DailyIQ
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Last updated 1 minute ago

NOW·ServiceNow, Inc.

$.
+. (+.%)
After Hours
High
$98.93
Open
$94.92
Market Cap
101.87B
52W High
$210.20
Low
$91.81
P. Close
$98.77
P/E
61.00
52W Low
$81.24
Fwd P/E
19.71
DailyIQ Est.
$159.56
Technical Score (1D)
23
SELL
News Sentiment
86
BULLISH
ServiceNow’s CEO Bill McDermott announced a literal “kill switch” for rogue AI agents, a new safety feature that will allow the platform to shut down autonomous workflows that deviate from approved parameters. The move is intended to curb the risk of unintended AI behavior, reassure enterprise customers, and position ServiceNow as a proactive leader in responsible AI deployment. This development comes just after the company reported stronger‑than‑expected Q2 contract growth, with subscription revenue up 24.5 % and performance obligations rising 21 %, prompting Bank of America to lift its price target to $130. BofA highlighted that ServiceNow’s AI agents can leverage the platform’s stored workflow history and infrastructure records, giving them an edge in handling complex enterprise cases and driving the bullish outlook. An Argus Research analyst report, released 11.5 hours ago, notes ServiceNow’s expanding customer base and recurring revenue model, and compares its competitive positioning against other enterprise software vendors. The report provides a baseline valuation and outlines upside potential if the company continues to capture market share, suggesting that the recent AI safety announcement could further strengthen its value proposition. Analysts have questioned whether the current price‑to‑earnings ratio reflects the broader software market sentiment, and they advise monitoring upcoming earnings releases for clearer valuation signals. HSBC, 16.4 hours ago, raised its price target to $179 while maintaining a buy rating, citing confidence in ServiceNow’s growth trajectory and continued market leadership. Traders should watch for regulatory scrutiny of AI safety features, the pace of product adoption following the kill‑switch launch, and the next earnings release for confirmation of contract momentum and AI integration progress.
Earnings Summary
ServiceNow, Inc., a global provider of cloud‑based digital workflow solutions headquartered in Santa Clara, California, offers its AI‑powered Now Platform that enables enterprises to automate IT, customer service, HR, and security processes across a unified ecosystem; the company serves a broad range of industries from finance to healthcare. In the last two quarters, ServiceNow reported Q1 2026 EPS of $0.97 versus an estimate of $0.9733 and revenue of $3.77 billion, followed by Q2 2026 EPS of $0.90 versus $0.8625 and revenue of $3.987 billion; compared to the prior two quarters, Q3 2025 EPS was $0.964 and revenue $3.407 billion, and Q4 2025 EPS was $0.92 and revenue $3.568 billion, showing a steady revenue rise each quarter while EPS dipped slightly in Q1 2026 before rebounding in Q2 2026. ServiceNow has beaten analyst estimates in six of the last seven quarters, with EPS exceeding forecasts in Q4 2024, Q1 2025, Q2 2025, Q3 2025, Q4 2025, and Q2 2026, and only missing in Q1 2026; revenue has consistently grown, moving from $2.957 billion in Q4 2024 to $3.987 billion in Q2 2026. Historically, the company has maintained a pattern of robust subscription revenue growth and EPS beats, with double‑digit revenue increases and margin expansion in recent periods, underscoring strong demand for its AI‑enabled services. Recent news highlights a multi‑year partnership with TeamViewer that expands remote‑work capabilities, a $40 million investment in BusinessNext to broaden its financial‑services reach, and new AI integrations with partners such as Ciroos, Esri, Hexnode, and Hitachi Digital Services; these developments are expected to drive incremental add‑on revenue and deepen platform stickiness. Investors should watch for guidance on subscription revenue, the impact of the Armis acquisition on profitability, and any updates on AI integration progress, as well as changes in analyst coverage or price targets that could influence short‑term sentiment.

EPS

EstBeatMiss
$0.67$0.76$0.84$0.93$1.01Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$0.86$0.90+4.3%
Q1'26$0.97$0.97-0.3%
Q4'25$0.89$0.92+3.2%
Q3'25$0.85$0.96+13.0%
Q2'25$0.71$0.82+14.6%

Revenue

EstBeatMiss
$3.1B$3.4B$3.6B$3.9B$4.1BQ2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$4.0B$4.0B+0.5%
Q1'26$3.8B$3.8B-0.3%
Q4'25$3.6B$3.6B+0.2%
Q3'25 - $3.4B -
Q2'25 - $3.2B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

NOW Stock Snapshot

NOW is currently trading at $97.84, giving ServiceNow, Inc. a market cap of 101.87B and a P/E ratio of 61.0. Today's range spans $91.81–$98.93, with shares opening at $94.92 and moving down $0.93 (0.9%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 86/100.

Over the past year NOW has traded between $81.24 and $210.20 - the current price is +20.4% off the 52-week low and -53.5% from the high. 55 analysts cover the stock with a Buy consensus and a mean 12-month target of $140.25 (range $72.00–$248.00), implying upside of +43.3%.

The options market is expressing concern about NOW - elevated put activity in large-cap Technology names with SELL signals (23/100) is common when the technical and sentiment inputs (bullish, 86/100) both deteriorate. Price: $97.84 (near 52-week lows). (P/E: 61.0) At 101.87B in capitalization, that hedging activity from institutional holders can become a feedback loop that amplifies the initial selling pressure. Range: $81.24–$210.20.

The current SELL phase for NOW (23/100) at $97.84 (near 52-week lows) suggests that the market is discounting either a fundamental deterioration or a sector headwind that hasn't fully appeared in the earnings line yet. Sentiment at 86/100 (bullish) confirms that news flow is not providing a counternarrative. At 101.87B in Technology capitalization, NOW has the liquidity for institutional exits to be orderly — but orderly doesn't mean shallow within the $81.24–$210.20 range.