Why Is NOW Stock Soaring In Premarket Trading Today?

• The results eased concerns of a “SaaSpocalypse” after software stocks endured heavy selling for much of 2026 on fears of AI-driven disruption.
• ServiceNow CEO Bill McDermott told the Wall Street Journal that about 50% of its net new business is driven by non-seat-based pricing models.
• Stocktwits sentiment for NOW shifted to ‘extremely bullish’ from ‘bearish’ on Thursday.

ServiceNow stock rose nearly 7% in early premarket trading on Thursday after the software company reported second-quarter sales and profit higher than Wall Street’s expectations and raised its forecast for its annual subscription revenue.

The results eased concerns of a “SaaSpocalypse” after software stocks endured heavy selling for much of 2026 on fears of AI-driven disruption.

ServiceNow’s revenue rose 24% to $3.99 billion, boosted by a similar growth rate for subscription revenue and higher than analysts’ expectation of $3.93 billion from FactSet. The company said its backlog increased 21% to $13.20 billion as of the end of June 30

ServiceNow earned $0.90 per share on an adjusted basis, higher than the $0.86 expected. The company now expects 2026 subscription revenue of $15.760 billion to $15.780 billion, ​up from its earlier projection of $15.735 billion to $15.775 billion. 

NOW CEO Says Half Of New Business Not Seat-Based 

ServiceNow CEO Bill McDermott told the Wall Street Journal in an interview that about 50% of its net new business is driven by non-seat-based pricing models, marking a shift from the traditional sales model used by software-as-a-service companies.

“We’re playing an entirely different game. We’re not a feature company and we’re not a function company, we’re a platform company and we go across end-to-end all functions…from IT to employee experience, to the customer and the developer experience, all of this…on one platform,” McDermott said.

He added that the company was also pushing into newer markets, such as customer relationship management and cybersecurity, which has increased the company’s total addressable market (TAM) to at least $600 billion from $90 billion when he joined.

In the early hours on Thursday, ServiceNow announced an expansion of its customer tie-up with Experian, a data and tech firm. Experian is significantly expanding its deployment of the ServiceNow AI Platform to drive enterprise-wide AI-led, the former said in a press note.

Retail View On NOW

NOW was the second top trending stock on Stocktwits early Thursday, with the retail sentiment shifting to ‘extremely bullish’ from ‘bearish.’

“NOW up 5% is a normal day move. Should be up at least 10%,” said a trader, while another wrote: “$NOW legitimately going to 500 in next 24 months I will continue to throw paychecks here religiously.”

NOW shares had dipped 38% year to date to close at $95.46 on Wednesday.

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