ServiceNow Inc (NYSE:NOW) shares are trading flat on Thursday as investors continue to weigh a more constructive software narrative tied to AI product momentum and a friendlier analyst tone.
- ServiceNow stock is showing downward pressure. What should traders watch with NOW?
What Is Driving ServiceNow’s Stock Momentum?
The latest push follows a rollout with Accenture of two AI-focused offerings: managed security services built on the ServiceNow AI Platform and an Accenture AI-powered automation solution aimed at lowering the cost and complexity of modernizing enterprise risk and security operations.
The setup also got a boost from Guggenheim upgrading the stock to Buy and arguing software valuations are pricing in “extinction,” framing the pullback as a better entry.
ServiceNow also picked up a high-visibility nod on TV, with Stephanie Link calling it a buy as one of CNBC’s “Final Trades,” keeping the Guggenheim July 1 upgrade in focus for momentum traders.
In the same segment, Microsoft was highlighted after announcing 4,800 job eliminations, and that kind of mega-cap cost discipline provides a benchmark for ServiceNow because tighter enterprise budgets can accelerate demand for workflow automation and AI-driven efficiency tools like NOW’s platform.
Critical Price Levels To Watch For NOW
From a longer-term lens, the chart is still trying to repair damage: the stock is down 48.63% over the past 12 months and remains 20.3% below its 200-day SMA ($131.21), which is why rallies can still run into “prove it” selling. Even after the bounce, the moving-average stack is mixed, with the 20-day SMA still below the 50-day SMA (bearish) and the death cross from August 2025 (50-day below 200-day) still acting as a trend headwind.
Near term, price is back on top of the key shorter averages—about 3.5% above the 20-day SMA ($100.99) and about 3.1% above the 50-day SMA ($101.39)—which helps explain why dips have been getting bought. Momentum is best read through RSI here: at 51.31 it’s neutral, suggesting the rebound isn’t stretched yet and still needs follow-through to turn into a sustained uptrend rather than just a bounce.
- Key Resistance: $111.00 — a round-number area that can act as a nearby “speed bump” for rebounds – Key Support: $89.50 — a prior demand zone that sits above the $81.24 52-week low area
How ServiceNow Automates Business Processes
ServiceNow provides software that helps enterprises structure and automate business processes through a SaaS model, with its roots in IT service management. Over time, it expanded across IT workflows and pushed workflow automation into customer service, HR service delivery, and security operations, while also offering an application development platform as a service.
That matters for Thursday’s move because the Accenture tie-up is aimed directly at security operations and risk workflows—areas where big customers often want a packaged solution plus implementation help. If those AI-led offerings translate into faster adoption and clearer monetization, it can help the stock’s longer-term trend catch up to the improving near-term tape.
ServiceNow’s rally is also being framed against a still-choppy software tape, with IGV down 12% year to date even as the “SaaSpocalypse” unwind narrative gains traction. That relative setup is part of why Guggenheim argued the group is being valued for “extinction,” a view traders are leaning into and driving ServiceNow’s stock momentum.
ServiceNow Earnings Preview: What Analysts Expect
The countdown is on: ServiceNow is set to report earnings on July 22, 2026 (confirmed).
- EPS Estimate: 76 cents (Down from 82 cents YoY)
- Revenue Estimate: $3.93 billion (Up from $3.21 billion YoY)
- Valuation: P/E of 64.2x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $138.21 (high: $236.00; low: $85.00) across 50 analysts. Recent analyst moves include:
- Guggenheim: Upgraded to Buy (Target $125.00) (July 1)
- BTIG: Buy (Maintains Target $150.00) (June 29)
- Benchmark: Buy (Raises Target $130.00) (June 15)
ServiceNow’s Benzinga Edge Rankings Explained
Below is the Benzinga Edge scorecard for SERVICENOW, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 8.02) — Despite the current bounce, the longer-term trend profile still screens as lagging.
- Quality: Neutral (Score: 38.06) — Fundamentals screen as middle-of-the-road versus the broader market.
- Value: Weak (Score: 12.5) — The stock screens as expensive on traditional value metrics, consistent with a premium SaaS multiple.
- Growth: Strong (Score: 87.59) — The market is still pricing in above-average growth expectations.
The Verdict: SERVICENOW’s Benzinga Edge signal reveals a growth-heavy profile with weak value and weak momentum. For longer-term bulls, the cleaner setup is a sustained reclaim of major long-term averages; for traders, the risk is that rallies fade quickly if momentum doesn’t keep improving into earnings.
NOW Stock Price Activity on Thursday
NOW Stock Price Activity: ServiceNow shares were trading 1.35% lower at $106.33 at the time of publication on Thursday, according to Benzinga Pro data.
Image: Shutterstock
