth and expanding enterprise adoption.
Technical momentum is strongly bullish with overbought signals; price is forecast to fluctuate between $101.93 and $116.12 with high upside probability.

Upbeat earnings and AI deals drive institution-led buying momentum

ServiceNow's second-quarter results delivered a notable outperformance, with revenue rising 24% year over year to $3.99 billion and adjusted earnings per share reaching $0.90, reflecting strong customer demand and effective execution. Following these results, the company has upgraded its full-year 2026 guidance, pointing to faster adoption of generative AI solutions and sustained enterprise demand as the principal drivers for future growth. Additional catalysts include the announced partnership with TeamViewer for AI-led IT automation, the spotlight on its Armis cybersecurity acquisition for enhanced AI governance, and a $40 million investment in BusinessNext to strengthen its reach in AI-powered financial services. These developments collectively reinforce market conviction and help explain the strong buying interest in ServiceNow shares.

Bullish bias holds above short-term support as overbought signals intensify

On the technical front, NOW is trading above the MA-20 at $98.2 and the MA-50 at $100.46 on the working timeframe, but remains below its MA-200 on the daily chart at $126.7. The Ichimoku Kijun at $99.65 is acting as immediate support. Momentum indicators are strong: MACD and ADX both show Buy signals, while RSI has reached 74.98 alongside overbought readings in Stochastic RSI, CCI, and Bull/Bear Power, all signaling strong buyer dominance intraday. Awesome Oscillator is also aligned with the sustained uptrend, while volatility is notably elevated after today’s gap and surge.

Further upside likely as institutional support counters short-term pullback risk

Looking ahead, the next several days are likely to see NOW trade within the $101.93 to $116.12 band. The probability of further upside remains high at 75%, as institutional buying and strong fundamentals support the ongoing rally. The baseline scenario calls for stabilization around current levels, while a break above established resistance could prompt an additional advance. Alternatively, a drop below the Ichimoku Kijun support at $99.65 may trigger profit-taking and a sharp pullback.

Anton Kharitonov, expert at Traders Union, sees strong fundamentals and technical momentum in ServiceNow, but urges caution as overbought signals persist. The upgraded guidance and robust demand support the ongoing move, yet the stock remains below its key long-term average. He believes the risk of a near-term pullback remains if support at $99.65 fails. "Until NOW clears the $126.7 level decisively, I stay defensive and look for confirmation before committing to further upside."

Earlier, analysts noted that ServiceNow shares remained under technical pressure despite strong growth in its AI-driven business, with the outlook hinging on a decisive shift in momentum. The latest surge in both price and institutional buying confirms this bullish reversal, making sustained closes above the $116.12 resistance a key trigger for continued upside in the near term.

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.