So far, 2026 has been a bad time to be a software stock. The iShares Expanded Tech-Software Sector ETF BATS: IGV is a good proxy for software industry performance.
ServiceNow is the connecting layer for enterprises, as it employs its CMDB and CSDM technology to ensure companies can keep track of their operations. The firm's AI Control Tower and RaptorDB Pro products saw contract values rise substantially, as customers continue to seek out solutions for governance and scaling related to AI. ServiceNow's recent acquisitions show the company is on a path towards becoming a single platform that will help firms with both cybersecurity and orchestration of AI agents.
NOW shares are down nearly 42% in three months, but accelerating AI adoption, growing partnerships and a discounted valuation support a hold case.
Some of the biggest stocks in the technology and consumer staples sectors are kicking off 2026 with notable buyback announcements. This includes Western Digital NASDAQ: WDC, one of the market's best-performing names of 2025.
Tom Yeung here with your Sunday Digest . In the mid-2010s, Wall Street became smitten with finding the next iPhone supplier.
ServiceNow (NOW) is rated BUY, driven by robust AI-fueled growth, strong financials, and high customer ROI. NOW's hybrid pricing model offsets potential seat-based revenue pressure, supporting rising ARPU and strong renewal rates. AI adoption is accelerating: Now Assist surpassed $600M ACV, with deals involving 5+ products up 10x YoY.
Zacks.com users have recently been watching ServiceNow (NOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
ServiceNow: Becoming The Go-To Platform For AI
Valuation concerns capped ServiceNow NYSE: NOW price action in 2025, setting up a correction and buying opportunity unfolding in 2026. The Q4 release not only affirmed the company's strengths but also its longer-term outlook and deepening value.
Over almost three months from late October to January, ServiceNow (NOW)'s stock fell 37%, despite modest revenue growth. Concerns regarding AI disruption, a cautious outlook for FY26, and an aggressive acquisition strategy shook investor confidence, overshadowing earnings and share repurchase initiatives.
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ServiceNow (NOW) is downgraded to Hold after a ~35% correction, driven by valuation compression despite resilient fundamentals. Q4 results showed 21% subscription revenue growth and 31% non-GAAP operating margin, with 2026 guidance broadly in line and no material deterioration. Valuation multiples have compressed to ~8.3x EV/forward revenue, near three-year lows, reflecting market skepticism about AI-driven growth acceleration.