NOW Stock Has Tumbled 33% This Year: Will Q2 Report Today Inject Fresh Life?

• NOW stock rose in Wednesday’s premarket trading.
• Analysts expect ServiceNow’s second-quarter revenue to rise 22% to $3.93 billion and adjusted income to increase 5% to $0.86 per share.
• Stocktwits sentiment for NOW remained ‘bearish’ even as Wall Street maintained its bullish stance on the company heading into the results.

ServiceNow stock rose 0.2% in premarket trading on Wednesday, bucking a selloff in the broader market, ahead of the company’s quarterly report scheduled for after-market hours.

ServiceNow has been among the software stocks analysts have most frequently flagged for a rebound, following a broad-based rout that swept through names such as Adobe, Intuit, Salesforce and others.

NOW stock has seesawed since March, underscoring mixed investor sentiment, though the stock remains down 33.4% this year. The iShares Expanded Tech-Software Sector ETF (IGV), seen as a benchmark for software stocks, has declined 14.4% year to date.

Earlier this week, Morgan Stanley started coverage of ServiceNow with an ‘Overweight’ rating and $180 price target. 

ServiceNow is one of only five companies in the analyst's coverage to rank among the top 15 overall on both moat and journey, Morgan Stanley said in a research note, adding that ServiceNow has continued to build on its durable competitive advantages.

Recent Catalysts For NOW

In recent months, ServiceNow has doubled down on its AI strategy while expanding into cybersecurity. It completed its $7.8 billion acquisition of cyber asset management firm Armis, raised its 2026 AI revenue target to $1.5 billion, and reiterated its goal of surpassing $30 billion in annual subscription revenue by 2030 as AI products become a larger share of its business. 

It also expanded enterprise AI partnerships, including with Wipro and Accenture, to help customers deploy agentic AI across IT, HR, procurement and security workflows.

NOW Q2 Expectations

Analysts expect ServiceNow’s second-quarter revenue to rise 22% to $3.93 billion and adjusted income to increase 5% to $0.86 per share, according to data from Koyfin.

They overwhelmingly recommend owning or buying ServiceNow at current levels. Currently, 44 out of 49 analysts rate the stock ‘Buy’ or higher, with an average price target of $140.14. That target implies an upside of 37% from the stock’s closing price on Tuesday.

NOW Retail View

On Stocktwits, retail sentiment for NOW remained ‘bearish,’ unchanged from the previous day, though some traders turned more optimistic following the stock’s premarket gains.

“$NOW OK it looks like we’re up a little bit in the green maybe 50 Cent but at least it’s green and now I don’t have to have a panic attack all right go back to bed,” a trader wrote.

Another said: “$NOW this is going to lift the entire software sector today.”

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