ServiceNow: Retail Buy Calls Pick Up as NOW Stock Crashes Post Q1 Report

• ServiceNow management said the Middle East war led to a delay in contract closures, which affected its Q1 subscription revenue.
• The SaaS firm reported Q1 results above expectations and raised its 2026 subscription revenue forecast.
• Retail sentiment on Stocktwits for NOW shifted to ‘extremely bullish’ from ‘bullish.’

ServiceNow shares fell 13% in early premarket trading Thursday after the software major said the conflict in the Middle East weighed on subscription revenue last quarter. The disclosure overshadowed an otherwise upbeat quarter, even as it triggered a wave of bullish sentiment and buy calls among retail traders.

ServiceNow said its subscription revenue growth faced about a 75-basis-point headwind from delayed closures of several large on-premises ​deals in the region due to the ongoing conflict. 

NOW Q1 Earnings Recap

Still, subscription revenue increased 22%. Total revenue increased at an identical pace to $3.8 billion, beating expectations of $3.74 billion. Profit increased by $0.01 to $0.97 per share, also higher than the Street’s target.

Service forecasted $3.815 billion to $3.820 billion in subscription revenue for the ongoing quarter, and raised its outlook for 2026. The company now expects subscription revenue of $15.74 billion to $15.78 billion, up from its earlier outlook of $15.53 billion to $15.57 billion.

Down more than 50% from its 52-week high amid a broader selloff in software stocks, ServiceNow is increasingly being seen as a potentially attractive entry point. Analysts have consistently flagged the stock as oversold and positioned for a rebound.

Retail’s View On NOW

On Stocktwits, the retail sentiment for NOW shifted to ‘extremely bullish’ on Thursday, from ‘bullish’ the previous day, with message volume for the ticker rising 745% in the last 24 hours. NOW featured among top trending tickers in the early hours of the day.

“Good one at good prices for those who missed the boat earlier in (the) $80s (range). I guess the management will also purchase from (the) market,” a trader said. “I won’t be surprised if it closes decently tomorrow by EOD.”

“Don't fall for the rage bait,” said another trader, referring to the stock’s drop. ServiceNow raising its annual forecast “is hard evidence that they are successfully monetizing AI, not being disrupted by them.”

In an investing group on Reddit, a post from a trader considering buying NOW stock after the latest drop got 128 comments and over 70 upvotes.

ServiceNow shares had climbed about 25% in the last eight sessions until Wednesday's close. Still, they are down 33% year to date.

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